OKB and MPU initiated the idea of APC acquisition and executed the plan to finalize said transaction.
That transaction included getting $10B (at 8% per year) from Berkshire simply to avoid a shareholder vote they knew they would NOT win. How did corporate governance of Oxy allow such a transaction? Of course VH and her EC (sycophants all) fell in line.
If you examine the original acquisition plan, it made no sense at all for Oxy. VH and EC doubled down on Permian UC plays as the “value” in APC. PJB constantly touted that Oxy had the best technologies for drilling and completing Permian UC wells and the economies of scale to improve efficiencies. Oxy did have best overall methods / technologies, but — in aggregate— Oxy lost money on Permian UC wells in 2017, 2018 and 2019!
Oxy and VH also touted the idea in Houston Chronicle and elsewhere that they had solved the issue of CO2 EOR in UC plays. They had not; they haven’t since.
All the while touting their CO2 EOR dominance, Oxy was reducing Permian EOR budget by $200MM per year so they could drill more money-losing Permian UC wells.
Basically, VH and her EC took a ‘double or nothing’ gamble while lying repeatedly to investors, employees and the press. I’d have more respect for them if they took all that cash and put it on red or black on the roulette wheel in Vegas. They would have a 49% chance of doubling their money.
And while the ideation of the APC acquisition was fatally flawed, its execution was incoherent and incompetent.
The fact that OKB has even more Oxy shares is not germane. All of his compensation was ill-gotten and fraudulent.
I can’t complain about it personally. I got a great VSP after 12+ years with Oxy. I sold all my Oxy shares at $40+ ... But I have many friends at Oxy who are now paying the price for Oxy mgmt’s incoherence, incompetence, indolence, insolence, inanity, insanity, impudence, irrationality, ignorance, ....