Total debt at Chevron Corp., the second-largest U.S. oil producer, rose to $38.6 billion at the end of last year, $10.8 billion higher than a year earlier, the company said on Jan. 29. Chevron was downgraded by Standard & Poor’s on Tuesday for the first time in almost three decades.
Full article: http://www.bloomberg.com/news/articles/2016-02-02/oil-industry-s-plan-to-keep-investors-happy-borrow-more-money
Stock price is currently trading at about same level as 2007. That isnt much growth. Enron was trading near an alltime high after years of growth right before its stock price plummeted and the crows came home to roost.
It could be the news that the Saudis and Russians have reached an understanding on oil production rates.
CVX may have its debt problem, but how do you explain the stock price going up slowly? No answer for that one?
Those Enron buildings are haunted.... The occupants of those buildings have both ended up in financial trouble.
The fact we keep borrowing money to pay out the dividend is quite relevant to the topic of layoffs. Dividends make sense when the company is adding value through its course of business. It is a financial house of cards. The buzz at NAPE ( sorry it wasny a msec ago it was last week) was clearly that investors arent buying assets like the ones Chevron is trying to sell because they do not see the oil market turning any time soon. If Chevron cant sell assets, borrowing to pay dividends is an even worse practice. The 1Q16 results will be insightful. We still havent closed on the Tier2/3 GOMBU asset sale. It is quite possible that deal has fallen through. John Watson reminds me of Ken Lay. Lets hope Chevron is fully accounting for all of its debts and losses. When a business is run like a Ponzi scheme econmic downturns shine the light in dark places. I think of this every day I walk by the spot where the old Enron sign sat.
People posting dead wood posts because they've been laid off should help though.
Yes, let's post some more articles from 2 weeks ago, that's helpful since Chevron employees about to get laid off don't know how to use the internet.
Dead wood contributed too.
Thanks, Gorgon and Wheatstone.