US shale producers keep eyes on returns, even as inflation bites

DENVER: Top US shale oil producers say they remain laser focused on shareholder returns, limiting production expenditures largely to offset higher costs for equipment, supplies and services.

The decision likely will hold down oil output increases while benefiting shareholders receiving higher payouts through dividends and share repurchases with US crude prices above $95 per barrel.

Devon Energy this week raised its capital spending budget about 6 percent to between $2.2 billion to $2.24 billion, in part due to inflationary pressures.