As we all know, Mr. Mulva, with the help of our board of directors, executed his very short sided plan of splitting our very profitable company in two. Now with oil prices low COP has no defense, or back up plan for negotiating the turbulent waters we find ourselves in. We are seeing very clearly how their gain is certainly our loss. I do not give them the benefit of the doubt. History tells how this is a cyclical business and they should have realized that a positive stream of income during times of low oil prices would be a benefit. Do we have no recourse? Is there no mechanism within the American laws to hold our companies leaders accountable for their blunders? Jim Mulva left our company positioned to fail, he was rewarded with a 260 million dollar golden parachute. This does not seem right! In my mind he stole that money from all of us.
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COP will have to learn how to manage within a pure E&P environment much like Anadarko and EOG. The COP "compelling dividend" is essentially a measure of a risk premium demanded by the market for a perceived under-performing organization. COP did not exit exploration because of successful efforts. P66 should not be a buffer for a market-demanded high dividend yield under-performing E&P organization.
I always thought it was funny that you could take a company and split it in two and increase the overall overhead (2 CEOs, etc.) and think it would be more valuable. Wouldn't a better strategy have been to keep the company together and just management both sides on the business differently? There isn't really anything that you could not do as a combined company instead of two separate companies. The opposite is not true however.
It is all just a game to try and increase share value and appease the analysts and investors. The problem is the wall street investors do not care about the actual company, because they can make their money when the stock prices peak out and then sell out and short sell and make even more money when the prices go down. So basically we now have two more volatile companies for the wall street investors to jump in and out of and ride up and down.
Wait is this a P66 site? I keep having to put in 66 to submit my replies. Oh what a conspiracy.
I am praying for all my ex P66, Conoco and COP friend . But, I still remember how upstream treated downstream as 2nd class citizens. DS was a cash cow for the company but never allowed DS to grow. They would take the cash to support US and not invest in the midstream buisness. Now, your asking for us back? Maybe we weren't 2nd class after all.
Pretty sure everyone was jumping to Upstream right before the split.
Mulva aced it. He will be known as Dick Fuld (Lehman brother's CEO) of oil industry