- As oil prices average well above $60/bbl (despite the pullback), energy companies are going to face growing pressure to increase capital allocation to shareholders.
- By the time of Q3 earnings announcement, we fully expect more companies to announce more shareholder-friendly capital allocation policies, providing a pivotal tailwind/catalyst into year-end.
- Companies with no debt and a positive cash surplus like SandRidge Energy have already announced very shareholder friendly buyback plans.
- We expect other lower debt leverage names to do the same into year-end.
For further details see:
An Important Catalyst Is Coming For Energy Stocks Into Year-End