Truist Securities Managing Director, Neal Dingmann, discusses why the energy sector will remain competitive.
You can watch the entire interview here.
00:23: Why energy will continue to be a better sector
00:29: What makes the sector 'superior'
NEAL DINGMANN: Prices go up-- can go up $10 or $20. Prices could go down these days $10 or $20. And the priorities remain the same. It's, number one, protect that balance sheet. And of course, it's stellar for Chevron and Exxon. Number two, continue to have at least stable growth. They have that. And then, number three, look at the shareholder return. And that's where these companies now are able to step up. And we're seeing that.
So, to me, I think why this group still is going to be one of the better sectors out there is, when you look-- I mean, even now, you look at Chevron. They pay over almost a 4% yield. And they're going to be, as I said-- you mentioned having a buyback that's three times higher than what it was last year. So as such, you're going to be receiving back, as an investor, almost 50% of your free cash flow, which, to me, is still superior versus any other sector.