Three Wells Coming Off Confidential List Over Next Three Days -- December 27, 2023

Locator: 46397B.

WTI: $74.42.

Friday, December 29, 2023: 44 for the month; 193 for the quarter, 763 for the year
None.

Thursday, December 28, 2023: 44 for the month; 193 for the quarter, 763 for the year
39231, conf, Grayson Mill, Reidle 6-3F 3H,

Wednesday, December 27, 2023: 43 for the month; 192 for the quarter, 762 for the year
39648, conf, Grayson Mill, Fleck 150-100-1-12-7H,
39502, conf, Enerplus, Brown Bear 157-99-1-12-5H,

RBN Energy: a look at total shareholder returns for gas-focused and diversified E&Ps.

The end of one year and the start of another provides a perfect opportunity to take stock — in this case, to examine total shareholder returns for the institutional and individual investors holding stock in oil and gas producers. As it turns out, 2023 was a mixed bag, with gas-focused E&Ps generally benefiting from a rebound in gas prices (current and future), oil-focused companies taking a hit, and diversified producers ending up somewhere in between. In today’s RBN blog, we continue our review of E&Ps’ total shareholder returns (TSR) with a look at Gas-Weighted and Diversified E&Ps. 

In Part 1 of this two-part series, we said that E&P shareholder returns went from minimally positive to disastrously negative in the decade preceding 2021, driving all but the most masochistic (or pig-headed) investors out of the industry as share prices plunged more than 90%. Then, the E&P sector swore off its growth-at-all-costs mantra and transitioned to a maintenance capital spending strategy to maximize cash flow to repay debt and reward long-suffering shareholders with dividends and share repurchases. The industry quickly won back investors in 2021-22 as cash flows fueled by higher commodity prices post-COVID sent dividends soaring. As a result, the combination of rising equity prices and higher dividends boosted TSR to record levels.