For example, while oil giant Chevron (NYSE: CVX) plans to boost its capital budget by 25% next year to $17 billion, most of that increase is due to inflation and a ramp in lower-carbon investment spending. It trades at a bottom-of-the-barrel valuation compared to its peers (the higher the free cash flow (FCF) yield, the lower the price-to-free-cash-flow ratio): Data source: Marathon Oil Investor Presentation. What's noteworthy is that Diamondback has shifted its capital allocation strategy over the past quarter, paying out a lower variable dividend so it can buy back more of its shares.