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Stock Strategist Industry Reports

What E&Ps Can Learn From Big Tobacco

Here's a playbook for exploration and production companies to restore investor confidence.

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Given the vaporization of tens, if not hundreds, of billions in investor capital over the last decade, it’s understandable that U.S. exploration and production companies are shunned by investors.

Investors think greenhouse gas emissions are a key concern for U.S. E&P companies. Sustainalytics has highlighted carbon emissions as a key factor underpinning its Severe ratings for most of our E&P coverage. In response, U.S. E&Ps have reduced the carbon emissions they can control and focused on flaring efficiency. But they must do more to align with the World Bank’s initiative of zero flaring by 2030.

Stephen Ellis does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.