The lack of growth in shale production, currently inching higher but primarily from DUC- Drilled but Uncompleted wells, has been largely attributed to capital discipline. Shale companies have spoken almost in unison that the higher prices now being seen would not be enough to deter them from the balance sheet repair and shareholder returns strategy in lieu of growth that many embarked upon a year and a half ago. A factor that has not been widely reported is the level of hedging losses that are stripping away much of the upside presented by the current price scenario for WTI-West Texas Intermediate and Brent. In this article, we will look at the drivers for this strategy and what the impact may be to Pioneer and other shale companies that took similar steps. Pioneer Natural Resources Pioneer Natural Resources, (NYSE:PXD) sent a shockwave through the energy equity markets Tuesday with their […]