I still have some oxy, yes they have troubles but for the time is in their favor at the moment, they will be able to generate billions in extra cash flow. Here is over simplified calculations based on what oxy management hinted in one of their previous presentations that each extra $1 in oil they are able to generate $250M - Let's be conservative and take $200M instead of $250M and say oxy's breakdown is somewhere in $40-45. That leaves $30 in surplus. 30*200= 6000. That's $6B extra cash ladies and gentleman. At $250M that's will be $7.5B. They had $35.7B in debt and $2B in cash in last reporting( ifI remember correctly). Oil stay at these levels for a year and no one will talk about the debt anymore and I don't see oil going below $60 anytime soon unless we have another lock down and at that time we will have a lot more to worry than oxy's debt. Not to mention, they are the leader in some of the carbon neutral tech they are developing.
I think it's worth to take the chance with oxy. The risk to reward to huge.
I am reading reports that the airlines aren't able to handle the kind of traffic they are experiencing for July 4th weekend and we are still not fully open.
I think it's worth to take the chance with oxy. The risk to reward to huge.
I am reading reports that the airlines aren't able to handle the kind of traffic they are experiencing for July 4th weekend and we are still not fully open.