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fearneaux1
LSU Fan
La.
Member since Jun 2006
108 posts

re: OXY buying APC for 57B
In Africa now and was desperatly hoping Chevron would counter. Don't blame them one bit.

We are the first casualties of the buyout and APC hasn't told us one thing. Feeling really disgusted right now.


thegreatboudini
McNeese State Fan
Member since Oct 2008
4157 posts

re: OXY buying APC for 57B
quote:

Take that cool extra $1B and put it towards Concho, Diamondback or Parsely.



Can’t see them putting all of their eggs in the Permian basket. I think diversification, even if just in NA Unconventionals, carries legitimate weight.

My long shot, EOG.


ragincajun03
LA-Lafayette Fan
Energy Capital of the World, TX
Member since Nov 2007
11686 posts

re: OXY buying APC for 57B
quote:

My long shot, EOG.


Definitely a possibility. EOG has a ton of eggs in the Permian, especially after the acquisition of Yates 2 1/2 years ago.


TigerDog83
LSU Fan
Member since Oct 2005
6691 posts

re: OXY buying APC for 57B
Might want to brush up on your French being these assets are getting ready to be owned by total.


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thegreatboudini
McNeese State Fan
Member since Oct 2008
4157 posts

re: OXY buying APC for 57B
quote:

Definitely a possibility. EOG has a ton of eggs in the Permian, especially after the acquisition of Yates 2 1/2 years ago.


Yea they’re a big player in the Permian, but not even close to a pure player.

Since 1/1/2018 they’ve laid 6,500+ laterals, of which only ~11% has been Permian, ~10% has been EF, and ~77% has been PRB/Nio/Mowry.




GREENHEAD22
LSU Fan
LafayettebywayofBush
Member since Nov 2009
12953 posts
 Online 

re: OXY buying APC for 57B
Damnit, APC is falling, didnt see that coming. Any reason there should be a bump back to 76?

So never had a company I have stock in get bought. I am assuming once its final my account will be credited with the right amount of cash and OXY stock?

I would be getting the OXY stock at around the 52wk low price but not sure it is a a stock that I want.

What is the boards feeling?
This post was edited on 5/10 at 9:44 am


castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
57709 posts

re: OXY buying APC for 57B
They sale is stock+cash. So whatever the the oxy stock does, the apc stock will follow proportionally to minimize any possible arbitration.
So the decision is whether or not you believe in the oxy stock. If you do, let it ride, if you don't then sell.

The above is just very general advice, one very important aspect is tax. You should take that into consideration.


GREENHEAD22
LSU Fan
LafayettebywayofBush
Member since Nov 2009
12953 posts
 Online 

re: OXY buying APC for 57B
Yea Oxy isn't a company I am well versed in. I do have concerns over them offloading the GOM assets without losing their ass.

I may be missing something, how does the tax aspect change? Please excuse my ignorance.


castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
57709 posts

re: OXY buying APC for 57B
If you sell now, it doesn't change, it's just like selling any other stock. So you'd have to consider how long you've held the stock and if you are realizing any gains or would be losing money.



GREENHEAD22
LSU Fan
LafayettebywayofBush
Member since Nov 2009
12953 posts
 Online 

re: OXY buying APC for 57B
The majority of the stock was purchased in 16 however I did pick up some more a month or so back.


What is your feelings about Oxy long term?


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castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
57709 posts

re: OXY buying APC for 57B
I think their management is capable of executing the plan that they have laid out, but are commodity prices going to give them enough time to get there?


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crazycubes
Member since Jan 2016
4585 posts
 Online 

re: OXY buying APC for 57B
quote:

I do have concerns over them offloading the GOM assets without losing their ass.

I’m hearing Oxy will sell the Anadarko Deepwater GOM assets to Shell?


GREENHEAD22
LSU Fan
LafayettebywayofBush
Member since Nov 2009
12953 posts
 Online 

re: OXY buying APC for 57B
Not saying you are wrong but I dont see why Shell would make that deal. The P&A liabilities coming up alone are a major drag on the GOM assets. If I had to guess OXY is not going to piecemeal it out, whoever takes it will have to take it all and there is a lot of end of life assets that will be coming with it. IMO the companies that can afford to pay what its worth are not going to want to mess with it and the ones that do cant afford it.


unclejhim
LSU Fan
Folsom, La.
Member since Nov 2011
1798 posts

re: OXY buying APC for 57B
Well I for one just bought 300 shares of OXY @ $54.26. Stock has a yield of $3.12 = 5.76% and a 12 month target prices of $72.00.


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TJG210
LSU Fan
New Orleans
Member since Aug 2006
25855 posts

re: OXY buying APC for 57B
quote:

The P&A liabilities coming up alone are a major drag on the GOM assets.


Why wouldn’t that be figured into the ultimate sales price?


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GREENHEAD22
LSU Fan
LafayettebywayofBush
Member since Nov 2009
12953 posts
 Online 

re: OXY buying APC for 57B
How did you come up with the 250M abandonment number? Another facility, smaller than the APC ones, that is close to being pulled is projected to be a 200M job. There is 3 maybe 4 APC facilities that will have to come out of the water in the near future. The 250M is just well P&A cost?


hubertcumberdale
LSU Fan
Member since Nov 2009
902 posts
 Online 

re: OXY buying APC for 57B
This thread title needs an updating baw


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polizei11
LSU Fan
Houston
Member since May 2009
1068 posts

re: OXY buying APC for 57B
Net to APC (Oxy).


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lsugradman
USA Fan
Sumatra, Indonesia
Member since Sep 2003
6884 posts
 Online 

re: OXY buying APC for 57B
Highly doubtful. Shell is trying to consolidate in the Norphlet (East) and Western Wilcox. Don’t see why they would want some of those old APC assets.


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lsugradman
USA Fan
Sumatra, Indonesia
Member since Sep 2003
6884 posts
 Online 

re: OXY buying APC for 57B
Yeah the total expected abandonment costs for APC GOM assets over the next five years is in the 800 MM range from what I recall.


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