The great sell off continues.
13 replies (most recent on top)
It's like they aren't familiar with what base production is, and why it's important. Especially when we aren't willing to spend the money to replace those lost reserves. Just keep reducing our revenue. Bold move, Cotton, let's see if it works out for them.
Risk of nationalization? Then why is COP in South America, do they not remember Venezuela?
Selling high cost, high risk, low margin assets in our current environment is smart. There is no supply and demand changes on the horizon. As Ryan predicted a couple of years back supply will keep prices near $50 for a decade or more. With multiple decade drilling inventory in low risk low cost areas other areas at $50/bbl can't compete. Disposition of areas with high development costs areas and local governments taking 50% or more off the top and risk of nationalization is smart when we have safer places to put our money to work in. Projects in high risk areas requiring hundreds of millions of dollars investment with with years before production begins are dead. Looks at what all the other large oil companies are doing,
Albert Einstein: The definition of insanity is doing the same thing over and over and expecting different results.
sell assets, buy back shares; sell assets, buy back shares; sell assets, buy back shares; sell assets, buy back shares; .....until assets=0
To think that we are still hoping for EF and Alaska to keep us afloat...yikes
- ”this transaction allows us to allocate capital to other projects that we believe will generate the highest long-term value to ConocoPhillips.”
This ought to be interesting. Go grab something to drink, cook up some popcorn and let’s wait to see what happens when our esteemed ELT finally realizes that they’ve told them one heck of a story and that the long-term “value” doesn’t actually exist for at least half of these other projects which require significant amounts of future capital. Smart Growth, Superior Returns, SPIRIT Values. Yeah, ok...
Malaysia next to go.
Only Norway and Canada left in the cupboard. Place your bet please.
The numerator stays the same (HQ cost and Employees) but the denominator keeps getting smaller and smaller ( BU's to allocate the HQ cost out to). All this does is make your cost per BOE even more expensive in a shaky oil price world.
In the absence of an idea sell assets , increase dividends a buy back shares.
Rinse and repeat until $45bn market cap
What's the worst that could happen? Nice cash position, huge synergy savings in the HQ. Prime time takeover target. Thank you very much
Repeat after me " There is no white elephant in the room" Listen to my words and not my actions.
Shedding assets left and right. Smart growth (really?). Superior returns (seriously?). Time to dust off and polish up those resumes kids!
Are we just selling everything off, where does it end?
I'm sure glad this is not a fire sale!!!! Let's see if this will get the stock back to the pre split price! smh