What else can you do with the money?
on Mar 05 in Financial Market, Oil Market tagged by Trevor HicksWhen I first raised the discussion about Chevron’s $5 billion bond issue, I mentioned three broad categories of actions they could take with the money: alter capital structure, purchase assets and purchase other companies outright. I then made another post describing how Chevron itself might be an appealing takeover target.
Bloomberg published an article describing speculation that ExxonMobil is likely to be more of an asset buyer than company buyer. In particular, the article mentions that Exxon is likely to pursue equity stakes in assets operated by cash strapped national oil companies. This serves the dual purpose of both adding assets at cheap prices from a motivated seller as wells perhaps extending access to promising areas for exploration such as Brazil.
Every company’s situation is unique and they will evaluate their options based on the assets that complement their existing portfolio and the best possible price they can pay.
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I am an IT and software development leader with extensive experience in oil and gas exploration and production software technology. My passions are in process design and execution as well as employee recruitment, development, motivation and retention and in collaborating with business partners and translating business needs into engineering and technology plans.
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