Do you think the recent SLT layoffs/changes were “deep enough?”
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It’s true they out smarted Cenovus.
You have to hand it to COP, they played their cards well. They managed to unload their undesirable assets at a price that was well beyond their worth and laughed all they way to the bank!
As deep as a well in clearwater. So deep.
FCCL made sense and CVE had to pay fair value for it because COP knows its value being a 50% WI partner. Deep Basin on the other hand...6B???
Not to say the Conoco deal didn't come with some dead weight, but at $35/bbl the increased stake in FCCL could bring in an additional $1.9 billion in annual revenue.
It would be interesting to be a fly on the wall during the negotiations, but I suspect buying that 50% of FCCL would have been proportionally more expensive if the Deep Basin assets were excluded.
That's not a bad return over the next 25 years, if you look at the big picture.
Cenovus is being led by some idiots and these idiots love to promote bigger idiots to make themselves feel better.
The ConocoPhillips deal set you up to fail. You don’t have deep enough pockets to make this work.
Not deep enough. But just watch, more layoffs in 2018 and more divestitures. This ship is going down!
Anyone with a hand in the horrific Conoco acquisition should’ve been sent packing. The new CEO is probably doing just about all he can to clean up the mess.