I can say that I was a bit surprised by the decision of the company to sell Permian assets, after being in the Permian for 100 years. Permian is suddenly so bad or what is all this really about?
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Freaking awesome. After you’ve been to Pecos!!!
What's wrong with Midland?
The Permian and especially Midland is a paradise. Not sure why anyone would not want to be there or move there.
@Donzinger
I thought you were in prison playing wet nurse?
Company has given up on making money via O&G. We are selling assets and investing in Tesla, Bitcoin, Dogecoin (Doggy Coin), and Gold. What ever is left goes into the Green New Deal. You heard it here first folks.
Companies often perform an asset review and then tweek the portfolio to achieve better overall financial metrics for the company, so that investors find the stock more appealing. Also, management needs to do something to justify their bonuses and keep the working folks on their toes.
The smaller companies with lower overhead and who count every penny, unlike Chevron, will come out with higher profits per barrel than Chevron ever made in these Permian oil fields.
They are selling conventional side that is not going to generate much value. This is normal with any company, they sell the less desirable to invest in more favorable assets or reduce debt. This asset for sale is not the entire Permian nor the unconventional side of, it, it had been on prodution for almost 100 years, so there is not much to squeeze, and it is only good for those companies looking for CO2 injection and other EOR methods to make money.