It’s looking like 2nd quarter has been the quarter for significant write downs for our industry. Anyone have any ideas which of our assets will be written down in this quarter?
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Due to Exxon Mobil's strong balance sheet I believe Exxon Mobil could fully finance the deal with new debt: Assuming a takeover premium of 40% (and subtracting the cash position of ConocoPhillips as well as of Exxon Mobil) Exxon Mobil would have to take on $65 billion in new debt (in addition to taking over ConocoPhillips' existing debt). Shell, which has a market capitalization that is roughly half as high as Exxon Mobil's market capitalization ($199 billion versus $374 billion), has long term debt of $81 billion on its balance sheet – using the same leverage Exxon Mobil could increase its debt load to $152 billion. Since Exxon Mobil has $43 billion in long term debt on its balance sheet right now, the company could thus increase its debt position by $109 billion and would then have the same leverage as Royal Dutch Shell, which still sports an A+ credit rating.
Another opportunity to take write downs in Eagle Fart. Our collective memory will soon forget the adjustments and EF will be be rewarded for increased financial earnings. Anyone remember write down in 2009 that basically erased the $35 billion paid for Burlington? Time to do it again.
The CFO’s departure will reduce our IQ, at least according to the departing CFO. I wonder if he is leaving us with another Forex write down or other surprise that he managed with his enormous intellect. At least there will be more room once his ego departs, too.
There will be a significant accrual for “retirements” of the ELT (again) with seven figure severances (again) and “downsizing”. Don was just the first.
They'll also have to write down the collective IQ of the ELT.
Guessing here, an accrual for layoffs, and Exploration always has something.