http://fuelfix.com/blog/2014/11/04/eog-profit-doubles-on-low-cost-wells-even-as-oil-price-falls/

Enron

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Enron

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Enron Oil & Gas

No ****, I think he is claiming that their results are suspect because of ENRON

Do they have an Aggie auditor?

They hedged well for 2014. 2015 will be interesting since they haven't hedged as much.

It helps to have some of the lowest costs to operate compared to your peers too.

Joke fellas, kind of

EOG Resources, Inc. (EOG), formerly Enron Oil & Gas Company, adopted a new name and declared its independence from Enron Corp. Simultaneously, Chairman and Chief Executive Officer Forrest E. Hoglund retired, Mark G. Papa was elected Chairman and Chief Executive Officer and Edmund P. Segner was named President and Chief of Staff of EOG.

Mark Papa put EOG in an excellent spot. What will be interesting to watch with EOG is how things play out in 2015, 2016, and 2017. The new CEO does things much different than Papa - good or bad? Not sure, but hard to believe he will be as solid as Papa. Time will tell.

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Mark Papa put EOG in an excellent spot. What will be interesting to watch with EOG is how things play out in 2015, 2016, and 2017. The new CEO does things much different than Papa - good or bad? Not sure, but hard to believe he will be as solid as Papa. Time will tell.

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Eh, it's not that different. The next CEO may, but Papa did a good job transitioning the company. I would imagine once the Thomases retire, then it will be operated differently.

New style may be better but we won't know for a while - be hard to mess up the momentum EOG has in a short time period.

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Not sure how long you've been there but everyone I talk to says it is night and day. Granted, several of the people I have talked to are people that left EOG within the last year or so because they did not like the changes. They say no one knew what Papa was thinking (very non bureaucratic) and everyone knows what the new CEO is thinking. Take it FWIW. New style may be better but we won't know for a while - be hard to mess up the momentum EOG has in a short time period.

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It's also a much bigger company than when Papa took over. It has to be operated differently. That plus Bill Thomas being a geologist vs Papa being a drilling guy means some differences in what they do, but they haven't been drastic since Papa's last years vs Thomas' first few.

I'm not disagreeing totally, things are different but they've had to be as they've grown. I just don't see a huge change happening until Bill and Gary Thomas retire. They along with Papa are still "old EOG".

Yeah - aggressive geologist vs MBA engineer will likely end up with quite different strategies. Just speculating. Imagine it will be fine! Great assets.

i believe Helmerich&Payne has the lowest daily rate of any of the major contractors. Will this decrease in price make them more attractive as a driller?

"Restructuring" currently ongoing at my company, major subsea services and hardware provider.

My company is slowing operations to only drill wells required to hold leases. We have the cash to continue development at our current pace, with current commodity and service prices, through the end of 2015, but our margins aren't where we want them to be since service prices haven't decreased with the drop in commodity prices. Our plan is to pick back up once service prices come back in line. I know another west Texas operator is planning to lay down 7 of their 21 Hz rigs as well. I think the service companies are about to get squeezed pretty hard.

Plenty of mid level operators expanding ops in the Eaglefor & Woodbine still.

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i believe Helmerich&Payne has the lowest daily rate of any of the major contractors. Will this decrease in price make them more attractive as a driller?

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My experience has been the total opposite.

Disclaimer: Haven't read the whole thread (its now 6 pages long), but I wanted to weigh in on the "glut" of oil that people claim is out there...

There isn't a glut of oil in the US. Many market analysts point to the weekly crude inventory number and the recent builds to say that we are swimming in oil. This just isn't true. Recent inventory build is a result of 2 things, refinery maintenance and crude pipeline logistics line fill. Much of the recent inventory build is actually crude that is now "trapped" in the logistics of crude transportation. Recent large pipeline line fill (Flanagan south, Seaway parallel, Line 9, etc) are literally millions of BBls of crude that will forever be put into "inventory" until the line is decommissioned and drained. Add all the other logistics projects on the gulf coast that have come online over the past 1-2 years and its a significant amount. (For example, Cushings has about 70MM BBls of storage capacity, but its minimum "working" level is around 15-20MM BBls). The normal "working" inventory level of crude in the US has forever increased driving up the appearance of an oil glut, but its just not there.

