Exxon performance in the Permian is just average. The BOD is horrified and considering an exit strategy sooner rather than later so as not to be left holding the bag there. Chevron will be the only major left in the basin.
7 replies (most recent on top)
CVX wants to be the last man standing to capture all the gains
Just think - Chevron could be left "holding the bag" both in heavy oil and uneconomic unconventionals!
@jnl, That Ponzi scheme, as you call it, will turn once again into the goose that laid the golden egg, once the leftist-globalist party are ousted from power and the Biden Admin is neutered. We’ll be seeing an ‘About face’ in just under 12 months. Hint: A 180-degree turnaround after the 2022 midterms. Let Exxon go, Chevron should stay put and reap the rewards to come.
Having a low royalty burden improves your margins - it’s all about margins.
Royalty positions are great, but only if you are drilling and showing top quartile initial rates and 3-year declines.
It’s likely that Exxon figured out the Ponzi Scheme that was happening in unconventional.
The math works if prices always increase and costs go down but if anything else happens it fails just like all the other Ponzi schemes out there.
It’s likely that XOM’s royalty position in the basin is worse than Chevron’s.