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douginil

01/23/15 12:34 AM

#5084 RE: Al4343 #5083

The Share Price is not linked to the price of crude except by what the analysts/shareholder believes the revenue/margin and therefore profitability will be in the future. The % change in one is not directly linked to the % change in the other.

In one of the presentations I heard KH say they intend to push the suppliers of consumed materials and services for reduction in prices. However, the % reduction will not mirror the crude price changes. I suspect that most of the labor cost is pretty fixed and will only go down when a rig is taken out of service.