Good or bad move? What are your thoughts?
9 replies (most recent on top)
P66 to COP - "You miss me yet ?"
As a shareholder this is single worst move that COP has made. Right now, they are fully exposed to the low oil price and no way taking advantage of the downstream. While Exxon, Chevron, Shell are down also, at least they have downstream to buffer them from steep losses.
There is a reason for integration: both sectors balance each other out depending on which one the commodity pricing cycle favors. COP had a huge downstream sector that could have helped their upstream sector through this down cycle. Now they are up the creek without the proverbial paddle. And P66? They're printing money. This was a spectacularly BAD decision.
Bold but stupid move by ConocoPhillips. The main reason why 2008/2009 CoP still stable during the crises were because of the downstream help, and then the upstream too cocky to let go the downstream while oil price was higher and declare with "it's time" word which is very very stupid. Now P66 is not part of us again, and we will be in difficult time to pick us up under this circumstances. Again, stupid move from CoP...
EXACTLY!
Perhaps the single worst decision in the history of either ConocoPhillips or marathon. It was short sighted in that it only benefits the upstream company when prices are rising. It is the equivalent of dropping your car insurance so that you can afford to buy a more expensive car.
Actually Marathon made the move first and is having similar results. Anyone who knows the business could have seen it coming. Downstream always provided the cash flow to fund the big Upstream projects.
No other integrated country made a similar intelligent move. Ask the decision makers to return their bonuses, and distribute it among the employees and shareholders who suffered due to this decision.
Good move for P66.