I got 10% last year. Bonus we just received, for 2022 performance, was around 150% of our target.

Have a few months until we do raises for this year.

Don't know if this was posted.

https://www.wsj.com/articles/chesapeake-to-sell-shale-oil-assets-to-chemical-maker-ineos-for-1-4-billion-d137b78a

BiochemAg97 said:

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Skillet Shot said:

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What are the O&G salary raises looking like these days? Specifically for public companies in technical/engineering positions. I thought it would be higher with record profits and inflation, but most still got the same 3% this year.

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In theory, record profits should be shared with employees through bonuses rather than raises. Raises increase future costs and would make layoffs in the next downturn bigger.

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I agree with this reasoning most years. but the past few years have seen record inflation. I was hoping the huge company profits would be used in part to give employees raises commiserate with the COLA. If cost of living truly increased 8.7%, which is what social security is going by, then employees are netting less with a 3% raise YOY. Ultimately, I understand people are worth what a company is willing to pay them.

They would rather keep as much as that expense in the variable comp bucket

Pioneer to buy Range?

https://www.bloomberg.com/news/articles/2023-02-24/pioneer-natural-resources-said-to-consider-buying-explorer-range

Ag CPA said:

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Pioneer to buy Range?

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Interesting. Trying to be opportunistic?

Equities? Corp. M&A? A&D? All of the above?

Wow. Wish they would have just bought FANG….

There were three separate fires in three different oil refineries owned by the same company, Pemex. All in one day.

What is going on???pic.twitter.com/4KJ55ARd49

— Sara Gonzales (@SaraGonzalesTX) February 24, 2023

That's intense

Cartels?

doubtful since one of the incidents was in deer park.

pemex has never had a great safety record

PXD put out a statement saying the RRC acquisition isn't happening.

Gas public equities are very overvalued at current strip. Need less oil and gas independents. Combine and lay down rigs

Cyp0111 said:

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Gas public equities are very overvalued at current strip. Need less oil and gas independents. Combine and lay down rigs

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Pretty interesting hearing the power trip of service companies. Lots are publicly saying they'll lay down rigs/equipment before dropping prices. Better be careful what they wish for.

Service company is a terrible business model. It's always a zero with enough time

Anyone here work at Hess? Eyeing a role there and curious how the culture is

GGoodVibez said:

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Equities? Corp. M&A? A&D? All of the above?

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A&D. Acquire assets from small and large independents. Buying reserves currently > than drilling for them.

Dill - I have not been a Hess employee, but I did work in-house for a year with them when I was with SLB.

I found the culture to be very top-down, old school and stuffy. That's how Mr. Hess likes it as I understand. But hey if the position looks good check it out.

Thanks for the insight, they seem somewhat old school

gigem1223 said:

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htxag09 said:

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Cyp0111 said:

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Gas public equities are very overvalued at current strip. Need less oil and gas independents. Combine and lay down rigs

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Pretty interesting hearing the power trip of service companies. Lots are publicly saying they'll lay down rigs/equipment before dropping prices. Better be careful what they wish for.

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Can you blame them? Operators are the ones with record high stock prices, not the service companies.

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Eh, that's a popular talking point but not every operator has record high stock prices. It also has a lot to do with wells already drilled and now producing. Forward looking, it doesn't make a lot of sense to continue drilling and completing wells at 2022 service prices if commodity prices are 20-70% lower. Especially when those providers' quality has gone down and inefficiencies are up (broadly speaking).

If they think it's better for their business to lay employees off and park equipment vs lowering prices a few percent more power to them. Nobody thinks prices are going to go back to 2020/2021 levels. But it's just as silly to expect to maintain pricing from 100% utilization levels of 2022 when crews are being let go and actively seeking work regularly.

If they think operators are bluffing and just waiting to see who breaks first, again, more power to them. But I think we all know, especially in gas heavy plays, what that will mean right now.

There is a reason this was the first sentence of a market update article I just received:

Quote:

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The US onshore rig count posted its steepest weekly fall since mid-2020

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The operators are definitely not bluffing. That's a pretty delusional take if they have it.

Agreed

I think most service companies have paused spending capital, or they should be. Other than committed orders for rigs or frac spreads etc, I don't see service companies thinking this is a game of chicken with operators. Everyone has their investors.

To be clear, I obviously don't think service companies should work at a loss or break even. They're a business and have to make a profit.

But acting like pricing from mid last year is barely making a profit is disingenuous at best. Every index was at record highs. Utilizations was 95+%.

And, no, I don't think they're playing a game of chicken or bluffing. Sorry for not being clear. I absolutely do think their execs publicly stating they'll lay down crews before lowering rates is pandering and bluffing, though.

We've already seen it. I've seen panels of drilling execs say this. At the same time these exact same companies are quoting spot day rates 15+% lower then they were last year. Completions providers, including frac companies, are actively calling us with price drops.

So, seems a few are being stubborn and some of the most publicly stubborn seem to be active in gassier plays. Saying things like we won't move equipment unless we get what we were getting before it was laid down. A drop in rates does not equal drop your price so you're barely breaking even. Look at these companies q4 reports……

Part of it is also that the service companies are likely better maintaining their rates in oil plays or at least moving gas crews to oil plays.