Thread regarding Concho Resources Inc. layoffs

Where did it all go wrong for us?

Spent 7 years at Concho in NM, best job I ever had In Terms of pay and benefits. Made it to cop but after a bit had a chance at a smaller private company and took it.

Where did it all go wrong for us?
My opinion the buyout of RSP, paid high premium for them and not sure we got the return from that and the failure of the dominator project doomed us. I think leach plan was to consolidate the Permian and be the leading company but a bad deal and a disaster in the dominator, the name alone seems arrogant. We got big and d-mb, those projects have been done before and the results were not good why we did it I have no idea it was a huge risk. Then lower oil prices our fate was sealed, leach had to sell and seems he’s running his plan with ConocoPhillips but little smarter buying up the Permian for cheaper prices now.

We lost a good company in concho though in the process, we lost benefits, we lost pto, we lost stock, had to pay insurance premiums.

I guess I’m still bitter about it, I enjoyed working there and didn’t want to work for someone else. We were such a smart and prideful company, how we blew it that bad boggles my mind.

Curious what some others have to say about it, surely leach didn’t want to go out the way it did. Hope we’ve all landed on our feet somewhere even if it’s cop, which seems like a decent outfit, but it will never be concho in its prime or anywhere close I feel.

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Post ID: @OP+1d2shjyt

4 replies (most recent on top)

RSP was a gigantic mistake.

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Post ID: @29kbm+1d2shjyt

Concho will acquire 92,000 net acres of top-tier Permian acreage, augmenting its existing 550,000 net acres. Each company’s position spans both the Midland and Delaware basins. RSP Permian averaged 55.3 mboe/d of production in the Permian in 2017; Concho's average 2017 annual output was 192.6 mboe/d.

Andy McConn, research analyst at Wood Mackenzie, said: "An expectation to realize new efficiencies was key to Concho's rationale in acquiring RSP. But realizing efficiencies to the extent that Concho estimates (over $2 billion) will be challenging for multiple reasons.

"RSP was already a lean business. Its Delaware position is not contiguous with Concho's. Concho's operational prowess (e.g., high-ranking well performance) could add value to RSP's position. But RSP already operated its position with comparable skill.

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Post ID: @3wkm+1d2shjyt

Concho had $3.9 billion in long-term debt at the end of June 2020, and has not posted an annual profit since 2018. Its second quarter loss was $435 million, wider than a loss of $97 million a year earlier.

Concho bought RSP in 2018. D-mb Deal by Leach, nobody to blame but him on that one. Dominator not sure who's brain fa-t that was.

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Post ID: @3qxr+1d2shjyt

Led by a bunch of Texas A&M Aggies. Shocked it lasted that long.

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Post ID: @3evc+1d2shjyt

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