The all stock transaction deal between Noble and Chevron was announced a week before CVX announced their second quarter earnings. It wasn't just any quarterly report, it was the worst quarterly report Chevron has had in several decades. It lost over 8 billion dollars in just one quarter. As a result, the stock dropped and since NBL stock is now tied to CVX stock per the deal, NBL stock dropped as well. NBL stock price closed the week below $10/share. There is now no sales premium for NBL shareholders. Noble pays millions of dollars every year for a staff of financial analysts plus has a dedicated M&A staff. In addition, Noble has access to financial publications and business data bases plus outside consultants. So, did Noble know in advance that Chevron was going to have bad earnings announcement and rushed to do the deal before the SHTF? Chevron's management obvious knew Chevron's stock was going to drop post 2nd QTR announcement. Was Chevron's management playing the Noble exec's and BOD for the chumps they really are? Did the Noble execs want the golden parachutes so bad they were willing to abrogate their fiduciary responsibilities to maximize shareholder value? Either way it is an outrage. Noble management has screwed over the stockholders and thrown all the Noble employees under the bus.
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CVX here. Most of ya’ll should be ok. In our townhall, CEO said that DJ and Israel will be plug and play. Some overlap in the Permian, but we’ll need a lot of those people. If you are corporate or a support function, the outlook is not good. CVX is already cutting those areas deep and there is no desire to add people unless it is absolutely necessary. The good news is that CVX is kind when it comes to severance. Management has its issues like anywhere else, but they generally treat you right and don’t sh!t on you when they have to let you go. So, if you are Corp or support, just keep taking the money until they figure out what to do.
Everything mentioned in this string points to a Board that was asleep at the wheel. Wonder what their golden parachutes look like.
Yes, when Chevron announced their $8 billion loss they said, don't worry we got Noble on the cheap and that will help mitigate the loss.
CVX here, NBL buyout was necessary to plug the -$8.3B hole we reported so 2020 won't look so bad for next year's 2020 bonus payouts. Given the buyout closes by YE20. As CVX just wrote off $10B of gas in Pennsylvania, why did we buy more gas in Israel- I have no idea
Yep they screwed the share holders but then again what’s going to be done about it.
If DS had done nothing as CEO, Noble would still be a viable company today. Instead he tried to "grow" the company through ill timed acquisitions that were grossly overpaid for. In just a few years he destroyed a company that had been around for 100 years. Now he gets a huge payoff for one last deal that benefits no one but himself and the executive team.
Where have you been for the last 10+ years? Did you actually think all the corporate acquisitions using share swaps, the new share offerings and all the write-downs where driven by the Noble execs exercising their "fiduciary responsibilities"? Those were all dilutions, benefiting the execs by extending their tenure, while undercutting the existing stock holder value. As far as DS, KF and the rest were concerned this company was simply a cash cow. They milked it for years and now that it's getting aged, they're lining their pockets one last time by selling it to the glue factory. The employees? As far as the execs are concerned, they are just fleas on the carcass.