We waited.
We waited when news broke about a potential Occidental Petroleum (OXY) transaction to acquire CrownRock a few weeks back (Nov. 29 Wall Street Journal). A “preannouncement” to not only test the market, but to spur counter-bids and see if CrownRock can garner a higher bid as it goes through the M&A process.
We waited because we needed to see the exact details of how this transaction would work. What we did know, however, was news of this acquisition was already a “narrative breach.” For management teams, we judge them on strategy, operational/financial execution, and consistency. That last piece is now being put in doubt after hearing the news, and recalling this discussion in the Q3 conference call, which had occurred only a month before. Given the timing, OXY likely would have already begun its due diligence on CrownRock. So what’s the deal?
So if you “don’t have to”, why now? That’s why we waited . . . because it sure better be a good answer.
Was it?
Here’s what we’ve learned . . .