Rumor is XOM is shedding personnel (10% last round) and now 20% this round to make room for a large acquisition. They need 1MM BBL per day replacement. This could be COP or OXY.
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XOM might be happy to help Oxy offload some of the valuable assets to help with its reserve replacement, but it certainly does not need the Oxy people that might come with a merger...
Maybe we need to offload many of the management layers that aren't adding value... and when was the last time that HR helped any of us :(
What is the difference between "debt" and "true debt"? And if oxy's debt was say 1/4 of what it actually is, you don't believe that would affect its value? Have you not been paying attention to the news on oxy over the last 12 months? The debt is the #1 issue affecting its stock price.
I swear, Oxy talent are stupid. Remember when Oxy agreed to buy Anadarko for $33b? With debt it was actually a $57b disaster. So no, buying Oxy at their $9b market value does not include their true debt. But lets not debate how stupid it would be to buy Oxy. Lets discuss the talentless population that is employed at Oxy. Noone can take on a multi billion dollar companies with a 20% payroll reduction. Stupid.
Oxy is on its own. No one is throwing us a life preserver.
I think you are mixing numbers. So much for dumb people.
The debt is part of the value, not in addition to it professor.
Lets play with numbers. Oxy current value $10b. With about $40b debt attached. Again, do you think Xom 20% payroll is $50b???? There are some really dumb people at oxy. Beyond ridiculous.
Remember all those times at Anadarko about Exxon buying APC. Never happened and that was before Oxy took on all the debt. I must of heard that rumor hundreds of time even when APC was doing good. If the stock went down the rumor started.
Someone needs to come truthful about the value of the unconventional properties bought from Anadarko. That is where the future of the company is.
Perhaps if OXY is able to sell its low performing assets and reduce overhead
Hahahahahahaha you really think 20% payroll reduction is going to be enough to take on cop or oxy? Hahahahahaha damn. The talent at oxy really is low tier.
Here's some further commentary:
https://seekingalpha.com/article/4356234-why-exxon-mobil-should-buy-occidental-petroleum
XOM doesn't need more debt (OXY). EOG though....
“I look over and there’s a crank right in my face....Larry Brown”
You must have overheard the XOM CEO and CFO discussing this in the men's room at the YMCA. Must be true!