The Generalists...
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“We’ve been telling generalists in the financial community that you’re going to get a payday for investing in this great renaissance” - Matt Gallagher, Parsley CEO
SHALE PR.
Statements can be taken out of context - so take any criticism from us, on the above quote, with a grain of salt.
We have nothing in particular against Matt Gallagher or Parsley, for that matter.
But when you’re explicitly addressing generalists, you’re implicitly not addressing sector specialists…
That’s not a good look.
On a related note, Scott Sheffield did an interview with CNBC at the GS Energy Conference in Miami.
Part of his pitch, in our eyes, could be criticized - betting on E&Ps, because he expects oil prices to rise.
Sheffield may be right, but…
…in the context of 2019 - you might as well have bought WTI futures 12 months out - that was a relatively better trade than long E&Ps.
If the bet is long crude.
We root for people making money investing in E&Ps. But we also appreciate a good PR / IR effort.
Smart investors can read through poor messaging.
There are good economic reasons to invest in good Shale E&Ps.
And when all is said and done, Parsley & Pioneer will likely be two of the best.
But the financial messaging needs to improve -
LAYOFFS.
The Houston Chronicle is reporting that Oxy announced a round of layoffs, related to the Anadarko acquisition.
"While these (voluntary) programs have been successful and contributed significantly to our goals, we have determined that additional staff reductions are necessary" Vicki Hollub
Layoffs suck - to anyone affected, we wish the best of luck.
It looks like Texas & Colorado employees will bear the brunt of it.
Apache also announced a large round of layoffs, shuttering its San Antonio office.
~275 people are expected to be affected.
At the end of the day, Apache’s outstanding Suriname discovery doesn’t help the economics of the Alpine High play.
At least for employees w/ shares, there is the consolation that the Suriname well hit BIG -
OTHER NEWS.
E&P operating costs are falling globally
Woodside’s Senegal project gets government greenlight
BP is selling a few North Sea assets
We’ll be following the BBC’s Iran coverage this weekend
That’s it for this week, we’re rooting for (and betting on) LSU - Geaux Tigers