Investors will avoid the oil patch, we were told, until they become convinced that EPs are serious about financial discipline. And they did, until they became convinced. Now, they're back—big time. An array of factors, including Russia's invasion of Ukraine, underinvestment in the sector for the past five years and a tilt toward renewables, have propelled demand and, subsequently, price for fossil fuels in 2022, Michael Underhill, co-founder and chief investment officer of Capital Innovations, told Hart Energy. The resulting financial sheet bonanzas have not only allowed companies to return excess cash to shareholders but encouraged investors on the sidelines to join in, pumping up share prices.
展开▼
