http://money.cnn.com/2015/10/14/investing/oil-crash-wall-street-banks-jpmorgan-bank-of-america/index.html
13 replies (most recent on top)
The Venezuelans don't have a pot to piss in. Their economy is shit and so is their government and economy, COP won't be able to collect anything from them.
The ship is sinking folks I wouldn't be surprised if they cut the dividend, watch that stock go well into the 30's.
The more bodies are contractors. ConocoPhillips is pursuing contracting teams for information technology project. The recruiters are calling but I do not care to drive to and from Bartlesville for a contract role with a set end date. Easier to search for a permanent role without the burdens of a dead end contract role.
But you get another round of cuts with any merger/acquisition. You may actually need more bodies for awhile at the beginning of the merger/acquisition, but probably have big cuts afterwards. Would not surprise me if something happened on the merger/acquisition side since it seems like we always try to mask our current issues with some major transaction. Or maybe we can finally collect something from Venezuela for Hamaca and Petrozuata to help keep us going the next couple years.
The reduction in workforce benefits the merger / acquisition efforts. As the realtor told you, clean the house of clutter and pets prior to the open house.
Not sure where you pulled this info out from. Maybe if you combine the debt and dividend. COP pays ~$1.2B in interest expense per year with it's current debt level and only has one bond for $1.25B due in 2016. The dividend is ~$3.6B per year. I am sure the banks would make COP cut it's dividend before filing bankruptcy. Right now the company is operating at a loss, but needs the cash flow from the production to cover costs, capital, interest and dividends.
On the layoff sides, these actually hurt the cash flow position in the short term since you are paying out additional costs for layoffs up front. The only real benefit on the layoffs doesn't come for over a year or so until the company breaks back even on the costs side for all the up front costs. The layoffs only really help on the adjusted earnings side that you report to the street since the costs for the layoffs are removed from the adjusted earnings.
Reduction in salary before third round of layoffs. Then bankruptcy!
Come on, buyout!
COP needs the price of oil to be at a min of $65 so they can even start thinking of getting out of the hole they have dug themselves in. Every time the dividend gets paid out that is $1.2 Billion out of the dollar that the coming is not reinvesting into any money making projects or developments. A sign things are not looking good for COP's future is the change to the board by-laws that took place yesterday. COP will now allow a 3 year shareholder group that owns 3% or more of company to dictate 20% of the board. This is a clear sign that COP does not see the Q3 earning report being a good one and they don't want the share price to drop like a rock. Wish everyone the best.
COP will go bankrupt in less than a year !
First you must determine the peers. One of the issues with the split of the two companies. Neither management nor the analysts can determine the peers. All things being equal, the game ends at some point as the cost of production exceeds the price of oi.
where do you get this info? Is Conoco really in worse shape compared to its peers?
Third round of layoffs coming... Stay tuned!!!!