RE:RE:RE:Post by masfortuna Yes the SP will increase as FCF and paybacks increase.
The re-rating (higher PE etc) will occur after multiple quarters of dividends and share buybacks. Many investors still see the O&G industry as being “done” and the current higher oil prices as a last gasp. For these investors the coming higher FCF is at best temporary. This coupled with anti-ESG views is a huge drag on the share price. Eventually the consistent outsized returns will not be able to be ignored and more investors will return to the industry.