The OXY-Anadarko combined work force is approximately: 15,000 employees
The OXY-Anadarko combined net production is approximately: 1.4 MMBOEPD
For comparison:
ConocoPhillips net production is approximately: 1.3 MMBOEPD
ConocoPhillips workforce is approximately: 10,900 employees
Get the picture? Looking at 1/3 reduction in the OXY-Anadarko combined workforce
Originally posted by @10qTczD7-1xxc.
BOEPD/employee obviously has not impact on profits... waste of time calculating that ratio...
Here are some 2018 profit margins for you:
OXY:
Net Revenue = $17.824 billion
Net Income = $4.131 billion
Profit Margin = 23%
EOG:
Net Revenue = $17.275 billion
Net Income = $3.419 billion
Profit Margin = 20%
COP:
Net Revenue = $38.727 billion
Net Income = $6.257 billion
Profit Margin = 16%
APC:
Net Revenue = $13.070 billion
Net Income = $0.752 billion
Profit Margin = 6%
Now can you guess which company out of these four was more profitable in 2018?
How about earnings/employee?
If China stops or even significantly reduces purchases of American oil, the layoffs across the industry will be major. Oil prices will crater by 20% or more. Don't think the current trade war cant affect us all. Oxy /Anadarko employees are in a bad spot because of the merger but even worse because of the highly probable upcoming oil market disruptions. Oxy will be in a critical state by fall 2021. Cuts will be more like 50% as Oxy is sold off piece by piece until its completely gone by fall 2023.
Possible the Oxy number of 11,000 includes employees and contractors. Anadarko is heavy on contractors as well. Probably = to the employee number and then some.
I agree the metric being used is a bad one. I think a better one is looking at the ROCE (13% OXY vs 6.3% APC).
https://simplywall.st/stocks/us/energy/nyse-apc/anadarko-petroleum/news/heres-why-anadarko-petroleum-corporations-nyseapc-returns-on-capital-matters-so-much/
https://simplywall.st/stocks/us/energy/nyse-oxy/occidental-petroleum/news/a-close-look-at-occidental-petroleum-corporations-nyseoxy-13-roce/
BOEPD/employee is the worst metric I ever heard of
Missing numbers for nested contractors and not sure where one can find for completing the comparison.
Source?
Seems OXY (prior to the Anadarko purchase) is considerably over-staffed based on a BOEPD/Employee metric.
EOG:
Production: 0.7 MMBOEPD (2018 Annual Report)
Employees: 2800
BOEPD/Employee: 250
OXY (prior to Anadarko purchase):
Production: 0.7 MMBOEPD (2018 Annual Report)
Employees: 11,000 (including 3,000 OXYChem)
BOEPD/Employee: 88 ( 8,000 employees excluding the 3,000 OXY Chem employees)
BOEPD/Employee: 64 (11,000 employees including the 3,000 OXY Chem employees)
Anadarko (prior to sale to OXY):
Production: 0.7 MMBOEPD (2018 Annual Report)
Employees: 4,700
BOEPD/Employee: 149
For comparison:
ConocoPhillips:
Production: 1.3 MMBOED (2018 Annual Report)
Employees: 10,900
BOEPD/Employee: 119
It is interesting to see EOG at 2800 employees on a 750MBOEPD production base. This puts them at 270 BOEPD per employee, or around half of the pro-forma OXY/Anadarko.