Thread regarding ConocoPhillips layoffs

Sorry - CVX and XOM are brilliantly managed companies.

No listed or non-listed entity would be willing to part with more than $70B (Equity and Debt) for COP, unless they thought oil was heading to $70+/bbl from 2018. And who would think that?

The big question is, how is COP going to create sufficient cash flow to service debt and pay a dividend, with the great fire sale going on? You need assets to produce cash flow. I'd guess we only have a few assets that are generating free cash flow - Qatar, onshore Indonesia and Bayu-Undan? I'm doubting EagleFord is, but perhaps that is another one.

What assets/projects did the current ELT get us into / invest into, from the separation - deepwater (disaster), GoM (disaster), Canada (disaster), Houston twin towers (disaster), Niobrara (disaster).....

Greatest destruction of shareholder value by any CEO/ELT in the company's history? - and silence from the board. Has no one noticed that no activist shareholder has jumped on board COP to elicit extracting value for COP - perhaps because there is none to be had?

EOG...soon to happen.

Chevron and Exxon shareholders would not be happy swapping their shares for Conocophillips (and more Upstream). Just because what you propose is no cash doesn’t mean there is a free lunch.

A non-cash market cap based merger w/ CVX would be beneficial to current Chevron shareholders as Chevron would essentially absorb the COP interests at no out-of-pocket costs. Following the merger, there will be a significant downsizing of approximately 10,000 employees, the majority of which will come from the current 13,300 COP workforce as the combine would be approximately 78 percent CVX and 22 percent COP (who do think will be escorted out the door?).

Another possible merger candidate would be XOM. In that scenario, current COP shareholders would have an approximate 14 percent ownership in the merged entity. Existing COP workforce, all levels, would be eliminated in such a merger.

I can see how a merger with Chevron would be good for ConocoPhillips, I just can’t see what Chevron would get out of a merger or even a takeover of ConocoPhillips except disruption to their own operations. Maybe just buy ConocoPhillips assets so they can put their own people on them.

The merger w/ CVX would be very beneficial to current COP shareholders.

The COP BoD would be gone.

The COP ELT would be gone.

The combined workforce would be reduced by approximately 10,000 (most likely redundant COP employees)

The COP BoD and ELT have a duty to enhance shareholder value. The annual layoffs and asset sales is not working. Past time to consider alternatives. The BoD and ELT need to show cause for not initiating merger discussions w/ larger market cap integrated E&P companies like CVX or XOM.

-ydy, that might be the best idea that I've read on here.

Stop the dope, you are hallucinating

Ha - turn control to current cop management...what about the other way

cop management gets packaged out and we let some competent people run this place.

Who sanctioned the OSBU? What a waste

CVX is a vertically integrated company. With a merger w/ CVX, there would be a downstream icomponent.

Regarding approaching PSX for a merger, it is unlikely PSX shareholders or PSX management would approve such an arrangement. PSX and COP traded as separate companies on May 1, 2012. Since that time:

PSX share price has INCREASED from $33/s to $80/s.

PSX annual dividend INCREASED from $0.80/s to $2.80/s.

COP share price has DECREASED from $56/s to $45/s.

COP annual dividend DECREASED from $2.64/s to $1.06/s.

It is unlikely PSX shareholders or PSX management would want to turn control over to current COP ELT and BoD.

good idea, but even better idea is to merge with a downstream company so you'll end up with an integrated company with different segments that are inversely correlated to oil price. One company to consider would be P66. I know it would be effectively reversing the business school classic screw up split that happened a few years ago. This merger would have minimal corporate culture clash. Just because you made a mistake once does not mean you shouldn't try to undo it, better late than never.