I posted this a while back and after reading your remarks on the cvx board I thought I would repost it. I don�t know if you read it already but it�s what I think about cvx.
Do you know what irks me about cvx?
They could have bought both the nng pipeline and the UK storage facilities from dyn.
If cvx was in the bidding the selling prices for both assets would have been raised. And it would have been a huge PR move. The street would know that cvx was still working with dyn to find a beneficial profitable agreement for both parties. Also both assets would have fit in perfectly with cvx�s business and both assets would have paid for themselves very quickly. So it would not look like cvx was throwing away good money after bad. Those assets were genuinely great investments.
Do you think cvx shareholders want to hear that dyn does not have to pay cvx because of a loophole in the contact? If cvx had helped dyn out maybe cvx would not have had to take a billion dollar write down on their dyn investment. All cvx had to say to the street was yes the 1.5 billion that is due next year can be reworked or renegotiated. If that had happened the banks would have known that cvx was there in dyn�s corner. And I don�t think dyn�s credit would have been slashed to junk and then again to below junk.
And it is not like cvx share price would have been hurt much more than it is now. After all cvx�s share price has been falling on it�s own as of late, I think it is at it�s 52 week low right now.
Maybe cvx is planning something else with dyn for the future a surprise maybe. But if not I think they made a bad business move by not helping dyn when it needed it the most.
So let me ask you this.
If you were a cvx shareholder would you rather
a- have dyn go bankrupt and lose your entire multibillion-dollar investment?
b- help out dyn until it hits 20-30 dollars a share and cash out either at a profit or a small multimillion-dollar loss?
Those assets that sold were grade A investments. If cvx was involved in the biding the prices would have risen to true market value prices. Cvx did not even need to buy them, all they had to do was show the street that they were there in a bidding war with other companies. Instead dyn sold them at bargain basement prices because they had to in order to survive!
Lots of reasons why CVX had their hands tied on these issues. With the CVX stock price taking a hit already cause of DYN, and hurting investors, no way they could risk further damage. It was all about damage control, and not throwing good money after bad. DYN was just too hot. If the money could in anyway be related to bailing out DYN it would be a big negative, and obvious CVX was diverting from their own business plan of producing oil & gas. Yes, DYN could have maybe gone BK, averting it with CVX help. The problem is enough CVX funds were already pumped in, they couldn't add in more no matter what. Can you imagine the damage if you continue to bail DYN and they still eventually go BK. Now the losses are even more staggering. CVX couldn't take this risk, a risk that could possibly bring them to their knees.
NNG and Rough are not core business for CVX. No way CVX funds are spent on these assets, even if for resale purposes later on. Also, CVX isn't going to play games to bid up the price of these assets. Just not CVX style, being actually quite conservative, and dedicated to their own business model. Also, buying NNG would have been strange since CVX funds were already used to buy it once, would have been like buying it two times.
We should ask CVX for only two things right now. 1) Renegotiate the $1.5B quickly and in a way to appease CVX shareholders 2) publicly support a company in which you hold 26.5% interest. No $$s needed, just stop acting like some 800 lb. gorilla. Start pumpin like the rest of us are doing out here. If nothing else, just a little "Go DYN GO" from them.
CVX will come around on this one, trust me. Whatever is ethical CVX will do, including whatever it takes to boost their 26.5%. I honestly think it comes down to DYN making it on their own, with such a strong foundation built, that nothing can topple them. They got to do this on their own, this way their destiny they will control. Actually, doesn't that make sense? That's what I want, that's what CVX wants to see. Remember what Bruce W said, no opaqueness anymore, total transparency. I'd rather their stock be $1.12 because that represents actual DYN value to shareholders. Sure, it could be $3-$5 because CVX pumps in $s, talks some BS, and deceives the public making the relationship appear to be something it's not. That's the DYN of old, I want the new DYN, a DYN I can understand and trust, not tied to someone else's good or bad fortune. No mystery, just working hard, being highly ethical, and taking care of its customers, employees, and shareholders. Simple, clean, and transparent. What you see is what you get. I can live with that. We will get to $3 soon enough, it will be the DYN way, with DYN earnings, and no one else's.