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From The Wall Street Journal today: oil companies starting to buy back their shares.
Several oil and gas producers, including Pioneer Natural Resources Co. and Anadarko Petroleum Corp., have started the year by initiating or enlarging share-repurchase programs. The buybacks reflect oil prices that have climbed enough for them to drill profitably and shareholders who have urged companies to focus more on the bottom line.It would be nice to see more dividend increases also (some companies have already reported that they will increase dividends or distributions).
It also suggests that energy producers think their shares, which have lagged behind the broader market, are underpriced.
Buying back stock reduces the number of shares in the market, boosting the value of those remaining. Doing so is a reversal from the past three years when energy producers pumped new stock into the market to raise cash so they could pay down debt and keep rigs drilling.
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The SandRidge / Midstates Merger -- Michael Fillon
Link here at SeekingAlpha.
Simply not appealing.
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Photograph By Sophia
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