APC market cap has gone from $46B to $22B. We are spending and borrowing more than we are making. Our debt has increased and our asset sales are not panning out! How long can we last? Will Exxon pick us up before we go bankrupt?
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whatever tweaker. read this after the meth wears off.
so anadarko is refinancing $3.75b in old debt with 3b in new debt. that means it will have to pony up for the extra $750m in 2017. $1.75b will be paid out by 9/16 to refinance the s-t debt. anadarko can hang onto and play with the other $1.25b until the 2017 debt comes due. there will also be $3b in asset sales for the year with more than half still pending, lets assume they actually close.
so anadarko will have about $939 bank cash and $1.25b and $3b, about $5.15 in all, to cover cash needs for 1.5 years of financing, investing, and operating losses thru 9/2017, when $2b of debt comes due.
so as of 9/2017 $2b is gone. that leaves about $3.15b.
interest on the debt was supposed to be $932m in 2016, probably a little lower with the refinancing and the interest rate swaps. probably another $932m in 2017. that’s about $2b gone by the end of 2017.
the layoffs costs are 260m in cash in 2016, 380m total. but this is just the cost for round 1 of the layoffs.
capex for 2016 is $2.6-2.8b even after the 50% cut. by this point theyv e chewed through all the cash and an extra $1.5b. where is the capex cash for 2017 going to come from?
all this bleeding is before we even get to negative cash flow from operating losses, this was $1.8b last year. not sure what they will be this year but it will be a net loss unless the market rebounds. how will anadarko pay for this, how will it pay for it next year? more assets sales at firesale prices? once prices recover how will it fund the massive capex it needs to return to profitability?
Huh?
APC paid off everything through 2021. LOL. Fool you drank the koolaid! READ THE PROXY PEOPLE!
nope. my numbers came from the financials. the cash reserves are part of st assets. the spending cuts to capex and financing are not part of operating cash deficit.
Apc paid off all debt through 2021... And the layoffs are paid in full with cash... 3 B IN monetization and 50% cut in spending puts apc in the green for 2016. You all seem to have forgotten cash reserves? This is all public information. No reason for overzealous speculation...
APC can avoid bankruptcy by laying off all those stinky old farts with martyr complexes who spend their work days monitoring the Facebook postings of all "these rotten kids" and resent the fact that other people are happy or optimistic.
More than anything management and HR want employees who toe the line and put on their happy face, like the way the institutionalized nutcases are in Cuckoo's Nest. It's because of the natural iclination of old timers to be downers that so many of them were laid off.
Next time they will still be a good place to start. Don't cut the fat! Cut the gray hairs! Give Anadarko a makeover that will attract youthful energy!
Also Al needs new eye candy. Number 2 is getting kinda saggy.
After the severance, pension & pwa payouts for the 1,200 people laid off, APC will be BANKRUPT for sure.
i mean 340m in cash was not borrowed. apc living on its credit cards
So at ye 939m in cash. 599m in new debt issued last year. So 340m in cash is borrowed. Cash deficit last year from operations was -1.9b. St assets were 3.9b and stliab were 4.1 b. my guess is that the cash runs out middle of next week.
I don't believe quarterly statements will look as good, consequently failure may be much sooner!
Look at the cash flows statement. Roll sales forward and add to the cash balance. Minus out average monthly cash out flows. That's how long this can go on.