Is MC setting PXD up to sell next year or truly right sizing for the assumed longer term lower activity level?
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I do not believe the "incompetent" were taking care of as you say in the last layoff in June. There were some very competent employees let go and some that stayed that should have been let go. In some areas its all about how well you are liked and who has your back. SAD BUT TRUE!
chevron just bought Nobel for $13 B it is a matter of time where most of the midsize companies will be bought PXD will be acquired
M&A right now just does not make sense to me, even down to the very basics of just leasing drillable acreage. How does that play when you don't have the cash flow to drill your own high potential leases. Isn't this the same basic mistake that Chesapeake made in Oklahoma and they made several other large mistakes, buying large amounts and paying a premium for acreage, high annual rental fees; and not having the funds to drill the wells and still paying annual rental on large tracts of undrilled land. All a receipt for failure. If a company just has the uncontrollable urge to buy acreage I would think buying from the banks from companies that have gone BR. I would think right now Pioneer should be in the hunker down mode, get these layoffs behind you rapidly and fairly and then start positioning the company for the new oil paradigm of the 21st century. Lean and mean and factory like drilling and production, all sameness all identical
No E&P is looking at acquisitions right now. The days of gobbling up all the acreage just to have the biggest footprint are gone. It's all about efficiency, given the never to be seen again $100 per bbl. Why would a company need to add hundreds of thousands of acreage when the demand seems to have hit a peak and may never return to the levels of 2019. It may make sense for companies to merge if there is a lot of shared infrastructure in place but not for pure assets.
Great conjecture... stupid
I suspect it is in preparation for a sell of the company, stock price is way down from its high over $200.00. If someone had the coin and made a either friendly or not so friendly premium stock offer, I think Pioneer would be sold, Stockholders would decide not Pioneer. The founder CEO is getting older he has his pot of well earned gold but surely he doesn't want to spend his old age managing the reset of Pioneer 2.0. And the problem Pioneer does not have a deep bench of potential heirs to take the throne. One or two of the VPs packaged in 2019 had potential and came up through the ranks in the field. But they are now gone
I do not believe that would be called a merger. The new company would be called pioneer.
Pioneer Parsley? A merger?
The lay-off is happening because of greed. They didn’t go deep enough with cuts last time and they took care of the incompetent. The glass palace is over the top expensive so that added to the cuts. The money they give is cheaper than being sued for wrong doings and it will shut up the wrong doers!
I don’t think that is the plan but it is never off the table. The lay-off is happening because of Covid and demand has decreased substantially. If they get bought they will be expensive and I don’t see any companies investing in Pioneer. I do however see Pioneer buying a small company or two in the next two years.