Occidental Needs Synergies to Make Anadarko Price Work, Stoeckle Says

The transcript discusses the bidding war between Occidental and Chevron for Anadarko, with Occidental's surprising $276 per share offer. Mark Stoeckle, CEO of Adams Fund, shares insights on the implications of Occidental's bid, highlighting concerns about doubling the company's size and operational challenges. The market's negative reaction to Occidental's bid is noted, along with financial leverage concerns. Future considerations include Occidental's plans for Anadarko's assets and potential synergies.

What was Occidental's offer per share for Anadarko?

• $65

• $300

• $150

• $276

Why was Mark Stoeckle surprised by Occidental's bid?

• He thought Chevron's bid was too high.

• He believed it wasn't in Occidental's best interest.

• He expected a higher bid from Chevron.

• He thought Anadarko's assets were undervalued.

What is a major concern for Occidental in acquiring Anadarko?

• Regulatory hurdles

• Insufficient financial resources

• Difficulty in integrating and doubling company size

• Lack of experience in the oil industry

How does the market view Occidental's bid for Anadarko?

• Positively, with increased stock value

• Negatively, with decreased stock value

• Indifferently, with no change in stock value

• Positively, but with caution

What financial aspect of Occidental is a concern post-acquisition?

• High leverage and debt levels

• Lack of free cash flow

• Decreasing oil reserves

• Increased operational costs