Dave was quoted as saying ... "DOH"
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Dave telling all he knows? Shouldn't take long
Nothing in press releases about further layoffs. Capital budget is slim. Very little for international. Almost nothing for operated assets in Marcellus. G&A is too high. What will happen to the very large Falklands team now that the rig contract has been terminated? What to do with Cameroon and those who support it? NRFPT Dave soon starts telling all he knows on the earnings broadcast.
They would NEVER take a cut. If they really wanted things to work out, they could have not taken a bonus (or even take 1/2 a bonus) this year and last year.....
What if Noble asked employees to take cuts? Would the majority be open to that is management took equal or greater cuts?
With you spelling it out like that. You're right I suppose. It's either slow down or buy back percentages. Noble doesn't have the capacity to fund it at larger shares.
Except for BP, most of our GOM partners could not fund a nice lunch. Activity will slow down.
Will not take that rig all year to P&A those 2 wells. Appraisal wells are still moving forward. It takes 3 years plus for Deepwater discoveries to come online. I doubt they stop funding them because of current prices. The ROR is pretty high I've read in the GOM.
There is really NO WAY this company can make. $9 billion in debt... $30 oil. Annual interest payments of $450 million. They will have to make substantial cuts or sell assets. They have managed themselves into a corner... now hoping and praying for higher prices that aren't coming. Not a good place to be! That's a shame.
I wouldn't hang your hat on OPEC getting its act together. That's not going to happen. Infighting, cheating on quotas... We have seen all of this before. Check the 1990's. Prices didn't recover for 15 years. We are in the same prediciment now. We will not see $50 oil until 2020.
P&A work in the gulf will continue. I expect that new development will be delayed as long as possible -- unless it can be completed at a bargain. If you look at the capital budget, you will see where Noble will spend its money for exploration and development. At some point, the Saudis will have to cut production or their OPEC buddies will revolt. I do agree with the previous poster's views about overstaffing in those service groups.
Doesn't the GOM have a handful of projects they're working on? Gunflint is supposed to come online sometime this year. There's still Katmai, Fandango and Silvergate, right? Or did they scrap those? The drilling rig is on contract for over a year. Surely it's being used for something.
If no announcement by Tuesday, then you should read the press release on Wednesday and listen to the earnings call. Before the call, you can pull the 10K of Noble's website and check to see if there is a new charge for restructuring. In this price environment, cutbacks are inevitable, but maybe this can be done through attrition. But, doubtful. The big exploration program in Falklands will stop soon, and there will be no more big international exploration programs for several years. The GOM programs will go online, and there will be no big GOM projects for several years. Noble's international business is shrinking fast except for Israel, which has its own bloated HQ staff. Plus, even Not Ready for Prime Time Dave should be smart enough not to spend tens of billions Noble does not have on a LNG/CNG program in Israel based only on Netanyahu's latest statements. Marcellus is not economic at this time, the Rosetta fiasco will soon be incorporated into Noble's systems, and drilling in DJ will slow down to what is necessary to hold acreage and to maintain reservoir efficiency. So, after letting go the ops folks go, Noble will add lawyers, bring on an army of financial analysts to tell us that prices are down & therefore profits are down, and of course, there will be additional HR staff to do -- well Noble HR staff don't do a damn thing but Noble always keeps plenty of them on hand to do nothing.