Our miserable poster here told us all that COP was going to tank after the dividend payout today as an example of ELT mismanagement. Didn't happen after-all, and COP continues to outperform our peers.
Time to find something else that can promise doom and gloom.
But for the rest of us, some more evidence that the worst may be behind us.
EOG, Pionner and Concho could drill shale wells for less than $12 MM per well. Why not farm-out undeveloped acreage in Eagle Ford, Bakken &Delaware for $5,000-$10,000 per acre and retain 5-10 percent over-ride. EOG, Pioneer or Concho will drill the wells that apparently we are unwilling to fund since we prefer to buy back stock. The farm-out would provide an immedidiate infusion of cash and provide a production & revenue stream at no CAPEX outlay.
The ELT should require a farm-out evaluation be made. The farm-out scenario would allow for additional down-sizing and associated cost savings.
The purchase of 27 million shares suggests an outlay of approximately $1.2 billion. How many Eagle Ford, Bakken and Delaware shale wells could have been drilled?
At $1.2 MM/well, the $1.2 B would provide funds to drill 100 such wells...100 wells and we elected to buy back stock yielding 2.4 pct pre-tax. Could not the shale opportunities compete for these funds?
OP:
Quarterly dividend is only $0.265 /share or approximately 0.6 percent of current share price. Why would anyone anticipate a measurable movement in stock price one way or the other?
-css:
There are approximately 1.217 billion shares outstanding. The purchase of 27 million shares is equivalent to approximately 2 percent of the outstanding shares. Why would anyone anticipate a measurable movement in stock price one way or the other?
The purchase of 27 million shares is equivalent an outlay of approximately $1billion, again equivalent to approximately 2 percent of current market cap.
Does this company not have a better use for $1 Billion for CAPEX opportunities? CAPEX expenditures for 2017 are estimated to be $4.7 Billion.
Are we CAPEX constrained or do we not have an inventory of commercial viable projects in this price environment? If CAPEX constrained, seems the $1B would be better utilized on development projects. If there are no commercially viable projects in this price environment, why are we selling assets in this environment if there is no need for additional CAPEX for project funding?
Just seems a poor use of $1 billion dollars made available from asset sales in a low commodity price environment. If we are of the opinion that prices will be "lower for longer", then there must be significant right- sizing to take place for a less than $5 billion CAPEX program.
Your stock should outperform if you are buying millions of your own shares. The bad thing is other investors aren't buying, so we are just propping ourselves up indefinitely. The street will hopefully pick up on this some day.
Poster is a moron. Must be a cop manager/supervisor or a long term conoco employee who hs never seen how another e and p company operates
After they bought back 27 million shares you would have thought it would have gotten a little bit of a bump. But nothing.
It sure isn't busting out making me much money buddy, don't drink the COPaid. $44 is pretty pathetic.