Does anyone know what kind of reduction in staff would be needed to sustain the company with oil at $50 - $55 after Denbury's hedging ends? 10%? 30%? Any guesses?
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I believe Denbury will cut additional 10% by the end of the year. Our business model can not sustain an oil price below $70.
Denbury needs between $70 and $73 oil price to survive.
I do not think we can survive at $50? I think that things start to make sense at $68+ for us. This is what I've seen so far. Keep in mind that our costs go up at an annual clip of 4 to 5 percent, so it's likely that you need to add a buck to that number every year. My 2 cents.