Higher Returns and Lower Carbon: Can Energy Companies Have It All?

Throughout the up-cycle, North American energy companies accumulated substantial cash reserves, enabling them to pursue growth strategies through consolidation, strengthen their balance sheets, and generously reward shareholders.

As the sector transitions into the mid-cycle, lower crude prices are impacting revenue. However, profitability remains resilient, driven by expanded market shares, increased production, and cost reductions.

Ongoing geopolitical tensions, an uncertain economic growth trajectory, and the risk of oversupply continue to pose challenges to energy companies’ margins.

Nevertheless, the energy sector continues to prioritize shareholder rewards, with the majority of upstream and integrated companies expected to increase their regular dividends while also complementing returns with share buybacks.

Join us for an engaging discussion with experts from our Dividend Forecasting, Commodity Insights, and S&P Ratings as we explore the following key topics:

• Energy transition trends: Examining the pace and challenges of the energy transition and the latest low-carbon investment trends.
• Total shareholder return trends: An analysis of how the surge in shareholder returns during the up-cycle is shaping expectations for the years ahead.
• Capital allocation policies: How do upstream companies adjust capital priorities in a lower cash flow environment with regard to debt, capex, M&A, buybacks, and dividends?
• Rating trends: A look at historical and current credit ratings and the key factors that could impact rating deterioration.