Jump to content

Hey Oil Barons.......


936horn

Recommended Posts

11 minutes ago, Dutchrudder said:

Paywall site.

So who would Exxon want to acquire?

    Jack Williams, a senior vice-president of Exxon, told analysts on a call to discuss the company’s first-quarter earnings that he “would be surprised if over time we did not pick up more Permian acreage”, either through small-scale purchases of assets or a larger acquisition.

His comments show Exxon’s interest in further consolidation in the Permian region, which is at the centre of the takeover battle between Chevron and Occidental Petroleum for control of Anadarko Petroleum. 

Chevron also reported earnings on Friday morning, and on their call with analysts its executives emphasised the merits of their agreed deal with Anadarko, including opportunities for cost savings.

Mr Williams was speaking as Exxon reported a 50 per cent drop in earnings per share for the quarter to 55 cents, well below the average of analysts’ forecasts, as it was hit by “extremely challenging” conditions in its refining and chemicals operations.

The group’s refining operations fell to a $256m loss in the quarter as their margins were crushed by oversupply in world gasoline markets. They also lost the benefit they had gained last year from some very low prices for Canadian crude, caused by a shortage of export pipeline capacity.

In the chemicals division, profits dropped by 49 per cent to $518m, as the wave of investment in new capacity in recent years led to increased supplies and put downward pressure on prices.

The upstream oil and gas production division was more resilient, but profits still fell 18 per cent at $2.88bn, hit by lower prices.

In the Permian Basin, Exxon’s production is booming: it rose 126 per cent from the first quarter of 2018 to reach 226,000 barrels of oil equivalent per day, and is on course to reach the company’s target of 1m boe/d in 2024.

However, Permian production is only about 6 per cent of the global total for Exxon. The group’s worldwide output rose by just 2 per cent in the first quarter to 3.98m boe/d, hit by declines at other fields.

Exxon built its position in the Permian through a series of deals, culminating in the $6.6bn purchase of drilling rights on about 250,000 acres from the Bass family in 2017, but has since then put a brake on acquisitions.

Mr Williams told analysts that Exxon did not need to buy any more assets to achieve its current projections for production growth in the Permian region, but suggested that it was still looking for further deals.

He added that the company was not interested in buying assets that were already in production and generating cash, but was looking for reserves with development potential.
 

Link to comment
Share on other sites

34 minutes ago, Rusty Shackelford said:

These are the levels I was looking at, used 2.40 since it was the lowest near support. 

2.44 support in Nov 2016, and April 2015

2.40 resistance (becomes support) in Jan 2016

It it breaks below 2.40 I will agree with you that it might fall off the cliff, but it hasn't yet.

Yeah, we're using different data.  I get mine from Stockcharts which I believe uses yahoo! data, but beyond that on commodities I'm flying blind.  Yours is probably more accurate.

Link to comment
Share on other sites

12 minutes ago, tucker said:

Given Buffet's big misses on his last few deals, it may be a sign of way overpaying 

I don't doubt it.  CVX will almost certainly let them have it at this juncture.  Plus they get free $$.  

 

Keep an eye on other names now.  

Link to comment
Share on other sites

3 hours ago, tucker said:

Given Buffet's big misses on his last few deals, it may be a sign of way overpaying 

Buffet is getting $10bn in 8% preferred stock plus what essentially amounts to $500mm+ in call options for free.  He'll do just fine on this one.

  • Like 1
Link to comment
Share on other sites

2 hours ago, Llano Estacado said:

Saw this note on Exec & C-level bonuses during the CVX announcement.


https://seekingalpha.com/news/3453048-anadarko-upped-ceos-payout-just-chevron-merger-deal-wsj

Don’t subscribe to WSJ.

These douchebag executives dont even try to hide that fact that they are assfucking their shareholders anymore. 

  • Like 1
Link to comment
Share on other sites

2 hours ago, Blotto said:

These douchebag executives dont even try to hide that fact that they are assfucking their shareholders anymore. 

Yeah, when I saw that I was like how in the hell is this even close to being legal.  Then I remembered, rich people don't have to play by the rules.  Especially corporate executives.

In a similar situation, I avoided a major catastrophe when I shorted the shit out of some student loan public company that was on the ropes at the end of the financial crisis.  Later I saw a headline buried on a website that their execs had modified the change of control clause in their contracts and closed my position immediately for a small loss - something just seemed fishy about the whole deal.  About a week later they announced they were getting bought out for a huge premium.  Disaster averted by pure fucking luck.

Edited by Fudge Nuggets
  • Like 1
Link to comment
Share on other sites

1 hour ago, Goofyboy said:

Define changes, please.

