For instance, in the first quarter of 2015, Pioneer’s production cost per barrel of oil equivalent was $12.56, and a year later, it was down to $9.17. The company added to reserves at a cost of $10.18 per barrel, which is much cheaper than before.
Instead of meticulously picking through the various unconventional oil and gas producers, investors can turn to a broad diversified ETF play that takes on this nascent market segment.
Related: Moves Afoot for Energy ETFs – Exxon Mobil, Chevron
FRAK holds 45 unconventional oil producers and includes about 81.4% U.S. frackers and 18.5% Canadian oil sands companies. Among the ETF’s top holding, Eog Resources (NYSE: EOG) makes up 7.4% of the underlying portfolio, along with Occidentail Petroleum (NYSE: OXY) 7.2%, Anadarko Petroleum (NYSE: APC) 7.0%, PXD 6.2% and Devon Energy (NYSE: DVN) 6.1%.
VanEck Vectors Unconventional Oil & Gas ETF