What’s the sentiment today of investors buying into the E&P space? Capital One Securities senior E&P analyst Phillips Johnston pulls no punches. “Pretty much zero,” he scoffed. “It’s the most hated sector on Wall Street.” It’s a reality U.S. oil and gas producers are finally facing: Public money is gone, and this time it’s not cyclical.

Energy accounts for less than 3% of the S&P 500 today, its lowest weighting in 20 years and a fall from a 13% peak earlier this decade. That number represents all of energy, with E&Ps a minor subset of the whole. Over the past 10 years, the S&P 500 returned 230% while the S&P Oil & Gas E&P index returned negative 70%.

The sector is a capital vortex. And Wall Street is angry at being duped.

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