Comments on: GM and ExxonMobil, an example of pain and gain. http://texasfred.net/archives/1563 No Holds Barred: News Opinion Commentary Sat, 20 Mar 2010 14:57:09 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: StormWarning http://texasfred.net/archives/1563/comment-page-1#comment-12581 StormWarning Sat, 02 Aug 2008 13:33:19 +0000 http://texasfred.net/?p=1563#comment-12581 Reading into the subjec ta little...a company repurchases stock, it is using its cash (in this case, profits) to reduce the number of shares outstanding. By doing this, there are fewer shares in the float, and therefore, earning per share go up. Common stock is, I believe, actually carried by accountants as a liability (then again, it is imperative to understand that I almost failed accounting in college and grad school). I believe that on a balance sheet, it is a wash. Reading into the subjec ta little…a company repurchases stock, it is using its cash (in this case, profits) to reduce the number of shares outstanding. By doing this, there are fewer shares in the float, and therefore, earning per share go up. Common stock is, I believe, actually carried by accountants as a liability (then again, it is imperative to understand that I almost failed accounting in college and grad school). I believe that on a balance sheet, it is a wash.

]]> By: TexasFred http://texasfred.net/archives/1563/comment-page-1#comment-12574 TexasFred Sat, 02 Aug 2008 03:28:37 +0000 http://texasfred.net/?p=1563#comment-12574 Think about this: If GM and ExxonMobil swapped out debt for profit, tit for tat, would you call that a *break even*?? :? Think about this: If GM and ExxonMobil swapped out debt for profit, tit for tat, would you call that a *break even*?? :?

]]> By: StormWarning http://texasfred.net/archives/1563/comment-page-1#comment-12573 StormWarning Sat, 02 Aug 2008 03:24:18 +0000 http://texasfred.net/?p=1563#comment-12573 Fred, I'm not even sure that I got it right (or only partially right). If I knew "so" much, I have sold all of my stocks on March 1, 2000 and not lost as much as I did 3 weeks later. But in trying to remember my Economics and Finance "stuff," that's what I could come up with. Fred, I’m not even sure that I got it right (or only partially right). If I knew “so” much, I have sold all of my stocks on March 1, 2000 and not lost as much as I did 3 weeks later. But in trying to remember my Economics and Finance “stuff,” that’s what I could come up with.

]]> By: Ranando http://texasfred.net/archives/1563/comment-page-1#comment-12572 Ranando Sat, 02 Aug 2008 02:00:19 +0000 http://texasfred.net/?p=1563#comment-12572 I'm in thanks. I’m in thanks.

]]> By: rtaylor83305 http://texasfred.net/archives/1563/comment-page-1#comment-12571 rtaylor83305 Sat, 02 Aug 2008 01:36:46 +0000 http://texasfred.net/?p=1563#comment-12571 We won't have to worry about oil company profits if BO is elected. Heard on the news today he wants to give every family in America $1,000 by taking the profits of the oil companies. Let's see, no matter what you think about oil company profits... The government forcibly taking money from one entity who they feel has too much and redistributing it evenly among those who did not earn it... Sounds like Communism/Marxism to me......... We won’t have to worry about oil company profits if BO is elected. Heard on the news today he wants to give every family in America $1,000 by taking the profits of the oil companies.
Let’s see, no matter what you think about oil company profits… The government forcibly taking money from one entity who they feel has too much and redistributing it evenly among those who did not earn it… Sounds like Communism/Marxism to me………

]]> By: TexasFred http://texasfred.net/archives/1563/comment-page-1#comment-12570 TexasFred Fri, 01 Aug 2008 23:19:57 +0000 http://texasfred.net/?p=1563#comment-12570 Storm, of course it was... Storm, of course it was…

]]> By: TexasFred http://texasfred.net/archives/1563/comment-page-1#comment-12569 TexasFred Fri, 01 Aug 2008 23:18:11 +0000 http://texasfred.net/?p=1563#comment-12569 Tish, I have watched it, I was raised in the oil field, my Dad owned his own service company... My 1st job as a teen was working on the floor of a rig like that... I quickly decided that I needed to go into another field, and did... I was raised in west Texas, south Louisiana and Oklahoma during the oil booms of the late 50's and all thru the 60's... Tish, I have watched it, I was raised in the oil field, my Dad owned his own service company…

My 1st job as a teen was working on the floor of a rig like that…

I quickly decided that I needed to go into another field, and did…

I was raised in west Texas, south Louisiana and Oklahoma during the oil booms of the late 50’s and all thru the 60’s…

