Since May 1, 2016, the Energy Select Sector SPDR is down more than 12%, while Occidental has fallen nearly 40%; the S&P 500 is up 42%.Sign up for free newsletters and get more CNBC delivered to your inboxData is a real-time snapshot *Data is delayed at least 15 minutes. "Usually Buffett goes with Charlie Munger before he does a deal. Additional factors related to the transaction between Occidental and Anadarko appear in the definitive proxy statement/prospectus that is a part of Occidental’s registration statement on Form S-4, as amended, which was declared effective by the SEC on July 11, 2019, in connection with the transaction between Occidental and Anadarko.Because the factors referred to above could cause actual results or outcomes to differ materially from those expressed or implied in any forward-looking statements, you should not place undue reliance on any such forward-looking statements. Moody’s Investors Service said a “weakly positioned investment grade rating” is the most likely for Occidental.If Hollub can sell the offshore business and close the deal with Total, she could hit a $10 billion to $15 billion divestment target, said Matt Sallee, portfolio manager at investment firm Tortoise Capital Advisors. But she shouldn’t count her winnings just yet. He didn't even bother on this one.
Occidental Petroleum completed its roughly $38 billion acquisition of Anadarko Petroleum Thursday in a mega deal that combines two of the … HOUSTON (Reuters) - Occidental Petroleum snatched up some of the richest shale oilfields in Texas when it beat out rival Chevron Corp in a bidding war to acquire Anadarko Petroleum…
The market seems to put a higher probability on Anadarko going with the original Chevron deal than I did …
Occidental’s midstream and marketing segment purchases, markets, gathers, processes, transports and stores hydrocarbons and other commodities. They don’t have that knowledge in house,” she said.“The longer they take” to reduce debt from the deal, “the longer they stay in the doghouse with investors,” said Rowland.Rating firms are forecasting a debt downgrade because of the deal, though none expect Occidental will fall into junk bond status.
While the price of oil is one factor weighing on the sector, Occidental in general is also struggling after outbidding Chevron (CVX) to acquire Anadarko.
Effective after the end of trading today, Anadarko’s common stock will no longer trade on the New York Stock Exchange.Factors that could cause actual results to differ and that may affect Occidental’s results of operations and financial position appear in Part I, Item 1A “Risk Factors” of Occidental’s Annual Report on Form 10-K for the year ended December 31, 2018, and in Occidental’s other filings with the U.S. Securities and Exchange Commission (“SEC”).
Her challenge will be to balance such sales with the need for their cash flow to pay debt and dividends.“It just adds to the risk of a deal.
Potential buyers would be the handful of large companies with deepwater experience, including Royal Dutch Shell, Exxon Mobil, Total and Chevron.Hollub already has one big sale lined up: France’s Total SA agreed to pay $8.8 billion for Anadarko’s oil-and-gas producing assets outside the United States, including its biggest future expense, a multibillion-dollar liquefied natural gas project in Mozambique.“An acquisition is more often viewed as a confession of poor drilling locations and a failure of prior strategy,” Dittmann said.Reporting by Jennifer Hiller; Editing by Brian Thevenot“We will make this work,” Hollub vowed.
On April 12th it became apparent why: Chevron, an oil major five times Occidental’s size, announced a $33bn deal to buy Anadarko instead (and assume its $15bn in net debt). He just did the deal in 90 minutes. The longtime activist investor — known for agitating for change at his investments — also blasted the deal for its lack of shareholder input.Got a confidential news tip?
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