Here is update on COP split of its upstream & downstream assets. All but 3 of listed US Refineries (PN/AK/WA) have cokers.
Looks like the market liked the news, CoP stock up over $4 this morning – but Wallstreet folks are idiots when it comes to what is good strategic move for oil industry and this isn’t one.
But COP isn’t alone doing this dance – MAP completed its spin-off downstream assets on July 1, 2011 (but they at least used funds purchase Eagle Ford Shale Assets $3.5B).
COP was 3rd largest US Refiner & 5th largest Global Refiner. But COP along with several Majors listed in Global top 15 (XOM-1st, Shell-2nd, BP – 4th, COP-5th & Valero – 6th) could be eleminated when asset sales, refinery closures and spin-offs complete in 2012. All the other top Global refineries are Government owned refiners (like Sinopec/CNPC/PDVSA/PEMEX/PBR).
Details are fuzzy – not sure who is getting the kids in this COP divorce. But COP coking Tech already sold to Bechtel & some other Technologies (HF Alky, Carbon Fibers) were eliminated, greatly minimized earlier.
Regards