Continental doubles 2017 budget

[purkey]

oil prices are stable and trending up, but how much credit should you give the trump influence for part of this. It's peripheral but none the less optimism creates opportunity. I'm betting others follow suite. They went from $920,000 in 2016 to $1.95 billion for 2017. Dow over 20,000, etc etc. Thinks are looking up for a chance. people don't realize the cap obama put on pretty much everything except giving stuff away. He was way out of his league and everyone got used to his less than mediocre performance. It's good to see someone stirring things up and creating opportunity for the US economy. The makers are appreciating this I'm sure.

 

[OKSTATE1]

oil prices are stable and trending up, but how much credit should you give the trump influence for part of this. It's peripheral but none the less optimism creates opportunity. I'm betting others follow suite. They went from $920,000 in 2016 to $1.95 billion for 2017. Dow over 20,000, etc etc. Thinks are looking up for a chance. people don't realize the cap obama put on pretty much everything except giving stuff away. He was way out of his league and everyone got used to his less than mediocre performance. It's good to see someone stirring things up and creating opportunity for the US economy. The makers are appreciating this I'm sure.

More cash has been on the sidelines than at any other time in the history of the country, many companies have been hording cash as well individuals.

 

[Rdcldad]

continental already a behemoth
is sitting on another behemoth

their production costs look like thelma and louise on their last ride

which ties directly to trump

 

[Headhunter]

continental already a behemoth
is sitting on another behemoth

their production costs look like thelma and louise on their last ride

which ties directly to trump

Refresh my memory is Continental sitting on a huge discovery here in Oklahoma?

 

[Rdcldad]

Refresh my memory is Continental sitting on a huge discovery here in Oklahoma?

while devon was screwing around in payne and logan county continental got the best of scoop and stack

they just completed a 2088bpd 15.3 mil gas monster in 4-14-12

 

[Headhunter]

while devon was screwing around in payne and logan county continental got the best of scoop and stack

they just completed a 2088bpd 15.3 mil gas monster in 4-14-12

English please.

 

[Marshal Jim Duncan]

Oil prices will be below $50 by summer. Hopefully not below $45.

 

[Rdcldad]

English please.

few miles west of greenfield ok
continental completed a well that is producing 2088 barrels of oil a day
15.3 million feet of wet gas a day

completion processes in this area have been improved in sliced bread kind of ways
that will give a much higher recovery percentage of liquids in the rock than previously thought possible

as for devon they invested heavily in payne and logan county instead of scoop and stack

the basketball equivalent of drafting
sam bowie in front of michael jordan

all it did was cost a couple thousand jobs
while the gm of the squad gets to blame energy prices

that's the short version

 

[Headhunter]

Thanks

 

[07pilt]

all it did was cost a couple thousand jobs
while the gm of the squad gets to blame energy prices

this

 

[Marshal Jim Duncan]

Well, prices were certainly a big part of the picture, as they always are in the energy sector. But Hamm and company have certainly shown a propensity for out-thinking many competitors. Relying so heavily on the Mississippi lime was a bad move by Devon.

 

[Rdcldad]

Well, prices were certainly a big part of the picture, as they always are in the energy sector. But Hamm and company have certainly shown a propensity for out-thinking many competitors. Relying so heavily on the Mississippi lime was a bad move by Devon.

i think this is because hamm cut his teeth driving trucks and hires guys that went to NYU

ceo's with savoir faire that corporate group think their way to the top have little flair for the vision necessary to make the gamble.

they're great at operating managing and consolidating their position

 

[Colorado_Poke]

oil prices are stable and trending up, but how much credit should you give the trump influence for part of this.

Very little. As @Marshal Jim Duncan said, prices are likely to come back down some later this year once new U.S wells come online and the inventory of DUCs starts to decline. I also don't anticipate that the OPEC "cuts" will last the entire year.

 

[Rdcldad]

Very little. As @Marshal Jim Duncan said, prices are likely to come back down some later this year once new U.S wells come online and the inventory of DUCs starts to decline. I also don't anticipate that the OPEC "cuts" will last the entire year.

how do you see this playing out on the balance sheets as production and transportation costs decline?

 

[Colorado_Poke]

how do you see this playing out on the balance sheets as production and transportation costs decline?

I want to preface my response by saying that I'm not an industry expert or investment advisor, so don't use any of my opinions as a basis for investment decisions.

I don't think production costs are going to drop that much. I don't have a great grasp on transportation costs for oil because my company is so gas heavy. That said, our transportation costs are unlikely to drop because all of our pipeline contracts are long-term with fixed fees built in. I know many oil pipelines are the same way - not sure about shipping by rail.

Where the big cost savings are happening right now is on the drilling and completion side. Day rates have come down due to decreased demand for services, and the number of days it takes to drill a well has come down for most E&P companies due to greater efficiencies. That's one of the big reasons that the Permian has remained red hot throughout the downturn. It also means that more and more drilling opportunities in nearly all regions are becoming economic when they previously weren't. It leads to U.S. production increasing if commodity prices remained static. In an increasing price environment? I think production will ramp up even quicker and drive prices right back down.

Hard to say what it means for the balance sheet - it's obviously going to vary by company. In the current price environment, I think most companies are going to try to spend within their operating cash flows, so I don't think you're going to see many companies paying down their debt, or taking on new debt to grow production rapidly. Most bond issuances the last few months have been simple refinancings - issue new notes at a lower interest rate, and retire older notes that were at a higher rate. The other benefit of refinancings is the delay of the nearest-term bond maturity.

Not sure if this answers your question or not - after rereading my post, it seems that I started to ramble a bit.

 

[Rdcldad]

thanks for your insights!