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Started By
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4
Posted on 7/31/15 at 12:05 pm to The First Cut
Wait, what? 
You need to check your math, sport.
You need to check your math, sport.
Posted on 7/31/15 at 12:05 pm to BRgetthenet
Posted on 7/31/15 at 12:06 pm to The First Cut
Sell more truck nuts.
Simple.
Simple.
Posted on 7/31/15 at 12:08 pm to The First Cut
You don't make the same dollar amt. of capital investments every year. You adjust to the climate.
That would be like buying a building and expecting to pay it off in one year and garner no future benefit from it.
That would be like buying a building and expecting to pay it off in one year and garner no future benefit from it.
Posted on 7/31/15 at 12:10 pm to N2cars
First cut says you gotta invest 40 billion/year.
That's a lot of truck nuts.
That's a lot of truck nuts.
Posted on 7/31/15 at 12:11 pm to N2cars
Sorry, but exploring, producing, transporting, and refining petroleum doesn't compare to being a landlord. It is an extremely capital intense business. A one-time purchase of a building and mortgaging it for 30 years is apples-to-oranges.
Posted on 7/31/15 at 12:11 pm to The First Cut
quote:
not sure you can. If you are only returning $16 billion per year
Posted on 7/31/15 at 12:11 pm to BRgetthenet
Gotta open new markets.
I see a lot of nutless trucks. Piss-poor salesmen, IYAM.
I see a lot of nutless trucks. Piss-poor salesmen, IYAM.
Posted on 7/31/15 at 12:14 pm to The First Cut
Do you think a well produces only one year?
A well s an asset, just like a building.
You've gotte be trolling.
Posted on 7/31/15 at 12:25 pm to The First Cut
quote:
I'm not sure you can. If you are only returning $16 billion per year, how are you going to reinvest $40 billion the next year?
Don't confuse net income with cash flow.
In these capital intensive industries, even with all the accelerated depreciation/depletion that they enjoy, there is still going to be a lot of non-cash expenses reducing that net income figure mostly in the form of depreciation.
Definitely not a good quarter, but relative to deep sea drillers and small gas explorers on the fast track to bankruptcy, it's not near as volatile.
3% dividend should be safe for now, but with only a 3% yield, the market is not interested in taking on much stock price risk.
Posted on 7/31/15 at 12:37 pm to N2cars
Wells aren't a one-time expense. They require continual work-over - and that's just the hole in the ground. Then you have the facility to maintain, and all of the mid-stream operations, and all of the down-stream operations. It takes a hell of a lot of cash just to maintain your current production, let alone increase it.
Posted on 7/31/15 at 1:01 pm to The First Cut
quote:Disagree. You also have to consider the fact that the dollar has been rallying all year and is expected to do so. That will bring prices down further.
The news today from the wires that the Saudis are going to cut back is the missing piece of the puzzle that should cause oil to trade at these levels and not go much lower. I say not go much lower because we do have Iranian oil coming in soon if the deal is signed.
If oil goes into the 20's, congrats for saving at the pump but the economy as a whole will suffer greatly.
Posted on 7/31/15 at 1:09 pm to blueboy
I wasn't endorsing Cramer's theory - just noting that the Saudis are finally talking about cutting production.
This post was edited on 7/31/15 at 1:10 pm
Posted on 7/31/15 at 1:13 pm to BigB0882
quote:
This just tells me that gas prices were artificially inflated for a long time before they finally came down. Welcome to reality, Exxon.
Thanks for the insight.
Posted on 7/31/15 at 1:14 pm to RedRifle
Explains why the stock is down over 4% today
Posted on 7/31/15 at 1:16 pm to iAmBatman
quote:
Return on the investment of 10% is pretty good. I'd take that all day.
10% is a not a good margin. 32% is what most companies shoot for.
Posted on 7/31/15 at 1:17 pm to iAmBatman
It's like this..
Imagine you lost half you're income. Exxon would look at you and say big deal, you only lost let's say 50k.
That would be a really big deal to you.
It's not a big deal to them at all, they practically wouldn't notice a loss of 50k. You know why, they work on a different scale than you do. Their scale is a few orders of magnitude larger than yours.
So you buy a car for 30k and they build a platform for 4 billion. The difference is, they are ALWAYS car shopping. They have to buy a new car every year or they go out of business.
The day you start up a well it's a diminishing return. You won't get exactly as many barrels tomorrow as you did today. You constantly have to replenish your stock. It costs money.
If you cut your profit by half, you don't get to buy your shiny new platform and your ability to make money is diminished.
Get it?
Imagine you lost half you're income. Exxon would look at you and say big deal, you only lost let's say 50k.
That would be a really big deal to you.
It's not a big deal to them at all, they practically wouldn't notice a loss of 50k. You know why, they work on a different scale than you do. Their scale is a few orders of magnitude larger than yours.
So you buy a car for 30k and they build a platform for 4 billion. The difference is, they are ALWAYS car shopping. They have to buy a new car every year or they go out of business.
The day you start up a well it's a diminishing return. You won't get exactly as many barrels tomorrow as you did today. You constantly have to replenish your stock. It costs money.
If you cut your profit by half, you don't get to buy your shiny new platform and your ability to make money is diminished.
Get it?
Posted on 7/31/15 at 1:18 pm to RedRifle
Nearly my entire inheritance is in Exxon stock.
Might have to give my dad a call
Might have to give my dad a call
Posted on 7/31/15 at 1:18 pm to iAmBatman
quote:
Sorry you can't math good
How's that short position in Exxon working out for you?
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