Moody's Investors Service has downgraded Marathon Oil by three notches from Baa1 to Ba1, taking their debt classification from investment grade to speculative grade or "junk”. My 'yet to vest' LTI is now worth about 15% of its 'intended value.'
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Once you're "junk" ain't no gettin' ya ratin' back up. #beentheredonethat
Marathon is a sinking ship!! How can you expect a CEO that was trained at XOM successfully run an "independent" oil and gas company? MRO is a wanna-be independent but continued to spend and operate like a major!!!
OEM- Yep. I always found it disturbing when your CEO espouses the motto "Leadership is not a position", yet has shown zero leadership. They (execs) are overcompensated for their business acumen. Buy assets high, sell them in a downturn. Buyback stocks high, sell them at the absolute lowest point. Tillman might as well be an algorithm, he repeats himself and is unable to adapt his answers like a normal human being. It makes him look meek infront of the investment community and his employees, equally. When you keep saying conventionals have to compete for capital and our only cash-generating assets are conventional, you lose all credibility. We (the employees) are not dumb.... and all our investors can read your 10k.
GIG'EM BOYZ!!!
These good ole aggies -- till O&G starts applyng a fudge factor (like a 0.1), this industry is in trouble.
oem, can't agree more, although other boys are to blame too - being a Yes Man doesn't rid you of responsibility to do the job.
fwt - it is Tillman who has destroyed the company; the other execs are all 'yes men.' Our good ole' boy board should share the blame with Tillman because by not firing him they have condoned his running of the company into the ground. My two cents, which is about what my LTIP is worth.
You know that LTIP number you just saw? Take off 15-20%.
In regards to wzk's comment, how can the execs deserve a bonus for last year when they want to focus on "value add" on performance reviews. They have single-handedly destroyed more value than any whole BU could have.
So let's review, Marathon repurchased $1.5B of stock around $35 and now is issuing 135 million shares at $8. I'd say Moody's junk rating is well deserved.
They also just made a stock offering of 135 million shares. That should help the old LTIP value.