The Winners Curse of Purchasing Anadarko
https://www.bizjournals.com/houston/news/2019/05/31/op-ed-purchasing-anadarko-is-a-bad-move-for.html
Published in the Houston Business Journal
May 31st, 2019
A quantitative analysis on the purchase of Anadarko by Occidental Petroleum
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Article excerpt:
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A deal at any price is not a deal worth pursuing. Occidental Petroleum (NYSE: OXY) and Anadarko Petroleum Corp. (NYSE: APC) have vastly different trend lines, and an overly leveraged purchase will pull Oxy in the wrong direction.
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Previous to the announced deal, Anadarko stock hovered near its multiyear lows largely due to its five year $30 billion capital expenditure, resulting in 50 percent less proven reserves. During this same time period, Oxy spent $25 billion with a 50 percent production increase and a dividend payout six times larger than Anadarko.
Venture Capricorn is a boutique investment bank specializing in sell-side advisory for Middle Market Companies.
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We are based in Austin, Texas with clients both domestic and international.
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