Shale Producers Poised for Strongest Quarterly Profits Since 2022

U.S. shale producers are poised to report their strongest quarterly profits since 2022 due to the recent Iran war-driven oil price surge.

The conflict in late February disrupted Middle East energy supplies and shipping, sending Brent crude from an average of $69.82 a barrel in January to $126.41 in April, and WTI from $65.17 to $109.64.

Analysts expect companies like ConocoPhillips, Occidental Petroleum, EOG Resources, Diamondback Energy, and Devon Energy to post sharply stronger second-quarter earnings due to the increased cash flow across the sector.

Rather than investing in production, many shale producers are likely to prioritize dividends, share buybacks, and balance-sheet strength, according to Morningstar analyst Joshua Aguilar.