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Goldman Sachs Is Lead Advisor On Apache Purchase Of $7 Billion In BP Assets
And as the regulatory theater ends, both on Wall Street and on the bottom of the GoM, everyone gets paid handsomely for their participation, with the taxpayer getting the bill as usual. From the Apache press release:
Apache to Acquire BP Assets in Permian Basin, Canada and Egypt For $7 Billion
- Legacy assets complement existing operations in all three areas - Adds proved reserves of 385 million barrels of oil equivalent and approximately 83,000 boe per day of production - Substantial development opportunities and additional resource potential
...
Apache's financial advisors for these transactions were Goldman, Sachs & Co., BofA Merrill Lynch, Citi and J.P. Morgan.
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Clearly, I do not understand the legal concept of fraudulent transfer, but Goldman most surely does.
(Primal Scream)
Poor GS had rough Q2 earnings in the I Bkg unit (reduced IPO and M&A transactions), so they will do this business for almost nil to utilize their expensive talent and get this area moving again and hope for oligopoly in business. Also, they understand BP's recent reputation pain, so love being in cahoots - both big gov't lobbyist supporter too!
Plus they want to get up on the League Tables. Amazing that two companies in the same business need 4 investment banks on a deal.
None of this is bullish for BP, IMO. Having to sell assets to spend money on reparations means essentially selling off long-term cash flow to meet immediate expenses. Their future earning potential is now diminished.
Goldman Sachs is the best.
who do you want to see taking care of a deal of 7 bi.
Fannie Mae ?
Lehman ? oh i forget, instead of shorting the crap out of the housing mania (like
Goldman Sachs),
Lehman just put more longs and more leverage.
well i guess that's why Goldman is taking care of the BP - APA deal . not lehman.
Why two oil companies need GS to transfer some oil and gas assets is beyond me. What a crock.
They wouldn't if Apache had the money, but they don't.
You mean they are taking more of my tax dollars? Good. What ever I can do to help. Let's do the the math. $420/ Week - $ 390 Tax. Bafongool!! That leaves me $30 to feed my 10 starving kids.
4 investment banks who know next to nothing about valuing oil/gas reserves are needed to tell the directors of the two largest oil companies that the value of the reserves being sold are fairly valued for a $500 million fee.
They even made a movie about it
http://www.youtube.com/watch?v=ek43qsMoiUw
why is a hedge fund allowed to do investment banking activities?
+1 LOL!! Seriously. These guys unloaded common before the fall so what synthetic vehicle did they set up to take long exposure before they "bless" this deal and save the day without anyone seeing?
OK, I'm being proven wrong so far here. I thought for sure ex-US firms would end up buying non-US BP assets.
Is there no risk that Apache inherits major future liability similar to the asbestos fiasco etc.?? Or...God knows what Obama dreams up doen the road (Chrysler anyone?)...Really?
Big leap of faith IMveryHO.
Inquiring minds are wondering how/if this transaction affects BPT, Prudhoe Bay Royalty Trust, a separate legal entity and publicly-traded MLP collecting handsome royalties. Best case fantasy: Apache will somehow up the production and us royalty holders will enjoy increased payouts.
Oh, i know i am missing the main point of this article in pursuit of selfish profit. Bad Goldman, bad squid.
There. That's better.
the squid and bp are tight.
Wonder if Goldman loaded up on Apache calls last week (in the name of God's work, of course). Not that it could ever be proven...
Tyler, I have a question. I have been forwarding articles from O/H to a friend. The friend passed them on to his financial advisers ( 3 )
All have said that O/H is financed by George Soros. As I am not a fan of Soros, I am interested.
Is it true?
Do any of you know if it is true???
"shear don't slaughter" comes to mind
BP's dissapearing act.......sell all assets and no one will be able to find who to blame for the oil spill
Beware of Goldmans bearing Trojan oil fields.
I have always been surprised at how you can employ so many competing bankers and lawyers in any of these deals; how do you deal with the vanity and one-upmanship?
Unless they aren't really competing I suppose.
In which case I will shortly start my own financial advisor company -Kickback Associates. We will be very happy to assist BP in their disposals programme.
When disaster strikes, Goldman is there to ring the register!
I got a brand new chimney made on top, Made out of human skulls. Now come on darling let's take a little ride, tell me, Who do you love, Who do you love, Who do you love, Who do you love