“I am writing today to inform you that Chevron has decided to initiate the process of marketing for sale AMBU’s assets in Pennsylvania, West Virginia, and Ohio.
“The marketing process is expected to take several months and may or may not result in the sale of assets. Until a transaction is finalized, we will continue to operate AMBU’s assets in accordance with Chevron standards...”
Steve Green townhall tomorrow.
A big group of finance and legal self nominated and won the chairman award for the atlas and chief acquisition in 2011 (you can look up in one search) should they get fired or at least reimburse Chevron the award money?
@12rRYLQD-gbad Is this person for real?
Wouldn’t it be easier to meet targets like all other O&G companies by cooking the books? Why worry about staffing, overhead, expenses, production targets, etc when you can pencil whip it?
Yes, that is exactly on target, we are over staffed. 10% could be trimmed over 1-3 years; no problem. Too many in the ranks don't pull their weight at present. We don't need slackers and the mildly-competent , we need highly skilled people who give their best. Too many roles exist that don't contribute meaningfully to our business objectives. The BU VPs will be served very challenging financial and production targets for 2020. ROI is paramount. Overhead will be increasingly be scrutinized and pressure will soon be applied across the functional groups to be leaner and more cost effective. Personnel throughout the enterprise will be periodically high graded. Doing more with less will find its way to every desk and every field position. Work loads will increase for many, efficiencies will be employed where possible but otherwise it will be get it done; no excuses. This is not your average ROM or re-org. Nothing is certain I admit, but my intuition says that MW, the Executives and BOD will see that profit and loss targets are achieved one way or the other. Time will tell.
Sell 5% of assets, mostly NOJV, and lay-off 10-15% of staff? Seems unlikely. Most losses will be natural attrition with lease expirations, etc.
fwzq, Those days are history. Chevron won’t be getting into large scale and long term projects anymore. Not like TCO and Gorgon/Wheatstone.
Great save all that money and then blow it up like in TCO or Gorgan, what a great strategy!
Over the course of the next few years, 10-15 billion in assets will be sold, the company's footprint will shrink and thousands of employees will be released. Headcount reduction estimates ranging between 4,000 and 7,500 would not be surprising. Hundreds of millions in payroll and benefits will be saved in short order. Prepare for the upstream evolution, "the times they are a changing".
eivq, yeah, maybe a few tens of millions from the get-go. Add up the savings in freeing up salaries and benefits, then you’ll appreciate the real savings for the company. Now if they get rid of all the unproductive folks this time around, we’ll be saving money in the realm of 100’s of millions. Every bit helps the bottom line for the stockholders.
Nonessential employees will be released from AMBU soon.
Layoffs don’t actually add up to much. A few tens of millions perhaps.
@emfh, don’t forget the layoffs and other headcount reductions coming before and after the asset divestitures. This equates to substantial savings as well.
Wirth said he would sell $15 billion in assets. CUE was a couple billion. Others maybe another couple billion altogether. AMBU maybe $50 million. Long way to go.
My bet is there won’t be but one interested buyer for the AMBU assets. No multiple bidders or competition, hence another fire sale. Chevron, the stockholders and employees get burned again. Same old story. Why am I not surprised?
Only a complete mo–n wouldn’t see this or the CUE sale coming from a mile away.
Do you think Tughill is a potential buyer?
#1fck some AMBU employees will be given option to transfer to buyer of assets or be laid off like the rest of the employees. Very few will be transferred to other BUs. It's about who you know and who can protect you.
I am sure this is like CUE. No one knew that was coming until it arrived from SR. The MD receives a ppt from BD and the OPCO Pres. That was that. I am sure the AMBU VP found out the same way.
Chevron is disgraceful for doing this right before Christmas.
Ian McKee
@3auo, Really? Does anyone know what is going on? Our fearless leader, CEO Wirth made an announcement not a week ago. AMBU is a goner!!! Yes, shut it down. This asset is up for sale... and real cheap too.
Out of the blue they just told us to shutdown all D&C ops. Does anyone know what is going on? Real weak on the part of 'leadership'. Merry Christmas!
is it too little too late to finally close the doors on the useless BU that AMBU has been. It was a financial drain on the company from day one. Good riddance.
Steve greens announcement is out.
Ohio assets have been up for sale for years with no buyer, I doubt they could sell it given current gas price, who would take it? No one can make money with these prices even EQT.
Can the DIA and Decision Making groups in San Ramon combinee into AMBU before the asset sale goes through? I figure we can write more useless overhead off this way.
Karma. I took a package when we sold the Michigan assets, back when the M in AMBU stood for Michigan and AMBU cared so much about tracking Green House Gas emissions. Glad to see Chevron finally decided to man up and just write down the BU altogether. Hope all u AMBU-ers land safely in a new job, best update ur LinkedIn!
Remember when we had all those HES guys up there? Like 1 out of 3 dudes were HES clowns. Ahh......those were the days, so efficient like a "factory" with the worst air and fluid rig schedules that never lined up and we still stuck around lmao. Now the "factory model" burns down.
What about the employees there? Do they leave CVX or post in PDC?
Let's be honest. AMBU is a garbage performing BU, and always has been since they were Atlas. Atlas was close to bankruptcy before Chevron even bought it. Dumb Chevron investors were completely bamboozled like clowns by Atlas into thinking Atlas's drilling cost were half of what they actually were, that gas prices would be 2-3x what they are now, that well performance would be 2x what they are. That in combination with poor management sent up to the training ground uncomventionals BU, is about to result in a 10B write off. Congrats Chevron! But on the brightside, maybe that old clown of a VP we had can make us a rap video like they had in MCBU.
This transaction WILL be finalized.
Honestly, this has been a long time in coming and should come as no real surprise to anyone.