"Lowest cost, highest margin North American resource-play focused independent"- can I get paid millions to say I want to make money with the assets we have?
Stop acting like resource plays are just a focus, it's all they care about. Might as well call the new conventional business the clearance rack. Spun off downstream, next step: spin off conventional.
Lee has some credibility left to damage?
I've been lurking here for a while. But after reading these comments I just need to say something. I absolutely 100% have to back anyone who points out that our HR VP Deanna Jones is incompetent. She not only lack an empathy gene, whichsometimes works in favor of some companies, but she absolutely has no comprehension about how different Marathon is from Schlumberger. She is not only the most dishonest and potentially harmful member of "Lee's team" but likely may be the single force behind his demise. Every time she opens her mouth she damages Lee's credibility.
I distinctly remember JR poo-pooing hedging as a strategy during one of the Fracas & Excrement meetings right before the start of the slide. He was on the verge of laughter, even. By the next Q we had quietly hedged something like 50KBOEPD. Ladies and gentlemen: your distinguished leadership.
Yes, but you wouldn't be hemorrhaging money right now if you hedge some oil and gas while prices were falling. You might not have a Marathon to come back to.
A bad call about hedging is a poor reason to fire Sult. More lasting damage is being done by Deanna Jones. Sult is at least a solid accountant. Jones is a poor fit and does not comprehend her job, which at times is to talk Lee out of doing what worked in his favor at Exxon. Marathon is a tiny company with what was a very opposite culture from Exxon. It is now in turmoil and shrinking daily, not entirely due to layoffs. With her services company mindset, Jones doesn't comprehend that the Marathon workforce is not disposable. Once the market turns, Marathon will find it much harder to recover from her "premier leadership" than from a decision not to hedge.
I know I'm not the only one, but I fail to see how this reorganization really fixes anything. If we really want to get some change, get rid of our star CFO J.R. He's the idiot who pushed not to hedge when prices were falling. He's a huge reason we were caught with our pants down.
Clearance rack reminds me of the Kmart blue light specials. Maybe Marathon can partner with Kmart to offload these assets? Watch out for falling assets prices! (oops that is Walmart). So Marathon Conventional could be Maramart?
Not sure why you would get rid of EG because its a money maker at the moment.. Noble seems to be content with the current course and playing it safe..
Thats funny, accurate as well, calling the conventional assets the clearance rack. Next up to the plate, Wyoming and EG.
We are laser-focused on the increasing efficiency and our balance sheet. Conventionals can't compete for capital with our world class shale assets. When excluding $20,000+/acre, G&A, interest, and OPEX we can show you that our single well economics will be our growth engine for the future of Marathon. Nevermind that we've been drilling Eagle Ford wells for four years and it's never been cash flow positive and we will exhaust our inventory in 5 years.
Decommissioning Brae is to the tune of $3-4 billion I believe.
Its impossible to be a fully resource play based company... Problem is you cannot get rid of UK even if you tried to give it away for free... (which is what we tried to do when we sold Norway).. Marathon is on the hook for decommissioning those platforms.. Anyone know the current estimates of decommissioning costs? In the billions?.. I'm not sure the resource plays can cover these future costs!
Seems so simple minded for a CEO that pretends to be so much more intelligent than everyone else.