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Pioneer is not really looking for opportunities..... Pioneer has our number of locations...... We dont need additional acreage and in fact we have over a 100 year inventory.

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Says something about Exxon and the majors buying things.

Not to say PXD won't pick anything up at the right price but just interesting. I know a lot of other companies are on the prowl.

Look at Chevron's balance sheet.

$14.5B cash. All of that is not needed to fund the capex budget and dividend, even with reduced cash flow from the drop in oil.

I expect an acquisition over the next year.

I question whether Exxon is ready to make another big purchase (not financially but organizationally) but they may acquire some assets on the cheap.

BP is a mess. No one is going to buy or merge with them IMO.

XOM should right their wrong and buy EOG. Only issue is they need to buy them and stay out of the way. I don't think they have the ability to cut costs and run efficiently/safely at the same time like EOG does.

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XOM should right their wrong and buy EOG. Only issue is they need to buy them and stay out of the way. I don't think they have the ability to cut costs and run efficiently/safely at the same time like EOG does.

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XOM buying EOG would be value destructive.

Maybe..... Couldn't be worse than what they did with XTO. That's for sure.

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Maybe..... Couldn't be worse than what they did with XTO. That's for sure.

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What happened on the XTO deal? I'm not in O&G....

XOM has left XTO alone for most part. Except from some safety procedures being implemented XTO is being left to do their own thing.

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Maybe..... Couldn't be worse than what they did with XTO. That's for sure.

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I'm sure it could be

Everyone I know that left said they were filling in XOM people left and right and things changed drastically. That and they changed to XOM pay so they lost a lot of good people. Can't imagine they let them operate like an EOG or PXD operates but maybe so.

Couldn't do worse than XTO IMO. EOG has better rocks even if they ran off all the people.

$64.50

Heard through a friend Enbridge had a round of layoffs recently. Not sure if it was all related to pricing right now, but I know they didnt have the best quarter.

Layoff ball is just starting to roll. Q1& 2 are going to be bloody.

Truthfully I never understood why people in the first round of layoffs, who are the worst and usually should have been fired outright, get the best "layoff package". So by the time you are havin to let go people you'd rather keep you aren't giving out much of anything. At least that's my limited experience through 2 previous slow periods with a service company.

Layoffs that are basically early retirement for some are the exception of course. (Even though some of those people should be fired outright too)

Maybe they will have "stealth" layoffs this time. That is firings under the pretense of underperformance.

We call that scapegoating...

Also, $63.44.

Under $60 by year end?

CXO and PXD wow

There is no safe 'buy' price for CXO or PXD right now I don't think...

Later tonight I'm going to calculate the total aggregate loss in market cap for houston oil companies. It'd be interesting to see how many billion we've lose in value

COP just cut their CAPEX budget by 20%

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Look at Chevron's balance sheet.

$14.5B cash. All of that is not needed to fund the capex budget and dividend, even with reduced cash flow from the drop in oil.

I expect an acquisition over the next year.

I question whether Exxon is ready to make another big purchase (not financially but organizationally) but they may acquire some assets on the cheap.

BP is a mess. No one is going to buy or merge with them IMO.

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I mentioned this previously, but where are you getting this? The woodmac "report" that was on page 3 of this thread says "Total, Chevron, and Statoil have the lowest cash flow cover for shareholder distributions among majors" , and goes on to say at $60 Brent the can't cover development and overheads, much less exploration, dividends and buybacks.

WTI at $62.99

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CXO and PXD wow

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Oof.

PXD

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The Original Ag 76 gets a blue star for starting this thread alerting us all to his fear of oil and gas prices collapsing BEFORE the collapse! Old Guys Rule!!! (I am class of "78" and am refered to on Texags as an "old").

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I was born in '78 and I'm referred to as old on texags.

Just curious if we have some buffer from international markets? What are the price tolarences of Russia, Venesula, etc.?

Looks like another ugly day tomorrow

CVX certainly needs more production to come online and to go on a capital diet, but both of those are occurring. Main thing is the two Australia LNG projects needs to be completed. I think negative cash flow has always been part of the plan through 2015, it may just be a bit more extreme than planned. They will need to fund the dividend from their balance sheet.

It's going to get interesting for everyone if (when) we touch $50.

Matter of fact.. I was talkimg to a great friend who is a hedge fund manager around the same time I started this thread. My buddy was in DC working for Commerce during the 80's crash so had no real first hand experience from the "view on ground zero". I was telling him about the scary similarities I was seeing between 82 and today. The "assurances" from our corp geeks about " enough work to last until 87, the realestate boom still in effect even though buyers were becomeing scarce...etc..we've tlaked about all that. Well anyway...our talks got him to start to look at his massive data base and charts etc, he put his "team" on the energy sniffing trail and he has made a TON of money in the last 6 weeks...damn it.....

BTW: He is NOW singing louder than EVER that we are headed into a HARD price collapse in oil and energy stocks that will have a fairly hard and long duration.

Define fairly long and hard. 2 years at <$50? 5+ years at <$50? I am thinking low $50s in early 2014 but some relief from further drops with all the pullback in the US - production will still be high but everyone knows it will drop as rig count declines. Probably take a year to a year and a half for the slowdown to push oil back up into the high $60s, low $70s. Obviously economic growth and any wars on the horizon could change the price very quickly up or down. I don't think we will see $90 for years if demand doesn't pick back up. Anything approaching $90, companies will be drilling like mad with lower service costs.

" long and hard" means that this is not just the usual " adjustment" that most markets see periodically. I think that the fall is just starting and will continue for 12-18 months. It not an overnight thing. Based on 40+ years of going thru these damn things I can say that the recoveries usually take a HELL of a lot longer than the fall. I seems like it takes about 2-3 times longer for a recovery to take hold than the causing collapse. It was well into the 90's before we really exited the horrific mid 80's collapse. Of course the 95 landscape was so completely different thatn the 86 landscape due to massive closings, mergers, reshuffling etc. Damn near half of the GREAT Houston oilfield names from the " golden age" were gone by the 90's.