https://www.reuters.com/markets/deals/occidental-petroleum-talks-buy-permian-producer-crownrock-wsj-2023-11-30/
12 replies (most recent on top)
If they offer another VSP hopefully they can pay it out over 2-3 years versus getting dumped on in one year. It is much more efficient that way rather than paying marginal taxes at the 38% tax rate. Yes, even those high salaried individuals deserve a break.
Since we are going in debt more, and with inerest rates up, could this mean possible layoffs or maybe another VSP being offered? Plus, articles talk about selling assets as well, so where will those come from?
Buying APC's mediocre Permian assets didn't save the ship ( We could have told you that). Carbon capture won't pay the bills either... Buy companies till you make it I guess.
Oxy will come out ahead from this acquisition. They always seem to do well in the end from growth. Their message about wanting to reduce debt cannot be taken seriously anymore. Also, the announced increase in dividends is not nearly enough to attract dividend investors.
Let’s go into more debt to increase inventory in the basin we wouldn’t prioritize drilling for many, many years! Yay!
Was this acquisition done by the same BD team that purchased;
Big Spring in Midland basin?
Red Bull South for $2.2B only to divest in for $300M?
Dumped legacy-Delaware assets for nickels which comprises ~50-60% of Permian Resources, now a $11B company
Only thing that pays better than OXY-BD is Texas A&M for coaches to leave.
If you can’t find it, buy it
https://finance.yahoo.com/news/occidental-jet-visits-buffett-hometown-190916033.html
The back seat you talk about is how it should be as a lot of the green energy movement is show for the government. A new admin could change this in a second if they want to. Oxy has played it right, but the money flowing in is from oil and gas, and will be that way for a long while. It is great we have the LCV group, but it will not be making money for the shareholders for a long time. Oxy needs to get as much oil and gas production and potential production as they can if the price is right. Everyone at the top knows this as well and they answer to the shareholders and not the government.
Carbon capture tech or the disgusting chase for hydrocarbons.... I guess the shareholders (Buffet) have spoken.
Oxy High Carbon Ventures tired of taking a back seat
Eat or be eaten