The U.S. exploration sector delivered its fourth straight quarter of outperformance in 3Q2021, setting the sector up for what should be solid growth in 2022, according to energy prognosticators.

Natural gas prices

Solid cash flow by the domestic exploration and production (E&P) companies was accelerated by the high commodity prices. However, the three-month period also represented a “stabilized activity cadence for the vast majority of upstream operators,” said Wells Fargo Equity Research analysts led by Nitin Kumar. 

“Energy could be entering a new ‘super cycle’ in 2022, and we see U.S. E&Ps as the tip of the spear.”

Mercer Capital analysts said the “overarching narrative” for the 3Q2021 results “was an oil and gas industry reaching a relatively steady operational state, with...