Material concerns about hydraulic fracturing companies like Pioneer Natural Resources should ease in the coming years despite prominent investor David Einhorn's "valid points" about the industry's weaknesses, one oil and gas analyst said Monday.
Einhorn, founder of Greenlight Capital, on Monday criticized Pioneer's cash burn and perceived lack of growth. After a speech in which he called it the "motherfracker" and slammed its business model, the company's stock ended about 2 percent lower.
"A lot of companies in the sector certainly have a hard time making returns when you have a sudden reversal in commodity prices like we've had over the last nine months here," said Leo Mariani, oil and gas exploration and production research analyst at RBC Capital Research, in an interview on CNBC's "Power Lunch."
"I think you will see capital directed toward more profitable areas in a low-price environment," Mariani added.