Investing 101 -- Energy -- Thursday, June 27, 2024

Locator: 48048B.

Hyperscaler drinking game continues. First: GE Vernova CEO  says “hyperscalar” at 7:54 a.m. CDT.

Cost basis: I imagine my cost basis on my energy investments are so close to zero it makes no sense but to leave them alone.

Investing: big investors are "doubling down" on oil and gas stocks. Oilprice. Most recent: Warren Buffett buys more OXY.

RBN Energy: E&Ps sustain sector-leading dividend yields despite lower cash flows.

After thoroughly alienating their investor base over more than two decades of boom-and-bust cycles, U.S. E&Ps won investors back in the early 2020s by radically transforming themselves from high-risk to high-yield vehicles. Fueled by surging crude oil and natural gas prices in 2022, producers generated massive free cash flows — and spectacular shareholder returns that topped 10% during the late-2022 peak. Prices and cash flows subsequently retreated, however, and skeptics worried about the sustainability of producers’ high-return strategy. Would debt repayment, dividends and share buybacks sink? In today’s RBN blog, we‘ll review the Q1 2024 cash allocation of the major U.S. E&Ps with a spotlight on current dividend yields.

From RAWenergy this a.m. Link here. Oh, it links back to RBN Energy. Okay.

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Disclaimer Briefly Reminder

• I am inappropriately exuberant about the US economy and the US market, 
• I am also inappropriately exuberant about all things Apple. 
• See disclaimer. This is not an investment site. 
• Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.
• Reminder: I am inappropriately exuberant about the US economy and the US market, 
• I am also inappropriately exuberant about all things Apple.