Shale Drillers Warn of Higher Costs as They Report Record Profits

Shale companies are reporting banner profits but are warning that inflation in the oil patch is leading them to increase their spending.

Oil prices hovering around $110 a barrel in the second quarter lifted the earnings of some of the largest shale companies. Pioneer Natural Resources Co., Continental Resources Inc., Diamondback Energy Inc., Coterra Energy Inc. and Matador Resources Co. all reported historically high profits in recent days, according to FactSet.