More stake in the gulf? The market hated it. Who's making these decisions!?!
4 replies (most recent on top)
To last post, I thought we aren't operator.
they got into iron clad long term deepwater rig contracts at precisely the market highs. 4-5rigs and billions of dollars of multi-year commitments with ZERO hedging. Commodity prices take a dump, market prices for rigs are now 1/3 of what APC's stuck paying. With no recent exploration success they need projects to feed the albatross (i.e.Rig Monsters)...hence the acquisition.
2b for an asset that will generate 3b over the next 5 years. Kind of like a reverse mortgage, you know that sham that old people desperate for cash get into right before they die.
Thus the reason for offering additional shares. It all makes sense now...