PXD layoffs
Posted: Thu Apr 04, 2019 12:30 pm
A poster on an Investor Village energy message board (TODD 1956) claims to have a good friend who has worked for years at PXD. Todd posted the below message today. Another poster followed. Both are pasted below. I should add that Todd's earlier posts about what his friend at PXD supposedly has said are pretty negative about the company.
"My Best friend at PXD just told me that the company just announced voluntary layoffs of any employee over 55 with a 1 1/2 year pay severance package and all stock options immediately vested 100% He was in his final month but got the package also. They also are going to layoff non voluntary personell after the old guys leave. No reason was given the people but since they have sold off lots of their service and are trying to get to Permian only the consolidation is a cost cutting exercise in effort to return to a positive CF model company wide. He reiterated that until oil gets to 65 the picture is still cloudy at best
Hopefully this is the first step for others to follow to constrain the all in drilling idea and since the quitters bonus is so lucrative the need to continually pay yearly bonus is reduced
Full disclosure: Don't own PXD Never have Never will
Trade Well and Prosper...TODD1956 "
and ...
"The PXD layoffs are going to be pretty nasty. The voluntaries structure was very generous, so it's nice to see that they're doing well by their employees.
Pioneer was operating a $3B capital program with 3,000 employees and $400 million in G&A. They considered themselves quite fat and will be making very large cuts (prefer not to disclose what I've heard).
Contrast this to certain peers which have comparable capital programs but multiples of Pioneer with respect to headcount and G&A. It may get pretty nasty in the space.
From an investor perspective. These behaviors are consistent with a continued deflationary environment in the shale space (cost structures continue to trend down). O&G equities have typically performed very well during inflationary periods and very poorly during deflationary periods. In effect the value of their legacy investments drop as the cost of adding new supply declines (driving oil prices down)."
"My Best friend at PXD just told me that the company just announced voluntary layoffs of any employee over 55 with a 1 1/2 year pay severance package and all stock options immediately vested 100% He was in his final month but got the package also. They also are going to layoff non voluntary personell after the old guys leave. No reason was given the people but since they have sold off lots of their service and are trying to get to Permian only the consolidation is a cost cutting exercise in effort to return to a positive CF model company wide. He reiterated that until oil gets to 65 the picture is still cloudy at best
Hopefully this is the first step for others to follow to constrain the all in drilling idea and since the quitters bonus is so lucrative the need to continually pay yearly bonus is reduced
Full disclosure: Don't own PXD Never have Never will
Trade Well and Prosper...TODD1956 "
and ...
"The PXD layoffs are going to be pretty nasty. The voluntaries structure was very generous, so it's nice to see that they're doing well by their employees.
Pioneer was operating a $3B capital program with 3,000 employees and $400 million in G&A. They considered themselves quite fat and will be making very large cuts (prefer not to disclose what I've heard).
Contrast this to certain peers which have comparable capital programs but multiples of Pioneer with respect to headcount and G&A. It may get pretty nasty in the space.
From an investor perspective. These behaviors are consistent with a continued deflationary environment in the shale space (cost structures continue to trend down). O&G equities have typically performed very well during inflationary periods and very poorly during deflationary periods. In effect the value of their legacy investments drop as the cost of adding new supply declines (driving oil prices down)."