As refineries come back online, watch that inventory level drop rather quickly. Refined product demand is there, and as the CEO of Marathon reported just last night, its going up. Look at the drop in finished product inventories over the past several weeks as an indication.

So how does a retail investor make money on that?

Continental is Scrapping its Hedges

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Continental is Scrapping its Hedges

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Holy Crap, dude just pushed all in.

That's a bold move.

Because I don't work for them, I love it. If I did work for them, I would **** a brick.

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Continental is Scrapping its Hedges

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Holy Crap, dude just pushed all in.

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He's going to lose half the company in his divorce regardless...maybe he's decided to go double or nothing knowing he could get some satisfaction from either outcome.

LOL, I just put in an order for 400 shares of CLR before that story came out. It filled at $51

It may be a good thing that I didn't put my whole position on.

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Continental is Scrapping its Hedges

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Holy Crap, dude just pushed all in.

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He's going to lose half the company in his divorce regardless...maybe he's decided to go double or nothing knowing he could get some satisfaction from either outcome.

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That's exactly what I was thinking. Dude probably has a good amount of cash squirrled away somewhere untouchable, figures he'll run the ship into the ground and give his wife nothing, or double up and be the same.

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Continental is Scrapping its Hedges

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Holy Crap, dude just pushed all in.

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He's going to lose half the company in his divorce regardless...maybe he's decided to go double or nothing knowing he could get some satisfaction from either outcome.

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That's exactly what I was thinking. Dude probably has a good amount of cash squirrled away somewhere untouchable, figures he'll run the ship into the ground and give his wife nothing, or double up and be the same.

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That's a nice story but I would hope a CEO of a publicly traded company doesn't have that sort of decision making process and power. Surely this decision had to be approved by the board of directors...

On one hand, I don't understand why you would hedge production if you're just going to sell them off when they would benefit you most. On the other hand, if he feels we're at the bottom, it's smart to sell them off and take a profit assuming they're in the money. If I was a shareholder, I wouldn't be happy about the move because it's putting the company in the speculation business rather than focusing on E&P. If they're such good spec traders, they can make a lot more money in that business with a lot less capital versus drilling oil wells.

As far as oil price, I'm a little bearish, but I can't see this being any worse than '08-'09. I also don't believe Aramco thinks they're going to gain market share long term by not cutting production. I think their decision making is based on factors much closer to home than the U.S.

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On one hand, I don't understand why you would hedge production if you're just going to sell them off when they would benefit you most. On the other hand, if he feels we're at the bottom, it's smart to sell them off and take a profit assuming they're in the money. If I was a shareholder, I wouldn't be happy about the move because it's putting the company in the speculation business rather than focusing on E&P. If they're such good spec traders, they can make a lot more money in that business with a lot less capital versus drilling oil wells.

As far as oil price, I'm a little bearish, but I can't see this being any worse than '08-'09. I also don't believe Aramco thinks they're going to gain market share long term by not cutting production. I think their decision making is based on factors much closer to home than the U.S.

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Good God, in '08-09 oil got down to $36/bbl correct? I really freaking hope it doesn't get worse than that.

A brief dip to $36 is a lot better than the OP's prediction of a repeat of '81-'99.

As a small E&P company, I would welcome a repeat of '08-'09. When rig counts hit bottom, it's a good time for cheap drilling. It also wipes out most of the incompetents.

I agree with HH and am buying in the money call options of CLR right here.

Remember when Aubrey McClendon liquidated CHK's gas hedges? How'd that work out?

After thinking of CHK and SD, I'd by leary of the boys from Oklahoma.

Maybe all those don't do meth posters in OKC are on to something....

He either has a very very good Economic analysis team ( and we should all go crazy long), or hes giving his ex-wife a middle finger, and saying come get it... one big dumpster fire

We shall see...50 Jan $52.50 calls @ $3.70

Nice buy Crossbow