“Two ways. Gradually, then suddenly.”
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Easy, borrow more than you can payback! Production does not cover expenses. COP is not the company it was as integrated oil company. It is not operating like an independent oil company should as most employees and management have no knowledge on how to operate as an independent oil company.
The link below tells a good story for 2016.
http://seekingalpha.com/article/3808306-conocophillips-year-ahead?li_source=LI&li_medium=liftigniter-widget
Note more layoff are coming.
Tapping into credit facilities to pay the dividend.
Fairly easy. Go into Deepwater without deep pockets and drill several 100 - 350 mm USD plus dry holes, then make hundreds of million dollar payouts for not using drilling services / rigs.