 

Also, stick tanked because Fluor finally booked $35 million screw up on a job.

I bet it isn’t the only project write down. Investors have been patient but most E&C firms have been pushed to grow via M&A or forced to sell themselves due to financial challenges (CB&I). The new CEO will have to give a compelling growth strategy or firms will start circling to buy Fluor. 

Link to comment
Share on other sites

On 5/10/2019 at 11:00 AM, Neonmoon said:

https://www.houstonchronicle.com/business/energy/article/Houston-startup-buys-Pioneer-s-Eagle-Ford-assets-13824874.php

With Pioneer being a pure Permian player now and Chevron looking to acquire. It makes sense. 

The Pioneer CEO basically propositioned Chevron in a recent interview. I expect it to happen. 

Man alive, the Eagle Ford went from the hot play to toxic in a hurry. COP and EOG might be the only big companies down there that like their acreage. 

Link to comment
Share on other sites

1 hour ago, billfromlaketravis said:

The Pioneer CEO basically propositioned Chevron in a recent interview. I expect it to happen. 

Man alive, the Eagle Ford went from the hot play to toxic in a hurry. COP and EOG might be the only big companies down there that like their acreage. 

Some like it. Some don’t. COP, EOG.CHK just bought more EF last year, but Equinor is shopping their position. I think it’s just consolidation from some of the majors. It also depends on takeaway 

Link to comment
Share on other sites

1 minute ago, Neonmoon said:

Some like it. Some don’t. COP, EOG.CHK just bought more EF last year, but Equinor is shopping their position. I think it’s just consolidation from some of the majors. It also depends on takeaway 

I wonder if CHK likes the PRB better than Eagle Ford? I believe they're scheduled to be about $10 million more in Eagle Ford ($525 million) than PRB ($515)would be an interesting conversation for sure. I know some of the consulting firms really like the PRB because it's a stacked play. If they think the Permian has infrastructure issues, wait until they get a load of the PRB. 

Yeah I heard Equinor was shopping their Eagle Ford Position. If I was working at their office in Austin, I'd be looking hard for another job. Do you know if they want to keep their Marcellus and Bakken? 

Link to comment
Share on other sites

47 minutes ago, Neonmoon said:

No idea regarding Equinor. I think CHK prob likes EF more than PRB, but again that’s just from investment. As you said, takeaway is a problem 

I know people want PRB to be the next Permian but seem like a bit of a stretch. 

PRB's problem is that it's a thousand miles in each direction to Chicago and the West Coast. Plus good f***ing luck getting a new pipeline through Eastern Wyoming, Idaho, and Oregon. I think the PRB's best bet is for some variation of the Keystone Pipeline to finally get finished and tie into it in Wyoming. That would get companies into Cushing/The Gulf Coast. 

The oil is there though and it could be a world class field with the proper vision. 

Link to comment
Share on other sites

What is the best way to get into the O&G field without any connections? Who are the biggest recruiters for O&G jobs? Are there jobs available in the DFW area?

What area? If you are talking an engineering firm, probably the best way in is knowing someone. But without experience don’t be expected to be paid a lot at first. With some transferable skills and real word experience (management, procurement, project controls), you might be able to bump up the pay a bit until you get more experience.

Working for an owner is similar.

Working in the oil patch, there are probably others here that can help with that, but I would think entry level out in midland wouldn’t require too much experience, but maybe I am wrong.
  • Like 1
Link to comment
Share on other sites

6 hours ago, Bruh Man said:

What is the best way to get into the O&G field without any connections? Who are the biggest recruiters for O&G jobs? Are there jobs available in the DFW area?

service companies are always hiring

when i graduated college, 3 classmates went into drilling fluids and all 3 are making $500k+ now (20 year career, only one stayed in drilling fluids) 

  • Like 1
Link to comment
Share on other sites

6 hours ago, Bruh Man said:

What is the best way to get into the O&G field without any connections? Who are the biggest recruiters for O&G jobs? Are there jobs available in the DFW area?

Without knowing your professional background, I would advise you to find a company you want to work for and figure out which broker/contractor agency they use. Most companies will only use one, and they like to hire employees from within that contractor pool. My company only uses one broker and several people have been hired within months of starting out as a contractor. There's a guy on my hall that was a contractor for maybe two weeks before they hired him. 

It's much easier to get your foot in the door as a contractor. No insurance or 401k stinks, but you have to start somewhere.

  • Like 1
Link to comment
Share on other sites

7 hours ago, Bruh Man said:

What is the best way to get into the O&G field without any connections? Who are the biggest recruiters for O&G jobs? Are there jobs available in the DFW area?

