LOVE THOSE PROCEEDS

摘要

Boy howdy! It's investment time for E&Ps. The boom is on, but it is not a boom in drilling rigs or crazy investments. The only land grab that makes sense now is for snapping up contiguous acreage. This boom is about delivering free cash flow (FCF). During their first-quarter conference calls, E&P companies showed they can deliver FCF and use it wisely-whether to pay down debt, buy back shares or distribute it. They are finally transferring wealth from their coffers to investors' bank accounts, a welcome and necessary outcome of the strategy that is capital discipline.