They will spend like they have forgotten all about the baggage from bad investments in upstream and high spending in downstream as well. They will act like oil is going to be great for another 1000 years. Instead of planning for the lesser demand coming. They have almost always been bad at forecasting the future.
12 replies (most recent on top)
I double dog dare them to PiP us
Can anyone tell me what was the layoff package in Nov/Dec 2020?
Darren already said no more debt. Also, all the low interest debt we did take on went to pay the dividend.
Seriously, the employees that work for this company are bottom of the barrel. The ones claiming we should take on more needs to be let go! I'd worry about you chances being put on PIP buddy.
I don't think shareholders are going to let another boom/bust cycle occur. They will want some nice payouts for the pain they have endured sticking with O&G, and there are fewer and fewer opportunities to waste money on.
Okay so the point is when oil is up to tops price, the mistakes of the last will be repeated which is paying far too much for upstream assets and not investing in alternative energies to keep up with the coming change. Notice I said change and not trend.
Only the low in self esteem or abused call others id–t.
id–t? I meant $80-90 per barrel which is what is being forecast. And wait and see, they will act like their is no tomorrow and spend spend spend without adapting to the new era. That is why this is a GE.
You can't be serious? This year-end evaluation debate with the SEC is decades old, and the ambulance chasing law firms are a dime a dozen. You say asset A is worth x. I say it is worth y. We are both engineers and have tons of technical and pricing data to back our positions. In the end, we will both be wrong. You think EM is going to lose that argument? All oil companies go through this nonsense and it hardly ever amounts to anything. Now, the XTO assets may turn out to be a lousy investment, but nothing to see here.
Well, sounds like you need to look elsewhere to find your dream company. First, EM has already announced and began implementing capex and opex reductions, along with a $20B asset divestment program, so you are just restating what is already underway, no new ideas. Second, all debt is not created equal. It means nothing whatsoever if you don't know the details of the debt instruments, so foolish to try to compare one year versus another. Is $10G of 2% debt twice as bad as $5G of 6% debt. No. Now is the time to load up on cheap debt. I hope they borrow lots more at record low rates. Everyone should be doing the same in their personal lives. Will be like free money when inflation hits and you can earn 3-4x using someone else's money. Their D/E at about 0.39 in well within norms and will drop with prices increasing.
Will XTO perform well in the Permian you ask? The question should be, will XTO report true #s for the Permian? Will XTO withstand the investigation? Will ExxonMobil be standing after the investigation? Will investors trust ExxonMobil? How far will ExxonMobil’s credit rating fall? Those are the questions you should ask!
No. They will act like oil will be great for a million years!
Nurse, where’s my soup?
We have been borrowing (debt now $70B today vs. $15B in 2015) to pay dividends since 2015 and will continue to do so for the years ahead unless we restrain our OPEX and CAPEX and divest at least $20B in assets as well as shut down non-performing LNG/crude/refineries/terminals/pipelines. Crude may be on the rise, good, but demand is not going to return for years if ever.
Can Woods and his woke, cancel culture, PC European leadership team get this ship righted? Can all the offshoring deliver value to the Corporation? Can Spring ever stop being a PC, identity culture that behaves like Gen Z humans? Will XTO perform well in the Permian? Will Kearl, Brasil or Guyana perform to expectations? Will your managers quit lying to you, quit spying on you? I think not to all of the above. We are doomed unless the entire organization is reorganized to deliver profit and focus on the goods and services we provide as opposed to actively embracing the PC culture that permeates everything and delivers nothing but problems to the bottom line.
"Once oil goes back up"? Demand will go down in the near future? Oh my gosh a company is taking a loan! Stupid f n trolls need to pay attention to reality.