Q: What if the big Anadarko deal never took place?
Answer: We would all be richer because the company would spin off all of this cash to us instead of paying down debt and WB.
By the time the debt is paid down we will be suffering from low oil prices again. A bad deal cannot be washed away by high oil prices.
@nxe+1jCXIqbm
The stock price dropped below $10 and it fell much further than it would have otherwise because of the massive amount of debt Oxy took on with the acquisition.
Oxy’s stock price today is the same price it was in April 2019 before Vicki made the offer for Anadarko and the dividend is significantly lower. Oxy was paying $0.78/share/qtr prior to acquisition, cut it to $0.01 for 2 yrs and it is now $0.13/share/qtr.
https://www.nasdaq.com/market-activity/stocks/oxy/dividend-history
Chevron’s stock price is ~50% higher today than in April 2019 and they consistently increased their dividend from $1.19/share/qtr to $1.42/share/qtr and never reduced or paused the rate of dividend increases.
https://www.nasdaq.com/market-activity/stocks/cvx/dividend-history
It’s clear Oxy and all the shareholders not named Warren Buffett would be better off had they not bought APC.
Why isn’t the company spinning off cash to shareholders? It seems like the loyal shareholders keep hanging on for this pie in the sky growth and dividend that just may never happen. Why is this so poorly managed?
The price dropped to 15 because of Covid and lack of demand for oil and not the deal.
I wouldn’t have been able to buy so much Oxy stock at $15, which is now worth $75.
I'd be working for Chevron... Instead...Oxy took on massive debt, Chevron got a billion dollars as a breakup fee, APC executives walked away with Millions of dollars. I turned down an offered position @Oxy for the COC. Life goes on....