DVN - Outperformance in unlikely places - E&Ps up with oil down as businesses transform

E&Ps, namely the US shale producers, are transforming before investors' eyes. And so far, the market likes it. Oil is down nearly 3%, and E&Ps are the best performing sub-sector in the market, as the transition away from growth and towards shareholder returns accelerates.  Ahead of earnings, many speculated on the sub-sector's commitment to shareholder returns, with WTI in the 90s (NYSEARCA:USO). So far, the commitment appears strong. Setting aside Chevron (NYSE:CVX) and Exxon (NYSE:XOM), companies that increased shale production plans at the expense of production elsewhere, the pure-play shale names are resisting the temptation to drill.  Pioneer (NYSE:PXD) reported after the close Wednesday, and the industry leader plans for production to fall almost 8% in 2022, when compared to Q4 levels. Goldman sees the Company paying an 11% dividend in 2022, while continuing to buy back shares. The stock is up 3.5% Thursday, despite falling oil prices.   Marathon (NYSE:MRO)

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Outperformance in unlikely places - E&Ps up with oil down as businesses transform