The only ripe in CO is the joints that u are puffing like there is no tomorrow.
CO was going down when oil was still at $50-$60
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Check the DJ contracts and FT you may own enough critical mass to squeeze the marginal players riding on interruptible out. Daddy Buffet ain’t gonna let this die on the vine. CV19 is going to wreak havoc on the economy so you likely have a Governor willing to change his tune in exchange for a stimulus package on other side. We have at least proven we can spend money. Opens diminishing window to retrieve rights. DJ wins on infrastructure, processing, windshield time, choke control, produced water handling, and people on site. WTX will always be there but the dealing looks ripe in CO
What money? At this point, the best thing Oxy can do is bring costs down to $0 and preserve cash as long as possible, to make Buffet payments, prepare for debt obligations, and hope for a return in prices. That means no more rigs, no more completions, no more exploration, no more land deals, no more non-op approvals. Our current producing wells more than covers our production commitments. Every dollar we're spending on those activities is losing us money at these prices, bringing us closer to large layoffs and an inability to service our debt. We're not going to be able to sell GoM, WES, or anything else at a decent price, so asset sales won't be able to save us. The answer is not to do more activity in any area, but to do less.
Put the money in the DJ?
The market demands a response. If a house is burning you would call the fire department. Someone with intimate knowledge if the floor plan can move the fastest and be most effective. Take every dollar you can muster and dump it into the DJ that is where your best sharp shooters are and best take away and maybe you have a chance of fending off the assault.
So here is what will be funny. After the stimulus is released and markets strengthen some, the OXY stock will also obviously come up naturally. Then all the wonderful thinkers in management will say, “we saved the company by bringing Chazen! Best decision we ever made and that’s why we get paid the big bucks!”.
Just watch ...
Copy that.