Why is the company paying top dollar for new NGL assets while allowing the refineries to get more and more rundown?
21 replies (most recent on top)
Do you think refining will outperform chemicals in the next 20 years? If so then focus there and trim assets in the lower ROCE area. The acquisition or divestment of cpchem would either give us capital for refining improvement or give us a captive outlet for all this lighter midstream. Unfortunately I think if they sell cpchem then most will go to dividends and buybacks. And our board would probably throw in some layoffs just to celebrate.
Midstream is Gogo’s current favorite flavor of the month, but for long term profitability refining is the best way to go.
I can see selling cpchem and using the money to grow core business but we aren't only a refining company anymore. We are a midstream company with a few downstream (refining / chemicals) assets. Why plow the money into refining? The midstream is our new game.
Can we sell the 1/2 of CP Chem and invest the money into fixing the refineries?
And maybe buy another 1 or 2 refineries at distressed prices?
Could we just buy out the rest of cpchem already? Why bother with Chevron anyway.
As much as they have ran from refining, it is refining that keeps saving our as$. They need to dump lubes, sell coke production and settle in on the good refining assets.
Leaving CA is a no brainer - let them use solar…less power to ‘em. Those dingbats deserve the rude awakening.
Gogo please put some more money in my 401k so I can get out of your hair! About 500k.
Mulva - when men were real men.
Gogo follows the Mulva philosophy - buy high and sell low
He just wanting to buy businesses to run into the ground.
Gogo is just buying to be buying.
@m5+1jh3cytks if we didn't chop off that dead wood we wouldn't be able to afford visionary assets like this at fire sale prices
You must trust the process
I have a big issue with how we were told how much money we were saving over the course of 2 or 3 years by cutting costs and letting folks go. Then we turn around and spend a little over 2 billion dollars?!
Tax shelter
Old go go won’t be happy until all the refineries are sold off and all that’s left is mid stream.
FULL STEAM AHEAD ……
I don't really have any issues with us picking up new assets (rather spend our capital on that than the thousandth round of stock buybacks), but I am very curious what the expected return on this is. With how high the bar is for return capital at the refineries, I'd hope this thing is going to be making at least a billion a year for us...
Ol’ Gogo is just buying junk that nobody else wants and overpaying to boot.
If you have been around for any amount of time at PSX, you would know that the long term strategy for the company has been to reduce the refining footprint and to grow the Midstream segment. You are seeing that strategy unfold with the closing of LAR (non profitable for many years) and the buying of EPIC to enhance the existing PSX NGL infrastructure. You need to get used to the strategy of growing Midstream, Chemicals (CP Chem), and using Refining as a cash flow vehicle as long as it makes money.
Bunch of hypocrites is what they really are. If you know you know.
Because it now allows us to be ‘EPIC’!!!!