Are the vultures circling Oxy yet?
25 replies (most recent on top)
@lup: Just don't be IT at Oxy. Talk about worst of the worst. I doubt those id–ts could find good jobs elsewhere.
@ajh is correct. There is job crossover for us!!! Let’s stay positive! Especially careers in IT—you guys are in demand with COVID forcing folks to work from home. All I’ve heard lately is how much IT is needed in these times. In the future after the virus is eradicated, companies will value IT even more and will want IT teams in place in case this ever happens again. If I could re-do my career, I would be in IT in a heartbeat. Talk about job security.
Chapter 7 is total liquidation and sale of all assets. Chapter 11 is debt restructure while maintaining normal business operations.
Chapter 7
The U.S. Securities and Exchange Commission states that under Chapter 7 of U.S. Bankruptcy Code "the company stops all operations and goes completely out of business. A trustee is appointed to liquidate (sell) the company's assets, and the money is used to pay off debt."
Chapter 11
This proceeding of the U.S. Bankruptcy Code involves not a closure, but a reorganization of the debtor's business affairs and assets. The company undergoing Chapter 11 expects to return to normal business operations and sound financial health in the future; this type of bankruptcy is generally filed by corporations that need time to restructure debt that has become unmanageable.
Public companies tend to try to file under Chapter 11 rather than Chapter 7 because it allows them to still run their businesses and control the bankruptcy process. Rather than simply turning over its assets to a trustee, a company undergoing Chapter 11 has the opportunity to retool its financial framework and be profitable again. If the process fails, all assets are liquidated and stakeholders are paid off according to absolute priority.
The future of Oxy is bleak, and if it comes down to, chapter 11 is the way to go. It will buy time, but definitely not promise a successful outcome. Hope this helps. Either way, shareholders are shafted.
LAPC out in Nov. I sold everything before the end of 2019 and left it in cash seeing a change in weather. I think I would like VH as a person given the chance but afraid she is given to bad advice. The Hawaiian shirt dude she brought on the road show just came across as flippid and condescending. Time humbles us all.
@poc: I'm not a Geo or Petroleum Engineer. While that means we didn't make as much as Geos and Engineers at APC/Oxy, we also have job prospects in many different industries. Whether that's Healthcare, Consulting, Tech, Finance, or other industries. I know quite a few Accountants, IT & HR individuals who have gone to other industries, because that's where the jobs are. Coronavirus is slowing hiring across all industries now (we're now in a hiring freeze), but hiring will pick back up again in some industries. And for many of us, we can find similar paying or even better paying jobs in other industries. For Geos and Petroleum Engineers, I'm not sure if that's the case, and don't know what to suggest. Good luck.
Chapter 7 or chapter 11?
same Caper. Same. I just thought things would get better and my stock would recover. Life s—s so hard right now. My house will go on the market in the next 4-6 weeks, unless things drastically change. And I just read an article about the real estate market being at a standstill. I’m a geologist and I see nothing for me or my colleagues job wise.
Well, I’m glad somebody is making out well. I still have my shares. I’m living off my severance with no foreseeable job prospects in the near future. And to boot, my wife worked at Oxy too, so we are both unemployed. Just great.
@spb. That’s good news for you! It’s actually nice to hear a little good fortune during times like this even if it’s not my own. I’m curious...what kind of job did you get outside of upstream, if u don’t mind my asking?
@wcn+14efsntc Absolutely. And may well continue to do so in the future. Save for 2015/2016, this is a rare time that Oil has experienced the free market like other industries. Artificial supply caps are nice to have when someone else is doing it - going forward, there is going to need to be prudence and planning before wild growth.
Let’s not forget we’re just looking at the “contract price of oil”, in Canada, North Dakota and Midland/Odessa Texas to name a few places, the actual price is roughly $5-$10 and falling. Putin and the Saudis will continue to flood the market with oil until most of the fracking companies are gone.
I'm thankful I sold some of my Oxy shares after taking the VSP, pretty close to the high mark post acquisition. I wish I had sold all of it of course, as I held on to some of the shares for the dividend, but at least I got something out of it. Luckily most of our LTI was in cash, and the smaller percentage was Oxy shares. And then of course the lump sum was all cash, which thankfully I hadn't yet put in the stock market, and now it's waiting for a good time to invest. I didn't retire, so I wasn't in a position of needing to live off of the severance (I ended up starting a better role outside of the upstream industry). I didn't make it out completely unscathed, but I do kind of feel like I won the lottery, and I wish more of you could have made out as well as I did. Best of luck.
@qui. I think you’re correct. I don’t know of anyone who’s sold their Oxy stock in the last 6 months because they’ve dipped so low since the merger. Does anyone know someone who has sold their stocks lately and actually MADE money? I don’t....
I’m pretty sure those LAPC peeps who took the severance will have worthless stocks too. I doubt anyone sold since stocks Have been low for a while now. I would assume most would think to hang on to the stocks until an upswing...but there will be no upswing. Hence, I think it’s safe to assume LAPC who took severance will lose their shares like the rest of us. They made out big time with severance but they will lose in the end too. Nobody will leave unscathed.
People have to give up on the idea of Oxy surviving, Chevron wouldn’t touch Oxy for a dollar, let alone anything above that price. The oil and gas industry is entering a period of contraction just like the 1980’s only this time their won’t be a recovery after ten years. The bigger companies will adjust which doesn’t include mergers or acquisitions.
@vki how many LAPC folks who took the severance last fall do you think sold their shares? I’m thinking not many. Most prob thought they’d retire with their Oxy stock, right? This is criminal what’s being to folks who thought they could retire and now what do they do?? Look for a job??? I have no words.
@nch+14efsntc Unless the stock was sold/cashed out, it would be worthless in the event of bankruptcy. Be it purchased shares, PRA, LTI shares, 401k shares.
Omg this makes me sick to my stomach. My shares will be worthless? What about my LAPC colleagues who took the VSP last October? What about their shares???
All creditors get paid first, then the preferred shares, then the common shareholders. With OXY’s debt position and $10 billion of preferred shares, almost no way the common shareholders would be left with anything after asset liquidation.
More than likely, the shares would be worthless.
@lvg+14efsntc Zero.
The only hope for getting any money is that when they liquidate the company's assets, there is leftovers to pay shareholders. But, given the debt situation, I wouldn't count on it.
I’ll be honest. I don’t really understand how the stock market works. What will happen to my shares if we go bankrupt?
I’ll be honest. I don’t really understand how the stock market works. What will happen to my shares if we go bankrupt?
Think Buffet would swoop in to protect his $10B? In bankruptcy, Bershire’s preferred shares would be paid out after all debts. He probably would not be left with much since assets are worth very little right now.
Actual price in Midland is much lower than the widely followed Cushing WTI price.