At what price does Chevron purchase Occidental? Occidental market value has now fallen below the Anadarko purchase price, excluding debt.
Occidental and Anadarko's combined assets must be worth at least as much as Anadarko's assets alone, including debt.
10 replies (most recent on top)
Enterprise value = equity + debt. We can not evaluate looking at just equity. Multiple people commented the same at Chevron, as the Oxy stock price continues to slide, but that is only half of the story and not enough to make a decision.
Chevron is currently in reorg mode, looking to shave expenses and personnel. We won’t be looking at an Oxy takeover at this time, not since Oxy shot themselves in the foot, for lack of a more appropriate word. They have too much debt, which makes acquiring the company a bad move right now.
Oxy has way to much debt for Chevron to even consider taking over. Additionally much of what Chevron seen value in is now gone apart from some Delaware Basin acreage
Pro forms OXY is trading at an EV/EBIDAX. That's very rich. No way somebody takes a run at them. They were a better value before their APC bid.
For reference. Many Delaware basin producers are trading at 4x EV/EBIDAX
If we take over a company it wont be occidentally.
I agree - $30/share or so should make it palatable to a buyer. Probably not Chevron, of course.
The Anadarko deal messed everything up for Chevron. The CEO had planned to cut at least 4000 people and he was going to use the merger as the reason. Now, he just has 4000 heads he needs to cut.
I am not superstitious but seriously this stock can make u disappear in 6 months time.
A giant black hole,...........may the force be with you.
Under $30 per share would be ok if they haven’t sold everything of value by then.
That is a big NGH. Never Gonna Happen.