Summary
The 1995 report indicated that over the 1985-1993 period:
The key difference between surviving and non-surviving independents was the cost of reserve replacement
Measures of financial performance and investor valuation were about the same for the two groups of companies
The lower level of oil prices following the 1986 crash tended to push less efficient producers out of U.S. oil and gas production
This update of the 1995 report for 1993-1998 revealed contrasting results:
Little difference in reserve replacement costs between survivors and nonsurvivors was apparent, although differences in full-cycle costs were apparent by the end of the period
Nonsurvivors had a much heavier debt load and interest expense burden at the beginning of the period than did surviving independents