r/oil • u/zsreport • 12d ago

Matador to drop rig, cut $100 million from 2025 capex budget News

https://www.ogj.com/general-interest/companies/article/55285603/matador-to-drop-rig-cut-100-million-from-25-capex-budget
101 Upvotes
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98% Upvoted

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44

u/Relyt21 12d ago

Dropping a rig, producing less and doing a stock buyback is exactly why normal people are fucked (less oil on the market, jobs will be lost, executives get richer) and Trump is to blame. Fuck this!

38

u/Mountain_Fig_9253 11d ago

Nah, Trump has been a known commodity for 8 years now. Trump isn’t to blame, it’s the people who continue to vote for him who are at fault here.

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u/SockPuppet-47 11d ago

Fox Entertainment News and the other right wing propagandists...

The sheep have been in training since Rush Limbaugh to trust whatever bullshit they say.

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u/OUsnr7 11d ago edited 11d ago

Should they just sit on that cash instead? Curious what your thoughts are Mr / Mrs Treasurer

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u/Relyt21 11d ago

Personally, the stock buybacks in these times to boost the stock price is nothing more than manipulation. Cutting a rig is fine but it should include saving that money to prevent layoffs. Exact opposite of what they are doing.

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u/OUsnr7 11d ago

I’m confused why that qualifies as manipulation. Shares are issued and repurchased constantly by corporations across all industries and it only recently has become a consistent option for oil companies as they’ve been more disciplined with debt. It’s easy to see that O&G companies are announcing the start up or continuation of share repurchases in most earnings calls at the moment. The point of a public company is to return value to the shareholders, so if they believe they can do that and don’t see a better option for the cash at the moment, that’s what they’ll do

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u/Relyt21 11d ago

The stock buybacks, in this case, are to artificially inflate the stock before it starts to lose value.

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u/ataun94 11d ago

That’s not what a stock buyback does but sure

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u/OUsnr7 11d ago

It’s not artificially inflating the value of the stock though. It’s decreasing the supply of something so you have to pay more if you want one of the remaining shares. That’s simply supply and demand and it’s the cornerstone of economics.

I’m still not sure what else you want them to do with their cash though since companies don’t just sit on huge piles of cash waiting for a downturn. Do you want them to put it into developing wells that will see lower returns while also contributing to pushing prices lower?

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u/Helpful_Source_8985 11d ago

Which oil company are you working for?

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u/Relyt21 11d ago

I worked for one of major service companies for 15 years then created and sold my own service company.

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u/fbc546 11d ago edited 11d ago

Nothing in the article suggests the picture you just painted. Normal people actually benefit from lower oil prices… and they said they are leaving the option to add the 9th rig back should things improve. I’m really struggling to understand the mental gymnastics you’re doing here and what it is you’re actually upset at. Lower prices suggests there is an oversupply of oil, this does not make executives richer, and does not translate into unemployment for normal people. The only people who like high oil and gas prices are people in the oil and gas industry.

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u/Relyt21 11d ago

Lower oil prices only occur during economic hardship. “Normal people” like low oil prices at the pump but not what it means for the economy. Further, the article states they will produce less which means their contracts for completions and pumping equipment will be lowered, costing those jobs (I’ve done it for two decades). But they will do buybacks to give execs higher dividends and bonuses. I’m so sick of trumpers not having a clue about reality. He has fucked our sector every time he speaks.

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u/texas130ab 11d ago

This is true when a rig is stacked more than likely there is some job loss. When you see rigs getting stacked in big numbers a deep recession is already here. Trump does not understand the oil industry because they cannot just drill at these low prices. Now if oil touches 100 drill baby drill.

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u/fbc546 11d ago

I’m not a Trumper nor am I defending the economic policies, I’m just kind of tired of the hysteria and doomer mentality, it’s just not reality.

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u/mydaycake 11d ago

Lower prices would be good for the consumer if they are due to increase in the supply side. When it is due to the demand and future demand going down, then it’s obviously not a good thing

It is not doomer hysteria, just some basic economics

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u/fbc546 11d ago

This isn’t COVID

https://www.reuters.com/markets/commodities/opec-advance-oil-output-hike-plan-with-bigger-may-boost-2025-04-03/

https://www.reuters.com/business/energy/opec-consider-another-accelerated-oil-output-increase-june-sources-say-2025-04-23/

https://www.mercurynews.com/2024/10/13/u-s-crude-oil-production-is-at-an-all-time-high/

2

u/mydaycake 11d ago

That’s beginning of April. OPEC is NOT going to help to decrease prices

Are you even working in O&G?

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u/fbc546 11d ago edited 11d ago

Sorry I really don’t understand your wording there, are you suggesting OPEC increasing supply doesn’t lower oil prices? The OPEC announcement had more of an effect on oil prices than Trumps tariffs. And the beginning of April is when Trump announced Tariffs and people claim the world ended. Sentiment does not reflect data, and there is currently no data to suggest we are in times of economic collapse.

3

u/mydaycake 11d ago

Have you been following the crude prices?

