• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 4 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 10 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 23 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 22 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 9 hours Saudi Fund Wants to Take Tesla Private?
  • 19 hours Starvation, horror in Venezuela
  • 9 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 10 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 2 hours Venezuela set to raise gasoline prices to international levels.
  • 1 day France Will Close All Coal Fired Power Stations By 2021
  • 24 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 2 hours Corporations Are Buying More Renewables Than Ever
  • 18 hours WTI @ 69.33 headed for $70s - $80s end of August
Alt Text

Oil Falls Despite Crude Inventory Draw

Oil prices fell on Wednesday…

Alt Text

Gulf Coast Refineries Process Record Volume Of Crude

U.S. refiners are churning out…

Alt Text

The Productivity Problem In The Permian

The pipeline capacity crisis in…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

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…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





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