Sold to Private equity Carlyle group for pennies on the dollar. Desperate move. Tired of dealing with pipeline bombings and corrupt politicians. Oxy does it to Ecopetrol once again! Thank you for your 1.4B JV in Permian, we are not selling to you our assets!
Where will they place all the expats? Welcome back to boring Houston!
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Colombia BU here, though this asset divestiture will reduce career opportunities for us here since we can no longer have a shot at temporary assignments or tranafers to USA, i really feel happy and relieved that we will no longer have VH as CEO and this TH guy ex BP CEO will take charge bringing loads of money
What will they do with expats, there are a few who are retire age but what about the others, how much will they miss the extra 40% allowance (yes to think colombia allowances was the highest of all international BUs except africa) always wondered how they got such high allowance, luxury apartments when it was really like working in paradise and so close from home
Evaluation most likely done on the highest case possible. High oil prices and high side performance of shale. Long range planning 101——- Don’t make decisions on high side cases.
If this is 2% of the $40 B, what is the worth of all the shale assets we have? I am not a technical person, can someone tell me why Vicki thought she must get the shale assets that APC had? Were the shale assets really generating a lot of money for LOxy before APC that she wanted/ should do whatever it takes to get it? I know we were focusing on shale drilling for years since that’s what they have on the call every quarter. Personal financial advice is not put all your eggs in the same basket, why did that as a company?
@1kok+17d7cBhX The difficult decision was to s— up pride and let CVX win the bidding for APC.
Everything after that is basically irrelevant. Oxy would not be offloading assets at fire sale prices had they not bought 40 billion in debt.
The SEC would prefer that companies don’t mislead. Just saying.
Offshore Colombia holds small accumulations of either biogenic Gas or condensate. Country lacks of offshore pipelines and storage capacity. Some of those prospective areas are disputed by Nicaragua. We barely have a rig in Permian, when are we going to be able to drill offshore Colombia if don’t have money even for mature Gulf of Mexico? Stop misleading investors. Your lies are worse than Trump!
Looks like a panic-induced sale to me. And have fun with the "highly prospective offshore blocks" and Ecopetrol.
Maybe the sale was the best option for an asset sale given the current value, future value, and marketability of the asset portfolio components. Sometimes difficult decisions have to be made.
I agree completely with @jhe, selling onshore Colombia was stupid and desperate.
Selling off conventional reservoirs puts even more emphasis on the Permian Shale Ponzi Scheme (PSPS).
The sales price is a joke. Kudos to Carlyle Group’s negotiating team. Oxy will recoup only a small portion of the contingent part, so they’ll not even get enough to pay WB in cash for one year!
And VH spinning the retention of offshore Colombia blocks as great future prospects is batsh*t crazy! Where’s Oxy going to get free cash to drill expensive offshore wells in the next few years?
VH and her EC should’ve been voted out / fired long ago.
Why are Oxy employees flying anywhere now. I assume this is controlled at the Executive VP level.
Who negotiated that POS deal
Offshore potential needs investment to be worth anything and we are not spending money as we need it for Warren
Need to start to cut into the staff benefits even more
Bet HR have a list for stupid VH of all the benefits that can be cut
Why are we still flying our employees business class?
It is almost like either the wrong people were involved in evaluating the acquisition or the head person discounted the advice of the evaluation team.
Such a shame..
And kept the offshore blocks... probably cause nobody wants them. The cash generating Conventional fields are being sold. The cash intensive ponzi shales that VH wanted so badly are still there making no money.
The sale was probably good as the country was starting to have social/ political problems again.
The poster below is why Oxy will fail if he/she is an employee.
Its already Q4 you simpleton.
Oil price could be higher in Q3
Wht makes you think Q3 will look better than q2?
Barely any activity in q2 and not much changed in q3 except more cash going out the door in q3 with warren's payment on the 15th.
Colombia sold for only $700mm with $125mm in contingencies? Wow, what a fire sale! I thought she said on the call that she wasn’t going to do that. What’s next - chemicals for $2 billion? Ha!
Not great timing for this sale when oil is on the downward slide again. There may not even be a stock increase even when oil gets back above 40. Looking forward to early Nov to hear Q3 results. It should be much better than Q2 but not enough to prevent layoffs.
Pay toilets are next.
Sale has bumped the stock up nicely to ................................ down 21/2 %
$825 M.
Thats pretty much all going to Warren next year for his $200M quarterly payments.
So when are we going to start paying down debt. We don't have that many jets left.
African assets
What’s next?
I wish we would sell some of Permian resources. We end up of selling all of our money making assets and keep the sh..hole Permian. Shale is dead. Wake up!
Expats need to be let go
Enough deadwood already in Houston
Will the government approve it? So much for VH being the Chairman of US-Colombia Business Counsel