JP Morgan Chase is Betting on Frac Pump servicing companies

JP Morgan Chase says it expects U.S. shale production to continue rising if WTI prices hold steady above $60/bbl. But even as companies keep drilling, they’ll be hard-pressed to secure enough frack crews, adding “another wrinkle to the already tight labor and supply chain equations,” the report said.

JPMorgan Chase & Co. grew its holdings in shares of Keane Group, Inc. (NYSE:FRAC) by 152.2% during the third quarter, according to the company in its most recent disclosure with the SEC. The fund owned 351,005 shares of the company’s stock after buying an additional 211,839 shares of KEAN GROUP during the quarter. JPMorgan Chase & Co. owned 0.34% of Keane Group worth $5,858,000 at the end of the most recent reporting period.

A tight services market suggests having more scale will be increasingly important for independent explorers, JP Morgan said.

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