Darren SissonsPioneer Natural ResourcesPXDCOMMENTJan 15, 2021
Energy stocks look quite attractive. There may be a bull market for energy. What caused the 2020 sell-off was triggered by the sell off in oil. It was then recognized simultaneously with covid. Without travel and work from home, energy demand fell dramatically. The valuation is quite cheap. He prefers large integrated companies like Shell more. However, if you have aggressive capital, it could be a good bet.
Exxon Mobil is offering 2.3 of its own shares for Pioneer, valuing PXD at $253 per share in a $60 billion all stock deal. Exxon is down somewhat. The energy space is looking good.
He just trimmed Pioneer, which topped out on Sept. 5, its ex-dividend date, but didn't like how it reversed after that. He still owns some Pioneer shares.
Loves the company but he just sold it because it is a prime M&A takeover target. He is overweight energy despite paring this and other energy holdings.
Their report later today will be straightforward. This year, they already said that if oil is around $80 they will pay out $20 in dividends and at $60, will pay $10. Likely, they will pay the former which amounts to about a 10% yield. Not complex. She owns it for the dividend, not the upside.