Author Topic: OXY - Occidental Petroleum  (Read 16672 times)

πv

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Re: OXY - Occidental Petroleum
« Reply #20 on: March 09, 2020, 01:57:55 PM »
Things got interesting today! 


πv

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Re: OXY - Occidental Petroleum
« Reply #21 on: March 09, 2020, 03:11:42 PM »
Speculation or Investment?

Anyone looking at buying this after today?  Dividend might go away for sometime, but 5-10 yr results may be worth the wait.   It has been on my radar for awhile but with today's valuation I am considering it.  BRKs stake could prove useful if additional funding is required to meet debt obligations and after watching the interviews both Buffett and Munger like the Permian basin and the company. Vicki Hollub appears solid and the Anadarko deal makes sense; although the leverage is notable.  So it really boils down to if they can meet their debt obligations and if they will need additional capital, which BRK can provide (at a premium of course!).  Time to pull out the calculator and financial statements.

txvalue

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Re: OXY - Occidental Petroleum
« Reply #22 on: March 09, 2020, 03:21:50 PM »
You know that somewhere a CVX exec is kicking around buying out OXY and Anadarko for less than OXY paid for Anadarko.

πv

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Re: OXY - Occidental Petroleum
« Reply #23 on: March 09, 2020, 03:35:01 PM »
I am sure they are :) Although is there support for a deal like that at this time?  Would shareholders and the board approve?  Interesting times.

bizaro86

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Re: OXY - Occidental Petroleum
« Reply #24 on: March 09, 2020, 03:37:59 PM »
You know that somewhere a CVX exec is kicking around buying out OXY and Anadarko for less than OXY paid for Anadarko.

Maybe they'll wait until the price for both is less than the break fee they received.

Liberty

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Re: OXY - Occidental Petroleum
« Reply #25 on: March 10, 2020, 09:05:07 AM »

compoundvalue

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Re: OXY - Occidental Petroleum
« Reply #26 on: March 10, 2020, 09:24:59 AM »
Thatís the prudent thing to do at this point, on a timely manner too

eatliftinvestgolf

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Re: OXY - Occidental Petroleum
« Reply #27 on: March 10, 2020, 09:26:43 AM »
Maybe the board read buffett's letter on the power of retained earnings.  :)

thepupil

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Re: OXY - Occidental Petroleum
« Reply #28 on: March 10, 2020, 09:34:25 AM »
Maybe the board read buffett's letter on the power of retained earnings.  :)

well played.

this makes me a little more confident in potentially dipping toes in the credit. the long and low bonds are rallying as this is a credit positive move, but if those start falling again, I could be interested. there is certainly a chance that all bets are off in o&g and the industry needs to drastically shrink, but buying some unsec's at 60 cents that would create this assets at a sub $30 billion EV starts to look attractive if you agree that these assets have some economic value. being senior to WB helps too (though he could always prime you later).

scorpioncapital

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Re: OXY - Occidental Petroleum
« Reply #29 on: March 10, 2020, 11:02:06 AM »
You could also sell puts at 7.5 very short term. It seems there is panic in the pricing.