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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
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.
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 -
"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.
E&P operating costs are falling globally
Woodside’s Senegal project gets government greenlight
That’s it for this week, we’re rooting for (and betting on) LSU - Geaux Tigers