Pioneer - Parsley tango, good or bad?
12 replies (most recent on top)
Hope pxd folks are ready for the low return Delaware basin and 16 hour days.
Appears more bad luck is coming in spades for the short term; but I don't think anyone is surprised at the increase M&A in the Permian Basin Shale Players. I have to admit that I was caught off-guard with the Parsley M&A, and I am neutral to its effects on the balance sheet. Bloomberg released a article on the deal , Pioneer paid a one Billion dollar premium for the 3.5 billion dollar Parsley Energy, article says the combination will save 250-300 million a year, Pioneer will have a 40% increase in daily production, and possibly a profit in the 1st Qtr. 2021. Now for the mechanics of combining two companies, there is much redundancy in positions in HR, Land, Accounting, Facilities, Environmental and Middle Management (Managers and Directors). Those are the departments that will suffer a headcount cut around 300 people between now and the end of the 1st Qtr. 2021. Both companies are much more lean that they were 18 months ago, but they will become even more learner to wring out the projected 250 million in combination savings. Field operations will be impacted to a lesser degree because Pioneer has JOA on many wells and Pioneer already operated them. My heart and my profound respect goes out to the readers of this LAYOFF Blog, it is not going to be a good Christmas at the Pioneer House this year. With change hopefully will come new leadership at the top
Game over
this is only good for the son. does nothing really for daddy to retire.
stupid combination. Really does nothing. Will be in the same predicament with more debt. Parsley has the same amount of debt as us and a fraction of the mkt cap. STUPID!!!
Run off all Aggies. They are incompetent! And 1-2 Red Raiders also
Remember a lot of Parsley’s employees are ex Pioneer. I wonder how they will feel about leaving Austin and being reunited with their old company. Awkward at best I’m guessing
Mostly good. Should keep the Exxon’s of the world at bay for a while.
Do you think this will finally help us reach our million in ten goal? :-p
Lol as if pioneer wasn’t run into the ground years ago. Just like every independent.
So many room for activities!!!!
Yes so talented they can come and run pioneer into the ground too.
It takes care of the succession problem at Pioneer. Many talented executives at PE.