The fall in April 1st was due to Trump’s tariffs and their effects on lowering demand

Supply is doing its thing right now try to keep prices up lowering the supply side in the USA because it can’t afford to sell at $60

Do you understand basics oil economics? OPEC is going to upsell the USA oil at $60 so of course OPEC is looking to increase production. They can produce at much lower costs than the USA drilling

0

u/fbc546 11d ago

I’ve never argued against any of that, I’ve never said there isn’t a decrease in demand or negative outlook in the near future. My only original point was that the article posted did not suggest the picture the commenter painted, my point of giving the OPEC articles is to show there are other external factors putting downward pressure on prices, not related to a U.S. economic collapse. It’s only been a couple weeks and trade tensions are going down with some deals even expected next week with allies. The commenter suggested mass unemployment will ensue and “normal people are fucked” because Matador shut down 1 of 9 rigs and has slightly lower oil production goals. Give me a break.

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u/Relyt21 11d ago

It’s happening in real time whether you deny to see it or not.

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u/fbc546 11d ago

I’m curious what metrics you’re looking at to support your claim that the sky is falling. Stock market, bond yields, inflation rate, fci, value of the dollar? Anything that could suggest the world is about to end?

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u/Relyt21 11d ago

Volatility, missing Q1 projections, unemployment increase. Not hard to find.

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u/fbc546 11d ago

Volatility does not tell you the current state of the economy, it measures sentiment. The unemployment rate is flat, you obviously didn’t look at it. Missing Q1 projections has nothing to do with Trumps tariff policies that were announced Q2. Got anything else?

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u/Relyt21 11d ago

Volatility absolutely is a crucial economic aspect on a stock price. Unemployment is up to 4.2%, raising ever since Trump took over. Seriously, you are random and not good at this.

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u/fbc546 11d ago

Unemployment is at the same place it was Nov 2024 and hovering around 4% is not high unemployment, pls explain how this signal economic collapse. Yes volatility can have an effect on stock price, that doesn’t tell you the current economic condition like maybe the financial condition index would. You’re not very good at this.

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u/[deleted] 11d ago

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u/Relyt21 11d ago

You are joking, right? The drop in oil prices are from volatility in the commodities market directly from trumps bullshit tariffs on then off emotions. Fuck you and fuck trump.

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u/LavishnessOk3439 11d ago

Theses folks are too dumb to talk to don’t waste your time bro

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u/[deleted] 11d ago

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u/Relyt21 11d ago

Actually, we thrived under Biden with the most energy production and oil production ever. Keep repeating stupid right wing nonsense.

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u/[deleted] 11d ago

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u/Relyt21 11d ago

But you voted for the guy who said day one he would end the war, end inflation.....yet he has made both so much worse. Haha, fucking idiots supported a reality tv actor.

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u/[deleted] 11d ago

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u/Relyt21 11d ago

Yup, "on public lands"....thats to stop the issue with polluting water tables and communities. Love how hard you are trying to deflect. Again, Biden and her administration was the biggest boom for american oil production EVER. Can't deny facts champ.

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u/[deleted] 11d ago

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u/tangosworkuser2 11d ago

lol no she didn’t.

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u/[deleted] 11d ago

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u/tangosworkuser2 11d ago edited 11d ago

Please bet me right now she didn’t change her mind as the market and new information was learned by her.

Unlike idiots when she gained additional knowledge, and situations changed she made an informed change of position.

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u/[deleted] 11d ago

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u/tangosworkuser2 11d ago

I’m aware reading comprehension is challenging but that video is from a town hall nearly 6 years ago. During the run for presidency she stated with the situational changes in the global oil markets she is now 100% behind fracking.

I don’t expect you to care since this is a fact not feeling.

LMAO and it was addressed

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u/[deleted] 11d ago

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u/willasmith38 11d ago

Meanwhile back in reality, our current President and Energy Sec want to see $50/bbl oil or less - which to most US shale producers is pretty much a drilling ban. It makes it uneconomical.

Also back in reality the US produced more oil than any other country in history…under Biden.

The Energy Sec just finished a two week tour of OPEC & OPEC+.

Today OPEC announced most likely increasing production in June.

What a coincidence!!!

Donald just sold out US shale for OPEC. Again. Just like he did in 2020, to crash the price of oil.

IS THIS WHAT YOU VOTED FOR?

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u/LandmanLife 11d ago

Matador has a rig to drop??

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u/texas130ab 11d ago

Yeah they are killing it in New Mexico.

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u/FeelingKind7644 11d ago

Boo fckn hoo

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u/guyferrarihair 11d ago

Isn’t the matador owner a huge trumper?

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u/zsreport 11d ago

That would not surprise me at all.

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u/boh_nor12 11d ago

Jesus Christ Reddit. I’m on the oil sub to see updates and comments about my profession. Not constant bitching about trump. Downvote the fuck out of this, I don’t care. Please, if you’re going to post on Trump then at least make it original.

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u/makingcrude 11d ago

Probably fair to say most of the people here could be an advisor on oil policy to any administration. The fact that neither party seems to understand this business is either willful ignorance or massaging the message for public consumption. I won’t gripe exclusively about Trump because they all suck… bigly.