In May 2019, Occidental bought Anadarko Petroleum for $38 billion, taking on debt to outbid oil major Chevron Corp in a big bet on bigger growth in the largest U.S. oil patch in Permian Basin. The combined company was worth about $80 billion when the deal was announced, but is now worth just $12.1 billion.
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LOXY are weak hands LAPC will make this company great again MOGA HAHAHAHAHAHA
Unfortunately OXY is not dead, but UNDEAD. Poster child for a ZOMBIE company. We’ll be vegetating in this state until a) oil prices collapse again and put us out of out misery like CRC or CHK or b) after years of savings layoffs and bad morale oil prices recover enough to make OXY a just about decent investment for a solid company. Like Texaco or Unocal.
Everything has happened before and everything will happen again.
Seems so long, but only 13 months ago Oxy was a financially strong A-rated company (by all three credit rating agencies). Vicki and Oscar ruined it. If only there had been a shareholder vote it would have saved them from themselves.
I am Loxy vsp. I left because I didn't like what Oxy has become. Oxy took care of me when times were great, and previous leadership was very good to me. Current leadership has destroyed everything. Nothing good to say about current regime.
OP
I’m a LOXY VSPer. Left in September 2019 with a bit of lagniappe as I was going to retire anyway by end of 2019. Lucky me, no skill involved.
However much I think VH (and her puppet EC) messed up big time, OXY is not dead. In fact Oxy will probably not even file chapter 11 unless there is a massive temper tantrum simultaneously thrown by Icahn, Chazen and Buffett. They’re just not the type to do so. They’ll make more $$$$ by compromising with each other.
Only puzzlement to me is why shareholders voted to keep VH ( and some of her original EC members). She is not germane to the future of Oxy.
Shareholders (at least some of them who bought above $20) will likely get a bot of a haircut when some bond holders get new equity in lieu of debt but that can be negotiated without chapter 11.
Oxy is in critical, but stable condition. Not dead. Not even close.
I cant imagine a more justified and understandable end game than what is happening to the people of Oxy. You always hear about having the last laugh and that bullies and evil people get what they deserve. I'm enjoying every minute of this and I can justify it on every level. All you people can justify is that you persecute people and bully them and you think you are entitled to get away with it.
Well, you're not.
One big issue if anyone ever tried to buy Oxy and did a stock for stock we Oxy stockholders would be hosed. Even if they gave a 50% gain on a purchase that is only 18.00 a share. The debt becomes less of an issue if you can just out right buy Oxy on the cheap through a stock acquisitions. It is beginning to look like those holding shares much over 20 are hosed for years to come. I have no problem with VH, but maybe some totally new CEO might bring some excitement to the stock. We just need something positive to happen and help get the stock up. Really we need many good things to happen and fast, or our investment is in bad shape for years. To use the football analogy from Alabama we need to fire David Shula and hire Nick Saban. The board has got to do something, or maybe something is going on in the background already.
The combined company was never $80B. That would have been the case if they merged the companies (as they should have if management had any business sense). The combined company value after the acquisition was the exact same as before ~$42B). Its a little easier to think of this in terms of book value, simply the Assets less the Liabilities. In other words, if they were to liquidate all assets and pay back all debts, what is left over? The market will then place a premium on this book value to account for growth and the anticipated future cash flows. If the market valued the assets of Anadarko at $38B (what we paid), Oxy's market cap (~$42B) wouldn't have changed. If market agreed that it was worth more (as Vicky thought) market cap would have gone up. Unfortunately, with lowered oil prices, and accounting for default risk (shareholders last on the totem pole to get paid), the company isn't worth much. This is why the number one rule in any cyclical business, whether oil prod or construction, is DO NOT lever up. Keep your debt low, so that in bad times you can whether the storm.
OXY is an untouchable investment. If and when oil goes up closer to 50 OXY might begin to look relatively worse as many other companies are simply less damaged in the eyes of the investors than the POXY.
At least some of us can be comforted by the fact we used to be the cool kids.
The talented people have left Oxy. Why? Because they can find new jobs. Face it, if you are still at Oxy, you aren't that talented or too old for anyone to care.
Translation since May 2019: " We are Oxy mo–ns. APC people are better and smarter, just like their ceo. Layoffs are for Loxy. Vsp are for Loxy. No bonuses or raises, unless you are on the board. It's amazing you wipe out 80% market value, you go on LinkedIn and you conduct a propaganda call in to tell all the Oxy lemmings how great it is. "
Stupid VH destroyed an $80 billion company and gets to keep her job and gets a pay increase
Hard to imagine oxy being around much longer. It wont ever recover from the apc purchase.