Lots of chatter about another reduction coming. With pending divestitures and the continued commodity price downturn, seems to be rumbling of another shakeup. Keep selling assets, acquire nothing and issue more stock to help pay for debt. These options are never going to vest. It was a great way to make you feel like you are getting a bonus without ever having to pay.
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Culture training anyone? lol
The increased rig activity isn't being driven by demand. It's merely a reaction to the price rebound from last year's low point. Drillers are gambling prices have stabilized and they're hoping the added production from new wells will increase their cash flow and provide the appearance of a return to profitability. That gamble may not pay off. All those new rigs are surging supply into a lack luster market. More supply without a significant increase in demand will only result in another price correction. If you don't think this is true take a look at oil prices and supply/demand curves from the last 40 years. Oil markets saw similar price swings every 12-24 months in the 80s and 90s. It wasn't until demand finally started dominating the market that prices began a sustained surge and that was in the context of a collapse in Soviet production and an explosion in Chinese demand. We're in a completely different world today. As for the Saudis: don't confuse their governments budgeting priorities with Aramco's profitability. Aramco, unlike CHK and the other shale drillers, is extremely profitable and will continue to be so at significantly lower prices. If it gets back to a prolonged price war they will win.
Reduction coming up? It's going on now without anyone paying attention. Very few jobs are being refilled when someone leaves. Add in the pieces that have been sold and I bet our headcount is down 10 or 20 percent versus this time last year.
But connecting the dots showed us everything is awesome!
You are crazy doug just said chk is all good now. We can all relax!!!
Swirlie
Lindsay area is being sold. Very reliable source.
Drink up little one drink up.
"Commodity price downturn?" Get the facts before you post something foolish. Commodity price has recovered and will continue to rise, evidenced by a steep and continued growth in active rigs. We are not like OPEC who relies on oil revenues to maintain civility. We are independent and diversed, it's why we are not only here but still able to stay above cash flow neutral.
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