Rinse and repeat every 4-5 years when you cycle mgmt teams

Could not agree more with your statement.

Mckinsey did this exact thing with us and it was a complete sham.

Chesapeake is essentially doing a slow motion Chapter 7.

It's going to be chopped up into pieces and sold off. It might take until end of 2021. There won't be anything left when they are finished.

Expect the Power River Basin to go first, probably in a month.

The larger acreage blocks like Eagleford might be chopped up into bite sized pieces to facilitate sales.

birdman said:

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Chesapeake is essentially doing a slow motion Chapter 7.

It's going to be chopped up into pieces and sold off. It might take until end of 2021. There won't be anything left when they are finished.

Expect the Power River Basin to go first, probably in a month.

The larger acreage blocks like Eagleford might be chopped up into bite sized pieces to facilitate sales.

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That makes sense. I could them retaining the Eagleford / Eaglebine as the new CHK, but everything else will have to be gone.

Makes sense. Also, curious if the corp campus in Nichols Hills is leased or company owned.

Matador putting on some huge producers into $40/bbl oil on that acreage it paid $100k/acre for in 2018. Yawn.

pretty sure they own their campus and possibly still own some acreage around the campus.

https://oklahoman.com/article/5539175/chesapeake-energy-sells-properties-surrounding-campus

topher06 said:

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Matador putting on some huge producers into $40/bbl oil on that acreage it paid $100k/acre for in 2018. Yawn.

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Comical. No one gives a damn about well results anymore. Let's see the balance sheet at next quarter's results and we'll talk.

Old guard dies hard

For those of you active on LinkedIn and following David Ramsden-Wood.... he was banned/restricted from LinkedIn. He's got handful of good articles on the industry IMO, some of his stuff is meh.

https://hottakeoftheday.com/category/hottakeoftheday/

WTF did he do to get banned?

Cyp0111 said:

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That guy got lucky on an exit. His analysis is rather basic.

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Analysis is very basic but I think it provides non industry folks basic insights.

Gig-Em2003 said:

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SMOG is a joke. And so is his love for Oxy/Vicki. Makes me discount everything else he says.

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Gig-Em2003 said:

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SMOG is a joke. And so is his love for Oxy/Vicki. Makes me discount everything else he says.

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This and more this. After made the case for CDEV I stopped paying attention.

Houston, you have commerical real estate problem too. Hospitality and Malls/fringe retail is a big dumpster fire. Office with near term roll or existing vacancy only attracts opportunistic buyers at low/aggressive pricing. Multifamily is tbd; but a lot of supply to absorb depending on submarket. Even red hot industrial in most every other major city is seeing less demand and is oversupplied. I don't expect Houston values to come back to normal until 2022. First industrial/multifamily, then long term leased office, then hotel when group business and leisure picks back up post vaccine, and I'm afraid a lot of retail is permanently impaired. I wouldn't touch Houston real estate right now unless you can steal something and wait a few years. A ton of head winds.

AustinAg008 said:

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topher06 said:

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Matador putting on some huge producers into $40/bbl oil on that acreage it paid $100k/acre for in 2018. Yawn.

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Comical. No one gives a damn about well results anymore. Let's see the balance sheet at next quarter's results and we'll talk.

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In fairness, I would do whatever I could to try to semi-justify paying that ridiculous value per acre once that is a sunk cost.

What's Karnes county acreage going for now?

RSP715 said:

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Houston, you have commerical real estate problem too. Hospitality and Malls/fringe retail is a big dumpster fire. Office with near term roll or existing vacancy only attracts opportunistic buyers at low/aggressive pricing. Multifamily is tbd; but a lot of supply to absorb depending on submarket. Even red hot industrial in most every other major city is seeing less demand and is oversupplied. I don't expect Houston values to come back to normal until 2022. First industrial/multifamily, then long term leased office, then hotel when group business and leisure picks back up post vaccine, and I'm afraid a lot of retail is permanently impaired. I wouldn't touch Houston real estate right now unless you can steal something and wait a few years. A ton of head winds.

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Wouldn't touch commercial only?

Or residential as well?

RSP715 said:

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Houston, you have commerical real estate problem too. Hospitality and Malls/fringe retail is a big dumpster fire. Office with near term roll or existing vacancy only attracts opportunistic buyers at low/aggressive pricing. Multifamily is tbd; but a lot of supply to absorb depending on submarket. Even red hot industrial in most every other major city is seeing less demand and is oversupplied. I don't expect Houston values to come back to normal until 2022. First industrial/multifamily, then long term leased office, then hotel when group business and leisure picks back up post vaccine, and I'm afraid a lot of retail is permanently impaired. I wouldn't touch Houston real estate right now unless you can steal something and wait a few years. A ton of head winds.

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Don't all cities have this problem right now? Who wants office space when companies are pushing back to January 2021 or even July 2021, while realizing that permanent office space may not be as necessary as once thought. I understand that this would also be bad for oil/gas, but commercial real estate is in trouble well outside of Houston (as an oil/gas city).

I'm all for talking property, but it should probably have it's own thread.

Houston no matter what we say is still driven by the energy sector with a lot of offshoots and the med center as a standalone.

Office space for energy complex is likely to be permanently impaired. Houston has had trouble attracting diversified businesses similar to what you see in Dallas.

Other cities have issues with office, retail and hospitality. Industrial and Multi family are still on fire; perhaps hotter than pre covid; particularly industrial. I'll let yall get back to the meat and potatoes of O&G talk. Good luck.

New article updating speculation on Shell plans for restructuring.

Quote:

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Royal Dutch Shell is looking to slash up to 40% off the cost of producing oil and gas in a major drive to save cash so it can overhaul its business and focus more on renewable energy and power markets, sources told Reuters.

...

Shell now wants to focus its oil and gas production on a few key hubs, including the Gulf of Mexico, Nigeria and the North Sea, the sources said.

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Here's the full article link:


https://www.reuters.com/article/us-shell-costs-exclusive-idUSKCN26C0GI

Fun times in the oil and gas business....

Cyp0111 said:

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Houston no matter what we say is still driven by the energy sector with a lot of offshoots and the med center as a standalone.

Office space for energy complex is likely to be permanently impaired. Houston has had trouble attracting diversified businesses similar to what you see in Dallas.

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I wouldn't even say the medical center is a standalone. OG employee healthcare access represent a huge part of their premium network. Donations from OG based foundations also represent a huge chunk of endowments.

The only truly diversified industry in Houston are the remains of TI and Hewlett-Packard which has moved out to the Woodlands

yep. going to be an interesting next few months once the details come out.

for now we seem poised to stay in the onshore shales business, especially since we just went through a 30-40% staff reduction, but who knows.

Have a question and this thread seems more suited than any other. For you guys operating on BLM...are you painting the enclosures of VFDs, ROCs, etc. when installing? I get differing opinions depending on the party you ask.

No, not electrical equipment enclosures. Typically only the electrical rack steel and canopy is painted.

CaptnCarl said:

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No, not electrical equipment enclosures. Typically only the electrical rack steel and canopy is painted.

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Thanks. That seems to be the consensus outside of one engineer I work with.

I'm going to assume this is for a pump package and user name checks out.

Yeah, pipeline pump VFDs and LACT flow computers specifically on this one. I'm used to vessels, pump skids, and fabbed equipment being painted Shale Green, Desert Tan, etc. Electrical enclosures was a new one for me though.

Ah, very familiar with that setup. Especially the viking gear pumps on the LACT.