Attracting investors back: What model for US E&Ps?
Even before the latest demand downturn, the US E&Ps were facing the dual challenge of poor returns and investors dissatisfaction with the business model. In this CERAWeek Conversation, Mark Viviano from Kimmeridge Energy Capital Management discuss the need to align management and investors interests to help recapitalize the US oil and gas industry. His argument ids that the business model of shale was based on a premise of resource scarcity, which then drove capital allocation decisions, executive compensation schemes and valuation methodologies He believes that the sector now has to strongly favor returns vs growth, and that re-investments have to be capped in order to reduce the cyclicality of returns, and provide shareholders a horizon for returning capital throughout dividends and buybacks. He remains optimistic that despite the crisis the US shale business is facing right now, future returns can be attractive if the appropriate actions are undertaken by the industry.
In All Strategic Dialogues
Play video Oil Market Scenarios for a post-Pandemic World
Oil Market Scenarios for a post-Pandemic World
(December 8, 2020) Chief economists from international oil companies and the heads of oil market research at OPEC and IHS Markit discuss scenarios and trends for global oil over the next 10 years.
Play video Multiple Dimensions of Energy Transition: India and the world
Multiple Dimensions of Energy Transition: India and the world
(November 10, 2020) IHS Markit Vice Chairman Daniel Yergin, Chief Energy Strategist Atul Arya, and Senior Vice President for Global Energy Carlos Pascual unpack the confluence of tech, geopolitics, and the New Map of international energy.
Play video The Clash of Nations, Energy Politics and a New World Order
The Clash of Nations, Energy Politics and a New World Order
(October 1, 2020) Experts in energy, geopolitics, Asia & the Middle East examine America’s place in the world and the disruptions that will shape the foreign policy agenda of the next U.S. president.
Play video New Map of Energy for India
New Map of Energy for India
(November 12, 2020) In this India Energy Forum session, Rajiv Kumar, Vice Chairman of NITI Aayog, discusses India’s economic recovery and explains government initiatives to strengthen local value chains and innovate in a low-carbon economy.
Play video Managing Disasters: Hurricanes & COVID-19 Collide
Managing Disasters: Hurricanes & COVID-19 Collide
(August 17, 2020) Explore the resiliency of infrastructure against the most powerful force of all: nature. CEOs discuss preparedness, crisis management and recovery strategies to protect and preserve critical energy assets when nature strikes.
Play video Angola’s New Upstream: Increasing Competitiveness, Repositioning for the Future
Angola’s New Upstream: Increasing Competitiveness, Repositioning for the Future
(October 8, 2020) A competitive market for industry capital is challenging Angola to strengthen its value proposition for investors. Top energy officials explore regulatory & fiscal adjustments, new technologies, and a repurposed agenda for Sonangol.