due to insurmountable debt they acquired when Oxy spun them off. Sounds like Oxy enjoys sinking ships with large debts, hedging on better oil prices. All under one CEO.
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That's true, but it's so easy to criticize the chef when you don't even know how to turn the oven on. Please tell us oh sage how you would have done better.
I would invite all these genius critics go start an oil business in California and see how well they do. I'm sure you will be profitable and report your success back here soon.
Remember too Oxy owned lost of CRC shares in exchange for debt. We could be hurt too.
Wasn’t VH President of the Cali assets under Chazen? Wasn’t it why she was promoted to CEO in the first place. I remember some a–hole managers convincing a lot of Oxy staff to go to Cali for the split for so much more money. Oxy was soooo fuzzy in their communication back then as well. A lot of the current Oxy debt was Oxy’s decision to buy Anadarko in the first place. Oxys fault, not APC. Bad moves VH.
WES will be done the same way if possible. CoCer from Lapc here. There was talk about WES taking on debt loads when they were trying to spin off WES completely. I understand that left only a few foolish interested parties to buy out Oxy and it hasn't happened yet. Dont think they will give up on the strategy but it might be some time before anyone I'd dumb enough to fall for it.
Loxy here. To be fair, the Elk Hills reservoir that Oxy historically owned was a gold mine. It was California's politics that made it important to profit. So Oxy sold it off, and attached it with some debt in the spin off. The market bought it up. Typical corporate and stock market shenanigans. Find the next s—er. And now those bag holder's stocks are worthless. I dont see this happening to Oxy, but if oil stays in $30-40 for next 5 years. Yikes. Dead man walking.
Brilliant strategy, unfortunately there are winners and there are losers.
CRC was under Chazen, not VH.
And from an Oxy side, CRC was a master stroke of management. Saddle it with debt and spin it off. Much like APC management getting Oxy to overpay, they did their job.
A check on the CRC Layoff board finds employees blaming Oxy for f-ing the company from the very beginning:
a post from Jun. 2016 after a CRC reverse stock split: "Oxy left this place in a total mess and pulled the wool over peoples eyes. Nobody would work for those bigoted cretins, no surprise, so they upt and left. Years of mismanagement and sub par staff left this place a wreck. The drop in oil just added to the pain."
Then a more current post from Jun. 2020: "Toxic org spun off from a toxic org...full of toxic attitudes and a toxic financial statement. Corp culture is trash. After a ch 11 reorg another round of "lunch meetings" am certain this will be a topic again in another 5 years."
It turns out the CRC was spun off from Oxy loaded with a s-load of Oxy debt. Sound familiar? Can't teach an old dog new tricks. What a cesspool of a company we are employed at.