Thread regarding ConocoPhillips layoffs

Collateral Damage

Sadly, it was decided that I was no longer a necessary part of ConocoPhillips last September after many years of loyal service. I receive a decent exit package which has given me some time to start a side career in online writing. But more importantly I've been able to get past the anger and now I see the larger picture of what the company is trying to do.

Nobody's denying that ConocoPhillips has done an impressive job in turning the company around, but what the market seems to be missing is that the turnaround isn't over. Things are likely to get even better for Conoco, as exemplified by an exchange between analyst Doug Leggate of Bank of America Merrill Lynch and Al Hirshberg, executive vice president of production, drilling, and projects.

Hirshberg: Well, no, we're not done and we're never done. ... We're still planning to hit our original OpEx target $5.7 billion, and so we've done that by shaving about $0.25 a barrel off our unit operating cost. But, we -- as an example of one of the kinds of things we've been doing as we continue to focus on our cost -- even as oil prices have come back up, we recently had a reorganization in our Houston Center and our Lower 48 organization and the increased productivity and organizational effectiveness that we've had there has allowed us to to reduce our Houston staffing by about 10% this year... . We expect that that effort alone will allow us to decrease our Lower 48 G&A cost by about $0.30 a barrel next year. So, we're continuing to work away on it, even [though] higher prices are back, so we can quit focusing on that.

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| 2151 views | | 3 replies (last November 5, 2018) | Reply
Post ID: @OP+VYrWDYc

3 replies (most recent on top)

Yeah they should have done this all at the split, but no we got caught with our pants down. The amount of debt that COP piled up shows the leadership was asleep at the sails and how inefficiently we were run. We have gotten better, but they still haven’t implemented all the ECO recommendations fully, so we are still bloated. I think they did this to roll them out yearly with layoffs so they can have something to say to the analysts about how we are always reducing costs. Once again employees pay the price for poor management.

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Post ID: @1nfg+VYrWDYc

Anyone want to post the OpEx/BOE of AH’s severance package? Or the increased salary OpEx/BOE of the promotions for the two remaining EVP’s?

These guys are playing hypocritical games, talking in these calls about reducing costs from asset sales from actions they should have taken years ago.

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Post ID: @1kgk+VYrWDYc

The types of savings that Hirshberg is describing may not sound like much -- $0.25 per barrel here, $0.30 per barrel there -- but considering the company pumps more than 400 million BOE per year, even tiny incremental changes like these can add up to massive cost savings, which the company can then pass on to investors.

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Post ID: @rwb+VYrWDYc

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