Will we meet or exceed wall street expectations?
5 replies (most recent on top)
The monies associated with staff is not the issue. The company tapped into the credit line to the tune of $2.5 billion last quarter. The company loses money on every barrel of oil sold. The more production, the more loss. Sufficient credit line and asset sales to support the cost reduction efforts. The dividends will wipe out the cash.
I wonder if we will have enough money to pay out the remaining severances and pensions or perhaps we may reduce those as well. I should be on the cost cutting team I would have this company running lean and mean in no time.
By the time oil gets to 60 it will be Feb. 2017 which from what I understand we promised investors that we would be cash neutral by then. Hmmmm seems like something has to give perhaps the dividend? Time to hit the sell button take what you can now.
I smell blood in the water soon it will be time to cut the dividend. Probably a good idea to use those funds that would otherwise be spent on the dividend, to pay down debt then get ready to merge or get taken over at a 55 dollar premium right before the stock hits 25-30 dollars a share.
Of interest, asset sales and tapping of the credit line. A $100 million posted loss with an associated $3.5 billion tapping of the credit line is a $3.6 billion loss. The company is desperate to retain the credit line but the value of the assets decrease with every month of oil below $70 per barrel. As noted time and time again no business plan existed for oil below $60 per barrel and so the credit line is based on oil in excess of $60 per barrel. The math does not work under $60 per barrel and the credit line will be reduced by the banks without further asset sales to prop up the cash reserves.