• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 1 min Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 1 hour Tesla Launches Faster Third Generation Supercharger
  • 14 mins Passerby doused with flammable liquid and set on fire by peaceful protesters
  • 8 hours Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
  • 10 hours EU has already lost the Trump vs. EU Trade War
  • 12 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 13 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 8 hours China's Renewables Boom Hits the Wall
  • 6 hours Climate Change Consensus Shifts in Wind, But Gas Is Still the Right Move
  • 16 hours Iran's Master Plan?
  • 15 hours Iran Finds New Oil Field With Over 50 Billion Barrels: Rouhani
  • 11 hours Does .001 of Atmosphere Control Earth's Climate?!

Breaking News:

Oil Rebounds On Surprise Crude Draw

Earnings Season Yielding Surprising Opportunities

Now that we are over half way through earnings season for companies here in the U.S., there is an interesting trend developing amongst the hard hit energy companies. That trend is not so much in earnings figures, which are obviously abysmal on a year to year basis, but on costs. Some cost-cutting in the industry, and particularly amongst E&P companies, was inevitable and probably essential. What is interesting though is that in many cases cost-cutting has been achieved without cutting production. In fact is some cases, such as Concho Resources (CXO), production is growing at an amazing rate, even as overall costs decline.

When CXO reported on Wednesday, nobody expected a stellar story of profit with oil being around 60 percent below where it was at this time last year, but the adjusted earnings still came in positive and beat expectations. EPS of $0.38 compared to a consensus estimate of $0.28 was obviously welcome news, but that was overshadowed by the bigger picture. Operating costs per Barrel of Oil Equivalent (BoE) fell for the fifth consecutive quarter, and were down to $13.99 from $17.81 a year ago.

Figure 1: Source: Company Presentation

What is really impressive is that it comes alongside a 37 percent year on year increase in production, so it wasn’t achieved by simply closing the more expensive facilities. I guess we shouldn’t be shocked that many of these shale oil companies have fat to trim away as they have existed for a…




Oilprice - The No. 1 Source for Oil & Energy News