Thread regarding Chevron Corp. layoffs

Chevron is the much preferred offer for Anadarko

The following is a summary of the stock performance under the current OXY leadership which has been in-place since April 2016. During this 3-year period (April 2016 - April 2019), OXY share price has DECREASED 1.5% whereas CHEVRON share price has INCREASED 32.5%. Also, during this period, OXY dividend payment has increased 4% whereas CHEVRON dividend has increased 11.2%. OXY has been essentially dead money. Anadarko shareholders would be poorly compensated by accepting OXY stock and management performance.

OXY Performance:

April 1, 2016: $68.20 /share; Quarterly Dividend: $0.75/share

April 3, 2017: $63.74/share (1-yr CAGR: -6.8 %); Quarterly Dividend: $0.76/share (1.33% increase)

April 2, 2018: $64.67/share (2-yr CAGR: -2.7 %); Quarterly Dividend: $0.77/share (1.32% increase)

April 1, 2019: $67.18/share (3-yr CAGR: -0.5 %); Quarterly Dividend: $0.78/share (1.30% increase)

During the 3-year period:

OXY share has price DECREASED from $68.20 to $67.18 (a decrease of 1.5 %).

The quarterly dividend has increased from $0.75 to $0.78 (an increase of 4%)

CHEVRON Performance:

April 1, 2016: $ 94.26/share; Quarterly Dividend: $1.07/share

April 3, 2017: $107.80/share (1-yr CAGR: +13.5 %); Quarterly Dividend:$1.08/share (0.93% increase)

April 2, 2018: $112.24/share (2-yr CAGR: + 8.7 %); Quarterly Dividend: $1.12/share (3.70% increase)

April 1, 2019: $124.94/share (3-yr CAGR: + 9.4 %); Quarterly Dividend: $1.19/share (6.25% increase)

During the 3-year period:

CHEVRON share has price INCREASED from $94.26 to $124.94 ( an INCREASE of 32.5%).

The quarterly dividend has increased from $1.07 to $1.19 (an increase of 11.2%)

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| 1922 views | | 8 replies (last May 6, 2019) | Reply
Post ID: @OP+YOQ9LTS

8 replies (most recent on top)

@7wac, I think Mike has the benefit of hindsight with the Gorgon/Wheatstone “investment” bungle. Huge investments in new projects or even acquisitions can go south quickly. I think Chevron’s initial offer to APC is sufficient. It’s up to Anadarko to decide where they want to be.

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Post ID: @7ydj+YOQ9LTS

Anyone can see that OXY bid is better. If a shareholder wants to be in CVX instead of OXY after all of this is over, then it takes less than 5 minutes to sell the OXY shares and buy CVX shares.

I certainly hope Mike is not foolish enough to go chasing the OXY offer. CVX can live very well without APC.

This whole matter has done nothing but drag CVX down.

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Post ID: @7wac+YOQ9LTS

If you think the current Chevron offer is better then you probably think an annuity is better than lump sum pension. For sure the hedge funds that will decide this matter don’t think that way.

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Post ID: @1qpm+YOQ9LTS

I don't see how CVX will win against OXY without increasing the bid. Stock market will not allow APC board to ignore a $5billion differential on some theoretical better log-term fit when all hedge funds and the like aim for quarterly returns.

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Post ID: @1cjg+YOQ9LTS

I guess if the OP is right CVX will win the APC war without increasing their offer. Dream on!

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Post ID: @1gva+YOQ9LTS

@xeg, A “better offer” is not always judged in terms of the amount of money offered to being acquired. There are other aspects to consider. Anadarko is publicly traded and the shareholders, present and future, have other things in mind other than the amount of money for acquisition. It’s a going concern.

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Post ID: @pvy+YOQ9LTS

Anyone with half a brain can see Oxy is a better offer. Wake up

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Post ID: @xeg+YOQ9LTS

Trust me, you don't want anything to do with Oxy.

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Post ID: @yeu+YOQ9LTS

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