]]> By: Tish http://texasfred.net/archives/1563/comment-page-1#comment-12568 Tish Fri, 01 Aug 2008 23:07:04 +0000 http://texasfred.net/?p=1563#comment-12568 Thanks StormWarning! Fred have you ever watched "Black Gold" on on Tru TV? Really great show. I actually grew up in Midland, Texas where some of the footage is shot. My friends call me a geek for watching it but whatever. My family used to clean up this big oil business office building in downtown Midland, Dawson Geophysical Co. My parents own their own janitorial business. I've seriously been working since I was 12 years old. I earned my keep. LOL. "Black Gold" is about drilling and the roughnecks that risk their lives. I knew that oilmen in Midland were rich, I just didn't know HOW rich until I started watching. It is a reality show but it's good. Tish's last blog post..<a href="http://ourvoices.wordpress.com/2008/08/01/hold-the-heck-oni-wear-crocs/" rel="nofollow">Hold The Heck On…I Wear Crocs</a> Thanks StormWarning!

Fred have you ever watched “Black Gold” on on Tru TV? Really great show. I actually grew up in Midland, Texas where some of the footage is shot. My friends call me a geek for watching it but whatever. My family used to clean up this big oil business office building in downtown Midland, Dawson Geophysical Co.

My parents own their own janitorial business. I’ve seriously been working since I was 12 years old. I earned my keep. LOL.

“Black Gold” is about drilling and the roughnecks that risk their lives. I knew that oilmen in Midland were rich, I just didn’t know HOW rich until I started watching. It is a reality show but it’s good.

Tish’s last blog post..Hold The Heck On…I Wear Crocs

]]> By: StormWarning http://texasfred.net/archives/1563/comment-page-1#comment-12567 StormWarning Fri, 01 Aug 2008 21:40:15 +0000 http://texasfred.net/?p=1563#comment-12567 Its actually pretty simple. The higher the prices go at the pump (or by the barrell for crude), the wider their margins (revenues minus cost) get. The cost of getting the oil out of the ground, once the well is drilled, remains constant (the cost of drilling the well, as well as the losses coming from dry holes, is part of their costs). As long as demand remains static, they continue to make loads of moolah (especially after their fixed costs are paid back)! If demand falls, they make less. As the price of crude falls (as in, the supply rises but demand remains static), their margin is less, even though they make money hand over fist. So now question why they don't drill the billions of barrells of crude supposedly under the North Dakota shale. Well they are. And as long as the price of crude stays high, their higher costs of retrieval are covered (all of this horizontal drilling costs more than drilling stright down). The fact is, and I admit to hearing this on the rad-io yesterday. The billions in profits being taken by the Big Oil companies are being used to re-purchase their stock shares (the fewer shares outstanding, the more the outstanding shares are worth), instead of investing in new drilling/retrieval technologies. Hope what I just wrote was OK. Its actually pretty simple. The higher the prices go at the pump (or by the barrell for crude), the wider their margins (revenues minus cost) get. The cost of getting the oil out of the ground, once the well is drilled, remains constant (the cost of drilling the well, as well as the losses coming from dry holes, is part of their costs). As long as demand remains static, they continue to make loads of moolah (especially after their fixed costs are paid back)! If demand falls, they make less. As the price of crude falls (as in, the supply rises but demand remains static), their margin is less, even though they make money hand over fist.

So now question why they don’t drill the billions of barrells of crude supposedly under the North Dakota shale. Well they are. And as long as the price of crude stays high, their higher costs of retrieval are covered (all of this horizontal drilling costs more than drilling stright down).

The fact is, and I admit to hearing this on the rad-io yesterday. The billions in profits being taken by the Big Oil companies are being used to re-purchase their stock shares (the fewer shares outstanding, the more the outstanding shares are worth), instead of investing in new drilling/retrieval technologies.

Hope what I just wrote was OK.

]]> By: Tish http://texasfred.net/archives/1563/comment-page-1#comment-12566 Tish Fri, 01 Aug 2008 20:27:36 +0000 http://texasfred.net/?p=1563#comment-12566 I can't even begin to try and understand the numbers. It's Greek to me. Goal: Better understand the economics around me. Tishs last blog post..<a href="http://ourvoices.wordpress.com/2008/08/01/a-bit-too-soon-maybe/" rel="nofollow">A Bit Too Soon, Maybe?</a> I can’t even begin to try and understand the numbers. It’s Greek to me.

Goal: Better understand the economics around me.

Tishs last blog post..A Bit Too Soon, Maybe?

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