Chapter 543 Unocal Financing Plan

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"Fifteen minutes is over! You must have some insight into Unocal's operations... ”

"I have some questions?" interrupted Blank Finn.

"Mr. Finn, please listen to me before you ask any questions. There is plenty of time today, and we have plenty of opportunities to discuss our respective issues. ”

Blank Fein frowned slightly, but didn't say anything more.

"Now we at Unocal have $65.48 billion in total assets and $18.34 billion in liabilities. Among them, liquid liabilities were US$3.17 billion, convertible bonds were US$5.72 billion, asset-backed bonds were US$6.13 billion, and medium and long-term bank loans were US$3.32 billion, and the financial position was very healthy. In addition, in the first quarter after the merger of Enron Pacific and Unocal, we reported quarterly revenue of $7.67 billion and net income of $1.34 billion. For the whole of 2003, we were able to achieve more than $30 billion in revenue and $3.46 billion in net profit. ”

“… In terms of business, Unocal is mainly engaged in oil exploration and development, and currently has 4.37 billion barrels of oil and gas reserves. After Exxon Mobil, Chevron Texaco and ConocoPhillips, it is the fourth largest oil and gas company in the United States. In the next three years, we plan to acquire more oil and gas assets and increase investment in oil and gas exploration in Kazakhstan, Tajikistan and other developing countries, including Africa, with the aim of bringing Unocal's oil and gas reserves to more than 10 billion barrels by the end of 2006. ”

“… About Unocal's valuation. In view of the current situation of rising oil and gas resource prices, oil companies' revenues have increased, and the price-earnings ratio has continued to rise. Unocal should get a 16x P/E assessment and get a market cap of $55.36 billion. Given that oil companies such as Mobil and Chevron are already close to 18 times P/E, my assessment standard is not too high, and it has already given you plenty of room to make a profit. ”

“… Regarding financing, I will give 25% of Unocal shares to you for your own distribution. In terms of listing underwriting, Merrill Lynch and Goldman Sachs each bear 30%, and we Phoenix bear 40%!"

"Mr. Guo, I remember when we first talked about going public, we were the only underwriters, Goldman Sachs and Merrill Lynch?" said Blank Fein.

"Mr. Fein, there is a saying that 'planning is not as fast as change', Phoenix also has investment banking business now, of course I have to take care of my own company!" Guo Shouyun said calmly.

At the beginning, he promised to let Goldman Sachs be responsible for the listing underwriting of Unocal so that they could help him acquire Unocal Corporation, but because Stephen Bryan took his cronies from Goldman Sachs to Phoenix, Goldman Sachs' attitude began to go against the grain, so that Unocal's acquisition was full of twists and turns, if he hadn't chosen to marry the Roosevelt family and actively campaign, whether Unocal could bypass Chevron's obstruction and be successfully taken down by himself is a question.

Based on this alone, if the two parties had not signed a contract, and he had spoken first. Goldman Sachs has long been excluded from this meeting.

"That's not what Mr. Guo said when he signed the contract. ”

"The contract only stipulates Goldman Sachs' qualifications as the underwriter of Unocal's listing, but does not specify the specific percentage. If Mr. Finn is not satisfied, he can also break the contract, and I promise not to charge liquidated damages!"

With his current status and strength, he no longer has to be afraid of a Goldman Sachs!

What's more, the current Goldman Sachs is not the world's No. 1 investment bank that pressed Da Mo under him after the subprime mortgage crisis. Now it's not even comparable to Merrill Lynch.

After the confrontation between the two was seen by others, everyone didn't say anything. It's none of my business, of course, it's hanging high.

Feeling the strange atmosphere in the room, Blank Fein was able to become the CEO of Goldman Sachs, and naturally he was not a simple person. After a quick thought, he shrugged his shoulders and smiled.

"Mr. Guo is the chairman of the board of directors of Unocal, and of course everything is up to you. ”

No one is going to get along with money, and Unocal is obviously very profitable to go public, if it is because he screws up. Goldman Sachs' board of directors doesn't really turn a blind eye!

"Thank you Mr. Fein for your understanding. In the end, it was my mistake, so I will apologize to Mr. Finn after the meeting!"

"Mr. Guo is serious!"

The hypocritical politeness of the two makes people feel crooked! But the shopping mall is like this, for the sake of their own face, everyone must wear a mask that suits them.

"Do you have any questions about what I just said?"

From this information on Unocal's operations, Mr. Guo changed Unocal's strategy of diversifying its operations, selling its petrochemical and distribution and retail businesses, and using all the proceeds to purchase oil and gas assets. Although now due to the rise in oil prices, Unocal is more profitable than other integrated oil companies. However, the singular operation mode has undoubtedly pushed up the business risk of Unocal, and once the oil price falls, Unocal will lose far more than ExxonMobil, Chevron Texaco and other integrated oil companies!" Kenny Morgan said.

"Mr. Morgan's analysis is indeed correct. But I think oil is currently in a longer period of growth. There will be no decline in the short term. ”

"Can Mr. Guo elaborate on the reasons for coming to this conclusion?"

"Of course, there are three reasons: First, because of the war in Iraq, the second largest oil producer, which had a stable supply to the international oil market, has disappeared. It will take some time for the damaged oil equipment to be rebuilt. Second, despite the shortage of international oil supply, OPEC has no plans to increase production. Third, the U.S. economy is recovering. Emerging markets such as China, India, and Southeast Asia are also experiencing rapid economic development, especially China and India, which are both oil importers. As the domestic economy grows, the consumption of energy, especially oil, will only increase. ”

After a pause, "the supply has become less and the demand has increased." You are all business elites, and the relationship between supply and demand and price is not more than me!"

"Mr. Guo's analysis is indeed very reasonable. However, the current oil price of more than $40 per barrel has caused a lot of opposition in the country, and if oil prices continue to rise, it will be even more unbearable for people who are more stressed to live. For the sake of domestic stability, Congress and the government will also force oil merchants and OPEC to increase production!" John Fitzgerald Kennedy Jr. said suddenly.

After glancing at him, Guo Shouyun smiled faintly.

"Guys, you're all smart people. Congress and the administration now want oil prices to go up more than anyone else!"

Stan O'Neal, David Rubinstein, Steve Schwartzman, these old fritters who have been in the mall for a long time, have a ray of essence in their eyes!

The two wars in Afghanistan and Iraq, which cost nearly $200 billion, not only emptied the US treasury, but also continued to be spent on the war in the current situation.

Where will the money come from to sustain the war? If taxes are collected from home alone, George W. Bush will not be able to think about being re-elected. So, the best thing to do is to push oil prices higher.

Oil is tied to the dollar, and the higher the price of oil, the more dollar bills the Fed can print and cut wool from countries including China, India, and Europe!

Therefore, if the war does not stop, the price of oil will not really come down.

Of course, that being said. But the swift victories in the two wars in Afghanistan and Iraq convinced the vast majority of Americans that the war would not drag on for long.

Even except for Guo Shouyun, I'm afraid no one believes that these two wars have not really ended for ten years.

"Mr. Guo has probably heard of the peak oil theory, right? I wonder what you think about it?"

Stan O'Neal said suddenly.

The "peak oil" originates from the "bell curve" law of mineral resources discovered by the famous American petroleum geologist Hubbert in 1949. Hubbert argues that oil, as a non-renewable resource, will peak in any region, and that oil production in the region will inevitably begin to decline after the peak. This is at the heart of the peak oil theory.

The peak oil theory is the mainstream theory propagated in the United States today, because it can raise oil prices too high and increase the world's demand for dollars.