Pioneer CEO says the oil company will keep returning most of its cash flow to investors

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Investing Club: Pioneer CEO says oil company to continue returning most of its cash to investors

Pioneer Natural Resources CEO Scott Sheffield said the oil company plans to continue returning most of its cash back to shareholders, noting the "growth days of the industry are over." That was just one of the takeaways from Sheffield's wide-ranging interview with CNBC's Jim Cramer on Wednesday. Sheffield, who founded Pioneer 25 years ago, is coming off a great quarter in which the Club holding beat on both the top and bottom lines.

Pioneer's declared quarterly dividend payout of $8.57 per share equals a roughly 15% yield, based on the stock's closing price Tuesday. "We have to deliver free cash flow. We have to return it to the shareholders, so I think the growth days are over for the industry," Sheffield said. "Permian is still growing. ... It's most of the growth in U.S. oil production.

 

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