03-07-2020, 06:47 PM
(03-07-2020, 04:37 PM)EricL Wrote: Occidental, in May of 2019, bought Anadarko for $57 billion. Now Occidental is worth $25 billion. This is one of the great wealth destruction deals of all time.I left my CVX position when OXY topped their bid. I was afraid they were going to up their offer. I prefer they do their M&A at the bottom of the cycle. The discounted asset sales are too frequent to do otherwise. I ended up with BP, but it's hard to know which oil major is right. The dividend payout rates are all over the place because the profits are so choppy year to year. OXY debt may soon surpass their market Cap if it isn't there already. The rest of the majors aren't exactly debt free. The dividend cut rumors will be flying around soon. It's just the oil patch and all you can really do is wait it out. It's way too late to sell any of them. Just have to look at them as CDs and tend to the rest of your portfolio until oil prices see their next catalyst.
If oil drops to the $30s for any extended time, I think OXY will have to cut the dividend. CVX may end up getting APC in the end after all, and OXY along with it, for half the price they would have spent a year ago for APC alone.