Do we have a coherent strategy? We are hoping for higher prices to support it. We cannot run 5 rigs next year without adding to debt. So, we will be flat by the end of the year or worse. This will make our challenge and throughout contracts more of a burden. We better pray for prices and/or a leader who knows what he/she is doing.
Strategy for fat cats on 5 getting paid and that's it!
Strategy: Hurricane in Gulf good for stock price
Look at Floyd Wilson after he took Halcon Resources bankrupt and stockholders lost almost all of money.
Disgusting
http://www1.salary.com/William-J-Way-Salary-Bonus-Stock-Options-for-SOUTHWESTERN-ENERGY-CO.html
Probably a bit optimistic at $2.85/MCF at Henry Hub Nymex 2019 as it is now. Also looked at bank pricing poll put out my Macquarie at the sensitivity case they run. Also what about pay cuts for senior management?
I think this hits at the origins of this website --- eventually the money people will ask for a reckoning of the money-- whether debt or equity ... at the moment the only sensible conclusion is at least reduce drilling , maybe 2 rigs and high grade, refinance/ capitalize - though likely hurting stock price and then further reduce g/a costs -- people. That's at least stopping college recruiting ( already stated just interviewing for show) ; early retirement ( stop shareholders paying for charity work) , and likely layoffs- though I would expect more in the normal 15-20%.
15 %layoffs
5% retirement
5% attrition ( and no Back fills)
That would also allow for consolidation into one tower, and improve communication and hopefully reduce costs.
Anyway- that's my view
Agree on well said. But we are in a catch 22. Economics tell us not to drill, but a decline in production also destroys value for shares (not to mention jobs). Must sell something big and/or get bailed out by prices.
A failed strategy and failed leadership!
Well said.Strategy of drilling in low gas price environment does us no good.
The investor presentation represents scenarios at 3/3.5/4 $ gas
The futures markets would say 2.85 for next 2 years ... it's just unlikely for prices to help us ... and I could argue that at today's prices no value in drilling ...
If I were ruthless , I would take what we have -- eliminate another half the staff, stop drilling , generate cash flow and pay share holders that way .
Some of you might have a better idea if locations can be created by operational improvements -- but eventually we are running out of locations
Anyway, there is no discernible strategy , hang on while you need to and move on