Oil prices may remain elevated until 2027
ExxonMobil CEO warns that the market is not fully recognizing the supply disruption from the Middle East conflict.
The conflict’s impact on energy markets could take a long time to normalize.
Devon Energy and Diamondback Energy are leveraged to oil prices, with free cash flow yields projected to increase with rising WTI prices, such as 15% at $90 WTI and 21% at $110 WTI.
A 22% increase in oil prices improves Devon’s free cash flow yield by 40%.