Interesting note... the last time oil was this cheap (~11.00) in December 1998, Oxy was valued about $8.00 at the same time... Think history will repeat itself?? Only -$4.00 to go!
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It is just going to be very hard to service any debt with prices like these. Future prices will tick up after May close outs, but to pull out of this without selling assets even at bargain prices will be a true miracle. They are using the stock to pay Buffet to save cash flow, and to be able to pay employees salaries, severance, and vsp payments. Whether Oxy or any other company these prices will make it where no one will be making money. The virus us very scary, but if people don't get back to work all over the country we are hosed. The demand for oil just is not there, and if you can buy it from OPEC cheaper than produce it there is no reason to drill.
Didn’t realize we had free cashflow. I thought that was all committed to Permian Resources.
Oxy's free cash flow dropped by 1.5 billion today.