Who thought a major acquisition in the middle of a pandemic with no end in sight (and guaranteed long term consequences on our industry once it does end) is a great idea? Was it really necessary to do this right now? Can somebody tell me any positives from the timing of this deal because I can't think of any?
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The company’s stock priced dropped 99%. Below $9 a share. Chevron is getting it chesp.
It’s called a fire sale. If something is cheap enough, you’ll buy it under any conditions.
The Noble Energy will be a good acquisition for Chevron, as currently negotiated. All stock purchase and no cash. CVX needs to raise its reserves. This is a fast way to do it at a low to fair price. Congrats. Chevron. I hope we can pull it off.
The Israeli assets are probably big driver
Chevron exploration group can’t find saltwater in the ocean let alone O&G deposits. We buy al of our big stuff. Other companies find their big stuff.
"...it's got to be better than the old strategy of setting capital on fire in the parking lot for no return."
Are you sure about that? That assumes Noble's assets are worth what they claim they are. This wouldn't be the first time a seller exaggerated value to close a deal and it won't be the last. Chevron may have just torched an aggie style bonfire.
We have been unsuccessful in exploration for a decade so we have no choice but to buy assets, even if they come with eight billion dollars of debt.
Cheaper to buy reserves! Please don’t ask your boss this question, unless you want the severance!
It’s a good time to buy, it’s cheaper to buy all those reserves at this price then it is to find them. Hopefully we buy more. This is how you keep a company around for another 100 years. Plus this is good for chevron employees.
Too cheap to pass up. Time to snap up assets while everyone else is broke.
It was cheap. Welcome to business. Keep working on your GO-400.