XLE - Pioneer Resources' New Variable Dividend Policy Could Quadruple Its Yield

March, 14 2021 03:00 PM SPDR Select Sector Fund - Energy Select Sector

Pioneer has 920,000 net acres in the core of the Permian Basin - none of which is on Federal land.
The recent Parsley acquisition will lead to additional cost synergies and operational efficiencies.
PXD delivered $294 million of FCF in Q4 and is initiating a variable dividend plan that will return ~75% of FCF to ordinary shareholders.
As a result, and given WTI at $55-$60/bbl, PXD's yield could easily rise from the current 1.4% to a range of 5-6%.

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Company Name:	SPDR Select Sector Fund - Energy Select Sector
Stock Symbol:	XLE
Market:	NYSE