RE: Miscible flooding13 Mar 2022 08:35
I think this statement some's up the situation very well, copied from the CEO CA board.
Thing with this companies that are barely getting by is that they are really torquey on any success -- either the price of oil, or (in this case) production.
Right now XOP is maybe breaking even, maybe a little better...depending on production. We don't know.
But as soon as they can sort out their topsides problems, they are going to start selling 100's or even 1000's of BPD unhedged.
The netbacks by then could easily be $100/BBL. Take a minute to process that.
Company could go from continuous lossmaking to solid and sustained profits just by laying a single piece of pipe. Holy cow.
And the higher the price of oil, the more torque that change can potentially have