Investors are looking for which independents will offer the best dividend payouts

US Shale

1 June 2021

Shareholders set to soak up excess US cash flow

The domestic shale sector is generating considerable returns, with many operators planning to increase dividends

The US shale patch is poised to generate billions of dollars in free cash flow (FCF) this year, boosted by a rebounding WTI and restrained capex. And with much of the sector still guiding flat production growth, investors are eyeing which independents will offer the best dividend payouts. Slashing debt is the immediate priority for many following the heavy financial toll of Covid-19. Among the most debt-loaded, Houston-based producer Occidental Petroleum aims to use most of its excess near-term cash flow to pay down its mountain of debt, maintaining only a base dividend. “Firms that can will aim to deliver a portion of their free cash flow to shareholders, so high commodity price

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