A Startling Fact About Pipeline PiggingAugust 19, 2020
Oil settles below 5-month highs amid fuel demand worriesAugust 10, 2020
U.S. shale producers Pioneer Natural Resources, Devon pitch plans for variable dividend
Pioneer Natural Resources and Devon Energy Corp plan a variable dividend, executives at the U.S. shale producers said on Wednesday as companies in the battered sector seek ways to reward shareholders after years of poor returns.
The payment could be a new model for a volatile industry out of favor with investors, said Pioneer’s CEO Scott Sheffield. Shares in oil and gas companies slid this year as oil prices crashed, but they underperformed other sectors for a decade even before the Covid-19 pandemic destroyed oil demand.
While Pioneer could start a variable dividend in 2022, Devon’s Chief Financial Officer Jeff Ritenour said it would look to add a variable dividend “as we move through the next couple of years and evaluate market conditions.”
Top U.S. independent ConocoPhillips last week said it would consider a variable dividend or share buybacks on top of its regular dividend, while Concho Resources CEO Timothy Leach said his company would “be well positioned to do something like” a variable dividend.
Meeta develops credible content about various markets based on deep research, opinions from experts and inputs from industry leaders. As the managing editor, she assures that every piece of news and article adds to the knowledge of decision makers. An avid bike rider, Meeta, is a postgraduate from Indian Institute of Journalism and New Media (IIJNM) Bangalore, where her specialization was Business Journalism. She carries experience from mainstream print media including The Times Group and Sakal Media Group.