Clay was only worried about numero uno. He got the CEO and literally gave up everything else. Once the deal is done, expect him to check out and not make any tough decisions while letting the new exec team of 5 Coterra people and 3 Devon people figure out the future of the company. Pretty incredible to have the advantage of being the larger company and give up everything.
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@1b1 False, layoffs in 2020.
@1b1 also though total BOEs are close, that’s largely due to massive gas wells in Marcellus. When you look at the last file 10ks, Devon operates over twice as many wells and almost twice as many rigs and they operate in an extra 2 basins and an entire midstream business. Take that as a function of their G&A spend and Devon operates wells at $63k of G&A /well vs $113k per well at coterra, and $25k of G&A/rig vs $29k/rig at.
It’s comparing apples and oranges to look at just head count and not relative to actually operating activities or product mix of the assets. To be clear there are other labor costs outside of G&A, but that’s the point.
@1b1 Coterra outsources several accounting functions that Devon has in house
@wj CTRA doesn't outsource back office- their accounting, HR, IT, and commerical/ marketing are all in house, with nearly all of them in Houston. My understanding is those are the most commonly outsourced departments. CTRA operates similar to how Cimarex operated- lean. From what I've heard from legacy Cimarex people, they only had 1 round of layoffs in their company history, and that was like 6 months before their merger with Cabot was announced. Do the math on that.
I have heard Devon hires up when prices are high, then lays off when then drop- ie, 2014, 2017, 2020. I'm sure there are WARN act filings for those.
@ea tell me you don’t understand outsourcing vs in sourcing without telling me.
@j4 - he is a perfect fit for dvn. All they do is buy companies and run them into the ground. Then, buy another. Dvns ego(employees) is what has them in this situation. It’s actually funny.
@ea Coterra has half the employees? That explains the extra $200/ft it takes them to make a Delaware well.
@OP clay only cares about clay! Have you ever noticed how much he talks about himself in meetings and townhall? He cares about no one but himself.
@ay Coterra has half the employees and almost the same production. Of course they’ll
Keep the more productive staff in Houston. Doing more with less is the way Coterra operates.
54/46 valuation and 6/5 board member split in favor of Devon, but Corterra is dictating all the terms “to get the deal done”. WILD. Watch, as turn over happens in OKC they will backfill in Houston. Slowly migrate it all to Houston. Vacate the tower in 5 years.
Other than the glutton of staff dvn has on the payroll. #payrollbandits
Both companies are the same size