Strategic options for Fayetteville just sounds like sell the Fayetteville. Seemed like a poor disguise for that.
Organizational changes to reduce costs just sounds like layoffs. I’ve been on the train that layoffs won’t happen, but this worries me. I believe there are far too many managers and there is a lot of fat that can be cut their. I hope those are some of the changes he is referring to.
“Return capital to shareholders”...as in a dividend...?
Any other thoughts?
"Southwestern Energy plans to prioritize 2018 spending on the Appalachian Basin, where the company intends to commence operation of four rigs from the beginning of the year and use three completion crews in Southwest Appalachia and two rigs and two completion crews in Northeast Appalachia." So 7 rigs total...4 drilling with 3 completion rigs. NE Appalachia 2 drilling rigs and 2 completion rigs. SW Appalachia ???. Read this several times. How many rigs? Staff needed?
Consulting firm will have a field day everywhere
They won’t have earned their money if less than 15% cuts ...
El Chapo would certainly approve.
Pot stock is about to surge. Maybe SWN can diversify with pot. Who knows . . . with the right people doing the right things . . .
Time for all of the "supervisors" or "Foreman's" with no direct reports to go. Consulting firm is going to have a field day in Conway and Damascus!
Dily Dily Silly Billy
We’re pretty much last in revenue per employee. You’ve got to fix either the numerator or denominator in that and the easier one is certainly the number of employees.
Woops..Typo SWn close to 1500 employees
RRC 762 employees SWN close to 1300
Total brick value = $6.90
Cheers!
'Bite
Wonder how much my bricks will be worth when the company goes under?
My Tiwi is saying aggressive selling.
Just remember guys, no matter how bad it gets, as long as you maintain three points of contact while you're getting wrecked, you will be safe!
Good luck with “The Bobs”.....
”What would you say... you do here?”
“ Well just a second there, professor. We uh, we fixed the glitch. So he won’t be receiving a paycheck anymore, so it will just work itself out naturally”
https://www.platts.com/latest-news/natural-gas/houston/southwestern-energy-to-sell-fayetteville-shale-21281045
Yup, it's official
Yes they’re selling Fayetteville. Yes layoffs are coming. They’re bringing in consultants to help determine how to reduce costs and they will give a layoff head count recommendation by discipline. Layoffs will be company wide and no one is necessarily safe. They will most likely cut a lot of support staff like accountants, BIS, HR, etc...people that are easily disposable and replaceable. They will not relocate headquarters to Appalachia. Most likely will consolidate to one building and the other tower will go dark. Time to update our resumes...
We can’t pay dividends or buyback stock! We are prohibited from doing so. Poor credit companies are blocked by their banks from using $$ how they want. We may be able to carve out some small meaningless amount through future negotiations with our bank, but it won’t be much and we have no negotiation leverage with the bank. Relevant excerpt from our bank agreement below. Translation = no dividends and no cash for share buybacks.
“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interests in the Borrower or any Restricted Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Borrower or any Restricted Subsidiary.
Dilly dilly, Billy Billy.
Lolz. The bad call was falling for said employee's trolling post. SWN up 6.9% tomorrow!!
Last nite a SWn employee posted "Stock will surge to $6.90 after tomorrow's announcement." Woops..bad call. Sale Fayetteville (good luck with that), then payoff all or part of debt secured by it, layoffs (consolidate into 1 office), then best move ..move big office to Appalachia area where remaining assets are.
More laser focus, more strategic cohorting. More “fancy buzzwords I learned in business school”. Time to pivot and strengthen another bridge.
BS. Can’t pay a dividend or buyback stock without giving something to banks.
Lots of words out of Way ....but you hit nail on the head. Fancy speak talk for Sale Fayetteville, layoffs and pay down/off debt secured by Fayetteville. Next..relocate company out of Houston and consolidate. They won't EVER PAY A DIVIDEND THOUGH.