Chevron plans to buy Anadkaro Petroleum. I tend to follow the energy markets close than most, and my first reaction to this story is "wow." But the synergies might be of benefit.
Also, my comments on Telsa. I don't generally get caught up in hype. Telsa doesn't make money, so it's not on my radar. And while I support electric vehicles and other alternative sources of energy, I'm not so short-sighted to see even these programs have unintended consequences. For example, lithium, which these batteries are made from, is a toxic material. How to you dispose of it in a environmentally save manner?
Chevron (NYSE:CVX) plans to acquire Anadarko Petroleum (NYSE:APC) in a stock and cash transaction valued at $33B, or $65 per share, enhancing its Upstream portfolio and strengthening its shale, deepwater and natural gas resource basins. Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each APC share. The deal anticipates annual run-rate synergies of approximately $2B, and will be accretive to free cash flow and earnings one year after close. If approved, Chevron said it also plans to boost its annual share buyback program to $5B from $4B. CVX -2.4%; APC +33.7% premarket. - From Seeking Alpha
Also, my comments on Telsa. I don't generally get caught up in hype. Telsa doesn't make money, so it's not on my radar. And while I support electric vehicles and other alternative sources of energy, I'm not so short-sighted to see even these programs have unintended consequences. For example, lithium, which these batteries are made from, is a toxic material. How to you dispose of it in a environmentally save manner?
Tesla (NASDAQ:TSLA) has begun leasing its Model 3 sedan in the U.S., in a financing option that would increase the EV maker's base. However, customers will not have the option to buy their cars at the end of the lease, as the company intends to use the vehicles for its long-planned Tesla Network ride sharing program. Tesla has also halted online sales of its $35,000 Model 3, meaning the lowest-priced version available on the net for order is now the $39,500 Standard Plus (which includes Autopilot). TSLA +1% premarket. - Seeking Alpha
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