Shale Firms Face Investor Frustration
In the northeast, gas driller EQT Corp.’s challenges with well spacing are partially behind a battle with the founders of a company it acquired in 2017. With the backing of major investors including D.E. Shaw & Co., brothers Toby and Derek Rice have been urging directors to depose the current CEO and install Toby Rice in his place, among other operational changes. Laredo Petroleum Inc. and Matador Resources Co. have also faced questions about how they space wells.
“We’re at a point now where operators are really resetting expectations, and they’re taking corrective measures,” said Shak Ahmed, a research analyst at RS Energy Group. “We expect that to actually improve results going forward, but it’s obviously a pretty painful process getting to that point.”
--With assistance from Ryan Collins.
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