Stock price is now $40.51 and one year ago it was $72.18. The dividend is about 7.75%. Well, something will have to change to reverse this. Want to guess what that could be?
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The trend is Oxy, OP. When you flush something like Oxy....
It works well if actually DJ is sold.
CVX played this brilliantly - let OXY pare down debt for a year or two and then buy OXY + get APC's assets for half of what APC alone would have cost. From OXY, this will go down as one of the biggest blunders in M&A history. But what can you expect from a CEO who readily admits she has no M&A experience.
I have an idea, let’s cut Capex so much in the DJ that we destroy the cash flow generating machine that it has been. That will be good for cash flow generation to ensure that we don’t have to cut the dividend. I get cutting capex, but the DJ is barely going to be drilling or fracing. Base is declining. No wedge to make up for it.
Bye Bye...