What is the strategy of selling assets in depressed market ? Is there long term plan? I am not an oil expert but what will you do when you sell the assets ? May be grazing cows in the vast lands in new mexico ?
6 replies (most recent on top)
After that we
"Shut Down Bartlesville!"
The credit facilities are tapped out. The oil and gas business is a loosing proposition for ConocoPhillips. At the time of the spit upper management noted the business would operate cash flow negative. The credit facilities and asset sales were the bridge until the company would be cash flow positive. The issue is the company had no business plan for $60 oil. The issue is the company has no business plan for $60 oil. The investors consider ConocoPhillips a cash cow. Unfortunately one of the characteristics of a cash cow is the external environment eventually renders the cash cow obsolete (and out of business).
You guys don’t get it. Our value proposition is to: sell assets to buy back shares and pay down debt, after we sell more bonds to increase dividend even when we were/are cash flow negative. It’s much easier to manage/manipulate share price than to run a business.
My guess is that the banks are making them sell to reduce debt.
It's called going out of business. WAKE UP
It's the other half of "buy high and sell low" silly goose. IE: Burlington bought a number of years ago at extremely high prices (way, way toooooo high) and now the last half of the equation and sell low.