Will mgmt wait for the spring to perform an additional ROM or increase cuts in the October ROM? What is the % reduction target for the $35 oil case?
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Sometimes its better to keep your mouth shut and let people think you are stupid than to open it and confirm the fact.
Chevron is not cash broke. We have a cash flow problem. Big difference, though still very troubling. MOur balance sheet is still quite good benchmarked against our peers.
Board approval? You know that is just symbolic? What is Chevron going to pay the severance with people? They are cash BROKE. And the cash they do get will go to the dividend and expenses. Lol at the board approved. The board also approved for Watson to blow me.
I recall Ken Derr ordering an across the corporation 10% cut in headcount around 1999.
Severance approved by Board of Directors through 2016.
They are probably waiting until 2016 when the severance program is reduced to nothing and it's cheaper to fire people.
If they are smart, which they are NOT, they will take action now. Implement 30% reduction today, NOW!!!
Not sure which report you saw, but it is possible to be cash neutral down to $20 oil, but that requires cutting all non-discretionary capex (including stopping all phase 4 projects), eliminating the dividend and substantial staff reductions and eliminating 401k matching. It would be incredibly painful but bankruptcy isn't a possibility. It would, however, cost Watson and his management team their jobs and the board would probably being in outside leadership. Honestly, for Chevron long term, it could be a good thing.
Ha I saw that BCG report. DANGER means bankrupt from cash flow!
I imagine the Danger at $45 means the dividend will have to be cut or phase 4 projects (Wheatstone) stopped.
Does anyone know anything new?
If oil dips to $35 NBD. If it stays there will probably be some more adjustments to the current employee population.
The numbers Anonymous141187 quoted are in line with what I saw. I don't know what they look like in the case oil trades where it is now for an extended period.
The cuts we're over 32% at P 52 oil I saw the study. At 45 it said, swear on my heart, DANGER. Danger WTF? So I guess we are in danger. I am 8 years in oil and have much experience outside the the industry. I am interview in now.
Many Fall PDCs were canceled for this ROM. Spring PDCs may also be canceled and replaced by a second ROM if needed. As the ROM process is now in place repeating it should be a simpler exercise than this one and the timing fits.
Speaking from the experiences in the 80's and 90's, get ready for a wild ride. Management will say nothing or flat out lie until the decision is made to dramatically reduce staffing levels. It will be swift and mercilous. If you believe.HR is your friend, you had better wake up!
Things in the energy sector will be getting worse by this fall when many refiners start entering their scheduled maintenance season. This will tend to increase U.S. Crude stockpiles in an already oil glut, pushing the oil of oil downward even more. The turnaround is still not close. Hang in there for more pain and deeper cuts through layoffs.
Not being funny here but they are in danger of not meeting payroll with the xasflow crunch. I predict furloughs. Nobody is doing anything but worrying from what I see.