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Oilfield guys... y’all hangin in there?

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    I'd bet that most of that soon to be scrapped equip. has been running 24/7 for the last couple of years, fracking gear gets used and abused, doesn't have the lifespan most would think.

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      Looks like a quite a few are going to be cutting back.



      Chesapeake Energy Corp. collapsed to a 20-year low Wednesday, one day after the shale gas driller warned it may not be able to outlast low fuel prices and issued a “going concern” notice.

      Shares fell as much as 24 percent intraday to their lowest since 1999. The stock also briefly dipped below the $1/share mark, and Wall Street isn’t optimistic on Chesapeake’s future.

      “While we don’t expect this move to come as a surprise given balance sheet issues, the going concern warning in the most recent 10-Q highlighted a declining leverage covenant that may be difficult [to] overcome in our view,” Tudor Pickering Holt & Co. said. The Houston-based energy investment bank on Wednesday downgraded its stock recommendation to a sell from hold.

      Chesapeake’s Haynesville shale asset is the most likely candidate for a sale, though “production (and value) is declining by the day as the asset has entered base decline,” Tudor analyst Sameer Panjwani wrote in a note to clients.

      Meanwhile, Chesapeake’s $1.3 billion of 8 percent senior unsecured bonds maturing in 2025 dropped 3.5 cents to 60.5 cents on the dollar, Trace prices show. The bonds are trading at a record low.

      Sanford C Bernstein is also bearish on Chesapeake’s survival prospects. Chesapeake could look to tap its revolver, or engage in more debt-for-equity transactions, but “neither of these options give us comfort about the prospect of the stock over the next 12 months,” analyst Bob Brackett said in a note. Bernstein cuts its price target to 50 cents from $1.25 per share, reiterating an underperform recommendation.

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        Originally posted by boh347 View Post
        Looks like a quite a few are going to be cutting back.
        Oxy is expected to cut spending by at least 40%. Not surprised though considering they got in over their heads by acquiring Anadarko. Several others expect no slow down in their operation and actually will be picking up a little more. Basically those bad with money are in a bind and those who are good with money will run business as usual

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          I was at Halliburton San Antonio yard yesterday and they are steady. Cant say that for some of the small companies, seems like every week more layoffs and or shutdowns in those places. I think a lot of it is pizz poor budgeting and accounting. I often wonder if some of them know the difference between profit and loss.

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            Originally posted by Radar View Post
            I was at Halliburton San Antonio yard yesterday and they are steady. Cant say that for some of the small companies, seems like every week more layoffs and or shutdowns in those places. I think a lot of it is pizz poor budgeting and accounting. I often wonder if some of them know the difference between profit and loss.
            Looking bad around here for the smaller guys. My business has slowed to almost nothing. All my work comes from smaller guys now, for a while I was getting Baker and Weatherford work ( secondhand ) but that has been gone for a while now.

            I certainly cant argue against it being pizz poor budgeting, but I know in my case when you have the business you gotta spend the money to get it done. Then it dries up and you are stuck with whatever is in AR to try to survive till it comes back. If it doesnt come back you are screwed. Since it never really came back ( or barely did ) cash is running short. As I have said before, at least on the manufacturing side the money isnt near as good as many believe.

            Honestly, I have been looking at another business to go into. Prospects dont look good long term and my belief that providing lower costs and faster turnaround has led to very little gain in business. Just cant generate new customers for some reason.

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              Originally posted by miket View Post
              Looking bad around here for the smaller guys. My business has slowed to almost nothing. All my work comes from smaller guys now, for a while I was getting Baker and Weatherford work ( secondhand ) but that has been gone for a while now.

              I certainly cant argue against it being pizz poor budgeting, but I know in my case when you have the business you gotta spend the money to get it done. Then it dries up and you are stuck with whatever is in AR to try to survive till it comes back. If it doesnt come back you are screwed. Since it never really came back ( or barely did ) cash is running short. As I have said before, at least on the manufacturing side the money isnt near as good as many believe.

              Honestly, I have been looking at another business to go into. Prospects dont look good long term and my belief that providing lower costs and faster turnaround has led to very little gain in business. Just cant generate new customers for some reason.

              This. After 24 years in the patch I can see the writing on the wall. I don't see another long term boom anytime in the expanded future. Looks like small short term spikes in activity will be the norm. With drastic fatal lows for smaller companies. I believe the big guys will survive but at a really scaled down work force and really streamlined budgets.

              I myself would like to get out and find something more steady in my later years. I'm riding it out as far as it will carry me but if something more stable and competitive in pay comes along I'm ready to kelly down this b....

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                Don't get to fatalistic folks, I remember $6 Oil back in the 80's everybody just knew we were all gonna be out of a job and it wasn't ever coming back. I don't know when, where, or how but something will come along!

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                  Their also wasn't a big push for alternative greener energy like there is in the present. In 2000 to about 2008 you could almost step from rig to rig from McCook to Laredo. Now there are no rigs, deteriorating compressor stations and hundreds of thousands of acres covered in wind mills.

                  Hell even some of the bigger company's like Shell and BP are gradually starting to shift green. I don't see a complete phasing out fossil fuels but do see a big scale down in exploration on both land and sea.

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                    Oilfield guys... y’all hangin in there?

                    I see things a little different. The big companies have to answer to shareholders constantly. Shareholders that are just people wanting growth on their investments. Nothing else. They don’t care about technology or the industry, they just want growth.

                    Like you said mike, NONE of your work is coming from baker anymore. It’s coming from the smaller guys. The large companies, especially on the service side are in full panic mode about dropping revenue and excessive inventory. They all have a ton of dead weight that really adds very little to the bottom line. Then they have to explain the reason for stagnation and reduced revenue to Wall Street every quarter. Investors aren’t happy.

                    I believe Investors in the public sector are simply choosing to no longer invest in large public service companies. Private investment money knows you can still turn a profit. My opinion is that the big companies are going to start falling apart. You already see it with weatherford. Schlumberger has been and continues to sell off enormous segments of their Company to try and stop the bleeding. Is slb going to go bankrupt? probably not. But they’re going to have to either get lean, or else they will.

                    Smaller private companies have laid off some People here and there, but it’s nothing compared to the numbers with public traded companies.
                    Last edited by kyle1974; 11-18-2019, 08:23 AM.

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                      Originally posted by Muddy Bud View Post
                      Their also wasn't a big push for alternative greener energy like there is in the present. In 2000 to about 2008 you could almost step from rig to rig from McCook to Laredo. Now there are no rigs, deteriorating compressor stations and hundreds of thousands of acres covered in wind mills.

                      Hell even some of the bigger company's like Shell and BP are gradually starting to shift green. I don't see a complete phasing out fossil fuels but do see a big scale down in exploration on both land and sea.
                      You know, now that you bring it up I'll make a prediction! That will be the trigger for the next boom. As soon as the government subsidies run out these windmill and solar power generation farms will begin floundering, there's gonna be a scramble to get Natural gas powered power plants back online!

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                        Well, OPEC has agreed to cut production even more. Price has bumped up a couple of dollars. How are yall feeling?

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                          Originally posted by miket View Post
                          Well, OPEC has agreed to cut production even more. Price has bumped up a couple of dollars. How are yall feeling?
                          Still steady here

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                            Steady over here.

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                              Offshore Gulf has steadily improved over this past year.

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                                My south Texas shop is still hanging in there. But our WTx shop is is needing hands and very busy.

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