The best way is to get recruited out of college, but I’m guessing that’s not your path. The second best way is to gain experience. That means go to the field and be a contractor for someone. Anyone. (Knowing someone is really the best but that can be applied to any job really)

The biggest recruiters? Depends on the profession. Geology, Engineering, Supply Chain, Land. It all really depends on the profession. 

Yes there are jobs available in DFW. Those jobs usually require people with experience. 

  • Like 1
Link to comment
Share on other sites

11 hours ago, tx 3 putt said:

service companies are always hiring

when i graduated college, 3 classmates went into drilling fluids and all 3 are making $500k+ now (20 year career, only one stayed in drilling fluids) 

To make $500k in drilling fluids you either need to be a company exec or someone pulling in a high day rate while working 300 days a year.

Link to comment
Share on other sites

14 minutes ago, Patricio Swayze said:


Yeah, that seems kind of crazy. My pops has been on the engineering side now for 45 years and is an exec and doesn’t make that much.

VPs at the top E&C firms make around $400k base

Link to comment
Share on other sites

1 hour ago, Fudge Nuggets said:

To make $500k in drilling fluids you either need to be a company exec or someone pulling in a high day rate while working 300 days a year.

1. Head of drilling for top 5 o/g. Global position. Group of us are going to visit him in the fall as his company is ramping up a rather large international shale play.

2. Drilling fluid exec. His bonuses are unreal, he brings in the big contracts. Look at #1 for his best customer. His top 5 customers are all classmates. Seems like every 3 years he gets a hefty retention bonus, his Rolodex is thick.

3. Went mud engineer, drilling engineer, now owns a very successful service  company. 

 

As for day rates, I have friends making $150/hr working chem plant / refinery outages. 1.5 after 8, all Saturdays are 1.5 and all Sundays are double bubble. Plus a generous per diem. The last outage, traffic was so bad they decided to come in 2 hrs early and stay an extra 2 hours. Pretty much paid to sit around for four hours and get paid $300/hr. 100% contract work but they can make $300k in 6 months. Good gig if you can find it. 

Edited by tx 3 putt
  • Like 1
Link to comment
Share on other sites

1 hour ago, tucker said:

VPs at the top E&C firms make around $400k base

If they’re worth a damn, they’ll have a very aggressive bonus plan. Top talent is hard to find.

Im not worth a damn and my bonus isn’t bad 

Edited by tx 3 putt
Link to comment
Share on other sites

1 hour ago, Patricio Swayze said:


Yeah, that seems kind of crazy. My pops has been on the engineering side now for 45 years and is an exec and doesn’t make that much.

 

1 hour ago, tucker said:

VPs at the top E&C firms make around $400k base

Last week I happen to sit by an interview lunch and the guy was being offered a drilling supervisor type  position for base salary of $325k + bonus plan, which I couldn’t hear. 

Link to comment
Share on other sites

50 minutes ago, tx 3 putt said:

1. Head of drilling for top 5 o/g. Global position. Group of us are going to visit him in the fall as his company is ramping up a rather large international shale play.

2. Drilling fluid exec. His bonuses are unreal, he brings in the big contracts. Look at #1 for his best customer. His top 5 customers are all classmates. Seems like every 3 years he gets a hefty retention bonus, his Rolodex is thick.

3. Went mud engineer, drilling engineer, now owns a very successful service  company. 

 

As for day rates, I have friends making $150/hr working chem plant / refinery outages. 1.5 after 8, all Saturdays are 1.5 and all Sundays are double bubble. Plus a generous per diem. The last outage, traffic was so bad they decided to come in 2 hrs early and stay an extra 2 hours. Pretty much paid to sit around for four hours and get paid $300/hr. 100% contract work but they can make $300k in 6 months. Good gig if you can find it. 

That makes sense.

I know back before the crash, a very good / experienced drilling fluids guy working deepwater in a shithole location could pull in $1,800 / day.  Those rates dropped quite a bit down to around $1,000 - $1,200, but have started to come back ever so slightly.  I think deepwater GOM probably pulled in about the same, maybe even a little bit more.

These examples though are bit like the University of North Carolina back in the 1990's claiming the average salary of their geography majors was around $1MM (thanks to the contract and endorsement deals of one Michael Jordan).

Link to comment
Share on other sites

2 hours ago, Fudge Nuggets said:

To make $500k in drilling fluids you either need to be a company exec or someone pulling in a high day rate while working 300 days a year.

I have a very good buddy who consults wherever oil is drilled, from the Bakken to Kuwait, and he pulls $2000 per day.  He probably works 200 days or so per year.  I have no idea why he still does it.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.



×
×
  • Create New...