SEC filing yesterday, sold 30,000 shares
5 replies (most recent on top)
@vhb
Here are the facts.
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, ....
Not to let facts interfere, but he sold about a third of his position. That means he was likely just diversifying into something else.
OKB must be:
1) desperate for cash to sell at such a low price, or
2) he’s selling now because coming BK will give haircut to all shareholders as creditors take equity for debt restructuring.
It’s a shame that the instigators of the APC acquisition— OKB & MPU — are still profiting at all from the largest case of MCAP destruction in O&G M&A history. Along with VH and the entire EC, they should be in prison for NOT providing their sworn fiduciary responsibility to Oxy shareholders.
You’re surprised he was awarded shares? Life is always a win-win for EC. They get paid no matter what. Poor performance may result in less comp but it’s still a F load of comp.
Question is whether to read into the fact that he SOLD them.
WTF! He was awarded 30000 shares for his BS and incompetency?