175 days ago • Posted by Charles-Henry Monchau

Free Cash Flow Yield on Oil Exploration & Production stocks is at 10%

Even though the oil sector has rebounded well off the lows, oil doesn’t need to rally meaningfully higher from here in order for E&Ps to keep climbing. It stands at 10% FCF yield for next year (~2x the broader market) with WTI Oil at $45- source: Morgan Stanley, www.zerohedge.com 

FCF Yield on E&P stocks based on various Oil assumptions