ECA - The Market Tells Oil Companies To Return Capital Not Grow
With oil down a little and oil and gas stocks down much more, the stock market is sending a message to management teams: stop growing. Buy back shares, pay down debt, complete accretive and synergistic acquisitions, but stop spending so much money drilling.
Above is a chart showing an oil price index (OIL) compared to several mid cap oil and gas producers that have recently reported and given 2019 guidance. The worst performers, Concho (CXO) and SM Energy (SM), are down more than 15% in the