The first bullet in Lee's response to the findings of the employee survey noted widespread questioning of the company strategy. Relying on high cost resource plays while selling cash generating assets seems counter intuitive. Without any exploration activities we have bought into all of our resource plays at a high price.
With oil heading back down, is there anything I am missing that doesn't make this strategy seem highly questionable?
Blew the deal already, move on to latest failure.
The answer is simple. Our peers are a group of E&P companies. They have an EXPLORATION Department. Lee has been Hell bent to fire / sever / lay off all our geologists and geophysicists that there is no one left to look for new resources. Any idea what the 75 TCF gas find in the Permian will do for Apache? For starters, they can sell their rights to lesser valued acreage to wannabes, like MRO, for an order of magnitude more than they paid, and develop a state of the art mega field on our nickel.
This is an average of $47,000/ acre if we make this purchase. After spending $4.5+billion on Eagle Ford and much more on development the past 5 years without generating positive cash flow, this deal seems like a continuation of failed strategy. What am I missing?
this doesn't answer your question but here it is anyway...
http://www.bloomberg.com/news/articles/2016-09-15/noble-marathon-said-to-weigh-bids-for-permian-s-silver-hill
Noble Energy Inc. and Marathon Oil Corp. are weighing bids for Silver Hill Energy Partners, a Permian Basin explorer that could fetch more than $2 billion in a sale, according to people familiar with the matter.