Fitch: - The unprecedented level of shareholder activism seen across the energy space has increased the tail risk of future unexpected shareholder-friendly actions for credit in the space, according to Fitch Ratings.
Activist campaigns and/or proxy-related issues have flared up widely across the energy sector this year at several key names including Hess, Nabors, Transocean, Chesapeake, and Occidental Petroleum. The net result of these campaigns has been a wave of changes on the corporate governance, financial, and operational levels.
... Financial changes such as new shareholder-friendly distributions include new or expanded buyback programs and new or expanded dividend payouts while operational changes include accelerated restructuring plans and asset sales.
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