The Wall Street Journal reported that energy companies are turning their focus to shareholder returns amid higher oil prices and asset sales. This is triggering a stock buy back wave from some of the largest producers. As WSJ framed the story, many North American energy producers survived the recent oil bust in large part by selling more than $60 billion of new stock and now they’re beginning to buy it back.
Some companies mentioned Pioneer Natural Resources Co. and Anadarko Petroleum Corp., have started the year by initiating or enlarging share-repurchase programs, with others joining this trend.
The buyback is another sign that the recovery is stable and in full force. Oil prices have climbed high enough for these producers to drill profitably and shareholders are urging and demanding that companies focus on the bottom line. Pioneer Natural Resources Co. has climbed back from a 2016 low of $113.14 per share to $179.10 as of writing this.
