$38/share in cash and 0.6094 OXY shares. APC up 9% pre-market, OXY down 6%.
8 replies (most recent on top)
Anyone know what APC's BEP prices are on oil and gas, what Oxy's are? (Real BEP, not this thing with the hurdle rate of return included as a cost.)
Oxy is probably better for employees, smaller buyer would need to keep more target employees. If Oxy's debt ends up too high, Oxy will be a miserable place to work especially if oil prices drop. Lots of belt tightening and layoffs.
But keep in mind that Oxy's share valuation is net of all of APC's debt. If APC can generate enough cash from Anadarko's assets to pay down this debt, there's no reason Oxy can't do the same, assuming they can refi. Maybe even better able to make debt service after redundancy eliminations. Not good news but my point is don't write off Oxy. What is Oxy's FMV leverage ratio, what is Anadarko's? What is their remaining debt capacity?
Anyone know what APC's BEP prices are on oil and gas, what Oxy's are? (Real BEP, not this thing with the hurdle rate of return included as a cost.)
Oxy is taking over COP's old space in the Energy Corridor in a year or two. The daily commute will be a step down for APC employees.
Maybe this billion dollar pissing contest will stall the deal and buy employees some extra time...
Al W. Is getting to much cash on the side from Chevron for this deal. But since it's his an the boards job to look out for shareholders, if they dont take the higher bid, there could be lawsuits from p-ss-d shareholders.
https://seekingalpha.com/article/4256207-anadarko-executive-cash-key-preferring-chevron-oxy?li_source=LI&li_medium=liftigniter-widget
They don't have to pay off the debt, do they? Wouldn't they just dilute their shares and increase their leverage?
OXY doesn’t have the 15 billion to cover the Anadarko debt. The Chevron buy out is a done deal.
It is all about the oil assets in the Permian. Those execs need to work out a better payout package. For the rest of you, just bend over and grab your ankles.