If you think that all that has been done is building a “nice pad” you are much farther removed from the project than you think
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most could be world class with investment. so we value them assuming those will happen when in reality the improvement projects get cut or deferred and we slash their site budget since they’re on the bubble, making them even less valuable. also known as death spiral.
Problem is we think all our assets are world class and worth way more than market is willing to pay. They have been trying to sell assets for years, not just in refining but won’t admit they aren’t going to get the price they want. Now we may be forced to sell at rock bottom prices as we are desperate for cash. Buy high sell low seems to be our strategy.
No cash flow to finish a small project in the grand scheme of things? Lol. Are you a troll?
Give it to mid next year, cash will be rolling in again (not to support dividend and suite of projects)
Ok excuse me until what 2023? Let me hold my breath. They built a nice pad but that's it. They rushed the work to finish this year because no work next year. Unless market has a significant turnaround xom will not have the cash flow to finish it. Expanding crude capacity when demand shrinks long term is not viable. Then again what do I know I'm just an anon.
Blade is surely not delayed in definety. The ignorance in this site is laughable.. Literally have to take everything with a grain a salt.
“Crude C is stalled indefinitely” - well that’s just not accurate
I think you’ll find we want to sell things that no longer have any value. Offers will be essentially just for the value of the inventory as the assets make 8% return, so there’s no value as the risk isn’t worth the reward. Just like the upstream, we’ve never cleaned house and now it’s too late. Give away / shutter is the reality for most marginal assets and we have way way too many of those. Look how much more upstream production and downstream capacity we have currently compared to CVX and we are the same value. Reckoning has come.
@rgr+17n2hnn8 incorrect, they don't make too much money. Refinery hemorrhaging money with a stalled project, basic chemicals barely breaks even, specialties although profitable haven't really had significant investment in years. Don't be surprised since xom could get some much needed cash from this old site.
BMCX will get sold after Billings. Their chemicals is small and subpar relative to Baton Rouge and Baytown. Plus they are heritage Mobil and as you know that is what xom seems to sell first(Chalmette, Torrance, etc.) Crude C is stalled indefinitely.
BPEP will not be sold though.
You sound like you aren't familiar with Billings refinery. It's been on the market for 10 years as it is not an integrated asset tied to chemicals or an upstream field. We have invested less capital than depreciation in the site for 20 years (I e. No discretionary spend).
Our company is desperate for cash and Billings is borderline cash negative in the worst market environment so may still fetch a decent market value. There are local smaller refiners in the region that have money due to strong hedging programs, are still cash positive, and may be interested. Look at the regional balance sheets of P66, Cenex, Marathon.
Torrance made money still over 5 years when it was sold. Making money is not an indication of a sale.. reliability, asset integration, and opex competitiveness are strongly evaluated in the decision.
Who is going to buy an unprofitable refinery that may be shutdown? If it makes money, it won't be shutdown nor sold.
Billings likely to be sold.
Farley. Recently cancelled much needed H2 feedstock project, can be converted to terminal for products from expanded Antwerp and Rotterdam refineries.
Singapore is limping like a dog
Probably not Beaumont, their chemicals integration makes too much money. Plus, it's an outlet for exxonmobil upstream production. Too important to shutdown.
All will be music to a lot of citizens ears
Altona
Any nit connected to chemicals.....