http://www.cnbc.com/2015/08/03/chevron-exxon-going-in-different-directions-analyst.html. You can't pay the electric bill, your vendors, your employees with oil reserves and promise them a piece of a LNG plant. In these times free cash flow is king. Now look at how these two companies strategically planned.
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We are entering turnaround season and the end of the summer driving season. With current inventory levels, prices aren't going to rebound this year unless someone starts an all out war in the Middle East. Maybe we'll see WTI at $75 next summer.
Watch the futures of West Texas Intermediate. Some predict it will dip more but will eventually hit $70 by the end of the year.
the corp factor hasn't been over 1.5 in several years now...
-2.8
So...does that mean the corporate factor for the CIP will be less than 1.5?
A bit of a pickle lol. Exxon is bringing in $1.40 for each dollar going out. In 30 days Chevron will approach 50. 50 cents in for every dollar out. What do they sale? This will soon approach uncharted territory. Spending 90 billion with no increase in production. We are about to get body slammed. Stock closed at 85. It will hit 70 before next earnings call. I think the entire management team will have laryngitis.
Crude future prices are crashing hard. 45 bucks a barrel baby! We will see a dip below 40 before its starts to climb again. BP, and Shell are saying prices will not recover for years. Recover being above 70.
Now what we know that no one else can know or comprehend is zero leadership. Go up your chain of command. Would you let anyone of them be in charge of getting a company out of a 100 year event? That's the part that the outsiders do not get. Seriously how do you recover when 90% of leadership can't execute a project to get a new printer?
So,... I have an aversion to those who begin each sentence with "so,...". Nonetheless,... Glickman does have a point, and Chevron does appear to be in a bit of a pickle. These are the times that test men's souls.