OXY assets are around $40billion. Anadarko assets are $33 billion and this is what CVX was willing to pay for Anadarko. OXY current debt is $47billion. Oxy is selling $10-15 billion to reduce debt which is the same as Anadarko debt before the merger with OXY. After the sale the new OXY assets will be $55 to $60 billion. New OXY has 743430000 outstanding shares. Divide $55 billion by OXY number of shares and OXY fair price would be $70 to $75/share
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Even a mild downturn could crush OXY under its debt load. Chevron (and I am sure many others) will be waiting to divide up OXY assets at title 9 prices. There is a reason OXY stock is tanking, as no one wants to be the one holding when the music stops. In the near term OXY has far more downside than upside potential, especially with Omaha holding 10 billion of preferred stock that gets first out rights before others are paid.
If oil prices keep tanking, it is very possible.
The “post” Nazi is alive and well on this website. If he doesn’t like your post he deletes it....
@5zce, why not rephrase the question this way; “How is it that the man CEO of CVX has more brains than VH? The thing is, Vicki Hollub of OXY is taking a big risk that could put OXY into bankruptcy if things go sideways. Chevon’s MW did the prudent thing by now bidding higher on the already high premium offer that OXY made to acquire Anadarko. If there is a M&A in Chevron’s future, you’ll see it made under the right circumstances and right price.
medicare,its not about the money,,money is no good if you cant walk...doc said i have severe degeneration in lower back,and lets not forget the 4 heart bypass.i gave all i had to chevron heart and soul...loading 6o foot trailers 1 case at a time by hand takes a toll on a body.its a little more modern now ,but back in the days it was hard especially being a chevron employee and bringing home 288.00 every 2 weeks.just remember money isnt everything.
Sorry to hear that @1wxx. Maybe it’s time to file that SSDI claim to get a little more money???
30 years at the product house put me in a wheelchair,knees are finished,bending turning lifting.60 hour weeks,k--led my body..im 66 and im good for nothing now.i have to use a walker now,,im retired but im finished..
If things go great with Oxy’s deal they will buy Chevron in 5-10 years. All smarties out there Anadarko was one of the most inefficient oil companies out there. Rest of the bunch are very well run and very little improvements could be made. In my engineering mind Oxy will excel in turning it around and show the returns.
Could and should are two different things. Oxy will sell off much of its assets and keep the best. It will struggle to pay off debt for a few years and then try to ride out the next downturn with the rest of the oil industry. That is when things will get interesting. We will have to wait and see. But we all know its not if but rather when. the next slump or crash will occur. No matter if you are a roughneck or a international corporation; save your chips for when the hard times come.
Why? They just took on a mountain of debt. Wait until they crash and burn... should not be long.
They could but CEO MW doesn’t have the
b a l l s to pull it off. His best and probably last chance for. “Good deal” was Anadarko.
They could, but if they do I bet they wait for share price to crater a little more. Either that or they'll soon make a bid for their #2 acquisition target (assuming it isn't Oxy).