PXD - BofA tackles U.S. oil cash use debate: Buybacks or dividends?

BofA is reiterating its view that U.S. oil/gas companies are still in the early part of an "extended" cyclical rebound with echoes of the mid-2000s. "Last year may seem like an eternity ago," the bank says, but it's the first of a "multiyear reset." And while valuations have recovered from lows of last year, only a few of the companies are higher vs. their pre-COVID-19 levels. Only two names among large-cap exploration/production companies have outperformed the broader market in that span, it notes - Hess (NYSE:HES) and Devon Energy (NYSE:DVN) - but their path upward has been highly volatile, with 50%-plus drops in 2020: "For most investors, durable exposure simply may not be worth the effort!" Why is that? "The culprit exposed by our valuation framework is a steeply backwardated oil curve that has capped valuations for the simple reason that the conditions necessary to lift the long end of

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BofA tackles U.S. oil cash use debate: Buybacks or dividends?