[x1stcav]

Turns out that Blackmon is a Forbes contributor with extensive background in oil and gas.

Good reading.

[humblegunner]

Turns out that Blackmon is a Forbes contributor

He's also a D-bag blogpimp.

[jdsteel]

A link to a link...but I was interested in the article. I was about to pull a “humblegunner” but then saw the last bit: “Follow me on Twitter at @GDBlackmon, and read my daily updates at DBDailyUpdate.com”.

[PeterPrinciple]

So, what gives? A look at recent presentations by the CEOs at corporate shale producers, like this one from Encana’s Doug Suttles, shows a focus on responding to demands by investors that these companies dedicate more of their resources towards actions that will increase returns on investment capital, a pressure I wrote about in early November. One result of this investor pressure has been the announcement of a wave of stock buy-back programs since August. Investors are also pressuring companies to change executive compensation programs that have been, in their view, too focused on increasing production at the cost of profits.

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So, who are these investors and doesn’t increasing production increase profits.

Well I guess I know the answer. Worked with some investors who were only interested in IRR. To satisfy them we would settle loans for 50% quickly instead of the 90% we could have gotten if we worked them. It just brought profits in early and the knucklehead investment managers got bonuses but were fired at the end when the IRR got negative. But the knuckle head investment managers would then go get other knucklehead investors and sell them on the IRR they got for the first knuckle head investors.

[Admin Moderator]

Quit posting blog material in the news forum.

[pgkdan]

Thanks for posting.