This isn’t a takeover. It is a takeunder.
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look at age of top management.
The analysts covering this have pretty much agreed that this deal was Noble “ throwing in the towel”. Noble just giving up...
Noble was sold on the cheap because management wanted to exit stage right before all the chickens came home to roost. They wanted that golden parachute to take them into retirement. They were risk adverse and did not want to struggle through this low price environment and have to count on WTI prices improving. No, they assumed the price of oil would be $40 forever and decided the best option is to bail out. Chevron just needs to dilly dally with the US onshore for a couple of years and by then the Permian could be very profitable again. If not, the international assets will pay for everything anyway.
Because our debt had us checkmated. The next 1-2 years would’ve been breaking even at best, followed by large debt obligations a few years down. Our stock would’ve collapsed, just as Chesapeake’s did. And with tighter credit, and no investment, no way to fund new drilling.
The reality is Covid didn’t sink us. Poor decisions made a few years ago did. They rolled the dice with TX acquisitions and came up short.
At least we get to join Chevron. Beats going bankrupt in 3 years.