How Do We Get Out of This? What is the Endpoint?

ELT has been silent on historical commercial performance of Eagle Ford, Bakken and Delaware. A lot of talk about production but no comment on commercial value. Would like to see this addressed in upcoming quarterly meeting with analysts. These guys were blind-sided regarding the dividend cut. They may get blind-sided again, as will COP share price, when historical commercial performance is known. Future performance may be of some concern:

Geology/Reservoir: Poorer selection of candidate wells. Fairway trend "sweet spots" have been drilled. There has been some pressure depletion suggesting poorer future production performance.

Commercial: Costs are increasing resulting from increase in activity by the leading best of class shale producers such as EOG and Pioneer. Pricing may be stuck in range of $40-$60.

ELT may want to consider alternatives. Perhaps partner up w/ EOG and Pioneer in effort to add commercial value.

Comment! It's anonymous!

1 reply

The ELT could care less they make lots of money if we do well or end if we end up selling the company in a few years, it's the average joe who loses. The Permian unconventional will never payout, the Bakken as a whole is in decline due to reservoir pressure issues and we destroyed any value in the Eagle Ford by not drilling at $100 oil. The unconventional groups can't seem to grasp the idea that infill wells will never perform as well as the original wells and that you lose pressure/production through time like conventional reservoirs. Perhaps there is a reason most companies drilled the EF up early on, while we did/do continuous spacing tests to prove up more reserves that we will never get out of the ground.

Thread regarding ConocoPhillips layoffs

How Do We Get Out of This? What is the Endpoint?

1 reply

Post a reply