Seriously, please keep the sarcasm and snarky comments out of this.
Why is the price still going down? COP and EOG are positive today. Crude is up close to 2%. Oxy‘s last earnings report looks good. Lots of debt, but the debt reduction plan is going really well.
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@3kve+1vXrfa77. Looks like you got what you were hoping for with WB acquiring additional shares.
https://finance.yahoo.com/m/5c8bb8e7-6f0f-31fd-9bcd-1eacdafa8afa/buffett-goofed-by-selling.html
We need WB to prop up the stock.
PS..$46.89 at lunchtime...$45 by Christmas? What is WB thinking these days about Oxy?
We were told by APC executives that there were thousands of drilling locations in the inventory and that we could effectively stop exploring ( which we effectively did) and focus on the low hanging production opportunities. I know Oxy isn't drilling a 1000 wells a year since the acquisition so there is a major disconnect. Was the Permian asset oversold or is Oxy unable to execute an effective drilling campaign? Should have more drilling projects than rigs at this point....
Interesting discussion. Many commentators indicate that the price decline is because Oxy is not finding new oil and gas fields. My understanding is that US exploration is dead since we’ve already found a plethora of easily producible oil and gas due to shale innovations. So it seems that the market should not be too concerned about no Oxy successes in exploration.
But then other commentators indicate that Oxy’s assets are just not that good. That is contrary to my impression, but I have no firsthand knowledge. I have been led to believe that Oxy has the best Permian assets.
It makes me think though…..
If Oxy’s Permian assets were so good in 2019, why did it really need to buy Anadarko? If Oxy and Anadarko’s Permian assets were so great in 2024, then why did Oxy need to buy CrownRock? Most likely explanation is that Oxy believes that it can exploit these assets, more efficiently, etc. but I now have some concern that these companies were purchased to replace existing assets that were declining faster than expected.
The billion dollars paid to make this APC thing happen made no sense.
The funny thing is that 1 billion was nothing compared to the entire amount put on the credit card. Hopefully the most recent deal works out better.
I'm guessing due diligence was not high on VH's radar when the good old boys were keeping her out of the game. Chevron decided not to counter should be all you need to know. So go the spoils of war, Chevron lived to see another day and a billion dollars extra in the bank for their troubles.
Unfortunately ,I've seen companies spurned before and in turn do foolish things...
That's the challenge. OXY paid top of market for assets (and presumably to extend inventory duration). However, most shops struggle to assign more than 2-3 years of good inventory remaining.
Did they bungle these deals and broadly miss on characterization (i.e. paying for sticks that didn't actually exist or weren't economic)? Or are Enverus and other buyside intelligence shops wrong?
Oxy spent billions for a mediocre land add in the Permian (Even at APC knew it wasn't prime acreage). Colorado is a political minefield, gulf of mexico and Algeria are finite resources ; everything else is for sale. Sold the crown jewels early (Mozambique, South Africa, Ghana and tried to sell Algeria)... Stuck with the leftovers (Colombia,Peru) that even they do not want to drill. If you think there are hidden treasures, find them and report back.
How can they not have good inventory. That was the entire reason behind acquiring APC and Crownrock. You never make out just paying for current production. There has to be upside in either EOR potential or drilling prospects.
Outsider here. Sentiment is that OXY has portfolio duration concerns (i.e. running low on good inventory). Add to this an inability to create value through A&D or E&A and you have an issue.
I would be curious if the internal view mirrors external sentiment (low on good inventory), or if the street has it wrong.
"Oil Prices Rise Alongside Geopolitical Risk"
https://oilprice.com/Energy/Energy-General/Oil-Prices-Rise-Alongside-Geopolitical-Risk.html
Until oil prices are higher the company is stuck with not having enough revenue to pay the much higher dividend required to attract investors.
Sarcasm? Oxy is down 31% since April 11th. VH needs to stop the bleeding or y'all will be polishing your CV's.
The question is... Is Oxy a production company or a carbon capture venture/chemicals company. Can't organically find the grease , can only pay for and produce what other companies find... Carbon capture is se-y but not making money. COP and EOG are both E&P companies and can find and produce petroleum. Oxy is from the same mold as Marathon...Oh yah, COP bought Marathon... That is how the Oxy story will end.