The value destroyed by overpaying for APC and damaging the company’s risk profile is self evident. What may not be as evident is the ‘management discount’ currently built into the stock price. Many institutional investors simply won’t buy it. Sweeping out the CEO and her top cronies would immediately boost the stock by some amount that would not be immaterial. $15 is better than $11!
Seems so obvious - Board of Directors what say you???
3 replies (most recent on top)
@UncleBuffon
Clearly lack of due diligence but that article making the rounds on the interwebs is completely unrelated to the APC acquisition. APC withdrew from those leases well before Oxy acquisition. Oxy didnt intend to keep the GOM until either they didn’t get the offers they expected (ARO anyone?) or they realized how good it was.
Sufficient due diligence lacked in the Anadarko deal.
https://www.bloomberg.com/news/articles/2020-09-09/anadarko-s-100-million-ceo-ensnared-in-oilfield-fraud-lawsuit
It has been stated before that the board is likely waiting for another up tick in oil prices to then ride it up with the change. Look for it to happen near the end of the year as it will be even more evident that the synergies and FCF expected from merger will not materialize. The writing is 100% on the wall so much that VH likely has been sneaking her Bama gear out of the office so that she doesn't have to wait to use it in her off time attending games.
Its highly likely that her caving to Ichan's demands earlier in the year resulted in a few Q's worth of retention or leeway with his cronies.
Its also highly likely that she is really motivated to sell the entire thing because of the large CoC now in place.