Big layoffs announce by numerous Houston Energy companies. Even though they are saying we are at the bottom of the cycle adjustment need to be made to survive there. Price recovery is expected to be very slow.
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Safe to say there will never be a Walker Tower. Complete 180 from Hackett. Maybe they will name one of the broken sh--ters after him.
Cash losses and job instability will continue for some time. The fundamental oversupply issue hasn't gone away, plus there are still record inventories in storage. Add to that every time oil prices trend upward the producers lock in some new source of financing, surge production and drive the price back down. Now HAL and SLB just stated they are trying to claw back some of their earlier pricing concessions, if successful APC's costs and losses will rise accordingly. This downturn will continue until the excesses in the system have been exhausted and demand finally becomes the driving factor again. That's the only thing that will make price increases sustainable and restore job security. Until then save your pennies and hold on, it's going to be a bumpy ride.
APC will say oil is trending up. Meanwhile APC is cash-starving and becoming skeletal. Al will say no job cuts are planned. Btw Weatherfords symbol is WFT. "WTF" is what APC employees have been saying every day for the last 5 months
Q2 results for APC will be another money loosing quarter for sure. Their debt will increase and add to the existing $18.9B. Expect more divestitures to keep the company afloat. More layoffs for sure. So Big AL: Are your remaining employees in a "warm and cozy" place?
Calling 'bottom of the cycle' is probably premature, though that's what HAL did in their Q2 conference call.
WTI peaked around $51 on 2016.06.09 and is now around $43.50, on a downward trend.
Look at the big service companies on this board (HAL, SLB, BHI, WTF). They are all in bad shape and have not reached the 'bottom of the cycle' yet, with more layoffs ongoing.
Any bets on whether APC will use the same 'bottom of the cycle' story to soften the impact of the Q2 results in their next call on 07.27?