Investors are demanding more from oil companies this year: More spending discipline, more cash returns, more details around energy transition strategies. They should add one more thing to the list: More humility.
After an auspicious year, a group of producers tracked by Raymond James reduced the share of production they hedged using derivatives by nearly a half for 2022 compared with this year. No wonder. With oil and natural gas prices recently hitting multiyear highs, this wasn’t a great year for energy companies to lock in the price at which they sold those commodities.
