PXD - Marathon upgraded to buy at Piper - 25% upside on shareholder returns pivot

Piper upgraded Marathon (NYSE:MRO) to buy and raised the Company's price target to $27, showing 25% upside from current prices as Management pivots to a capital-returns strategy. This comes on the back of a recent upgrade to buy at Scotia, strong earnings, and a commitment from Management to allocate cash flow away from production growth. Piper's analyst sees Marathon (MRO) returning $3.1b of dividends and buybacks in 2022 (~18% of current market cap).  Marathon's shareholder return strategy has largely been followed, with peers Continental (NYSE:CLR), Pioneer (NYSE:PXD), Devon (NYSE:DVN) and now Diamondback (NASDAQ:FANG) all pivoting away from growth and towards shareholder returns. Pioneer's Sheffield has gone so far as to say, "if the President wants us to grow, I just don't think the industry can grow anyway."

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Marathon upgraded to buy at Piper - 25% upside on shareholder returns pivot