Oil dropped by 25%. A few of us "Minors" (Apache, Marathon, Continental, etc.) comfortably doubled that loss. When oil rebounds, how will these companies instill enough market confidence to recoup what was lost beyond the price of crude?
I think it is time to get used to sub $20 Apache price for years to come (if they don't get sold or fold). What do y'all think?
Top dozen or so will walk with millions. It’s beyond repair and they know it.
Equity will be wiped out entirely and debtors will take a severe haircut. Apache will not last long enough for the price of oil and credit markets to float its boat. Real companies like Exxon and Chevron will buy the assets at dirt cheap prices.
Game over, man, game over.
That's kind of what I wondered.
Now to see how many more of us Onshore personnel get the axe.
The US shall gas business rely mainly on Saud Arabia and Russia to keep the price of the WTI above $40 in order to survive. Now the has to reduce their cost and reduce their US production and compensate it with their offshore/international assets.
Poison pill of $9B debt
Still $13B plus to buy APA. Assets of APACHE are probably okay for $30ish
$20s a problem for everybody including Saudi’s and Russians