Exxon Mobil Board Director Joins Elliott Investment Management-Backed Company in Bid for Citgo Petroleum Control
In a recent development, Exxon Mobil’s board director Gregory Goff has joined a newly formed company backed by Elliott Investment Management to acquire control of Venezuela-owned oil refiner Citgo Petroleum. This move pits Citgo and Exxon against each other in the competitive motor fuels and lubrications business, with Exxon being the third-largest U.S. oil refiner by capacity and Citgo the seventh-largest.
Goff, who joined Exxon in 2021 as part of a dissident slate of directors, was revealed as the CEO of Amber Energy, an affiliate of Elliott, after successfully bidding in a U.S. court auction of shares in Citgo parent PDV Holding. The enterprise value of the Houston-based oil refiner is estimated to be up to $7.28 billion, with shares being auctioned to settle claims against Venezuela and state oil firm PDVSA amounting to up to $21.3 billion for expropriations and debt defaults.
Citgo owns refineries in Texas, Louisiana, and Illinois, along with an extensive fuel storage and pipeline network and 4,200 independent retailers, generating a net profit of $2 billion in 2023. Goff, with 40 years of experience in the energy sector, has previously served as chairman and CEO of oil refiner Andeavor and as CEO of Claire Technologies Inc., as well as vice chairman at Marathon Petroleum until 2019.
Elliott Investment Management has a history of successful investments in the energy sector, with Marathon Petroleum selling its Speedway retail fuel business for $21 billion in 2021 after Elliott’s involvement. This latest development in the oil industry highlights the ongoing changes and strategies being implemented by major players, which could have significant implications for the market and investors.
Analysis:
– Exxon Mobil board director Gregory Goff has joined a company backed by Elliott Investment Management to acquire control of Citgo Petroleum.
– The bid puts an enterprise value of up to $7.28 billion on Citgo, with shares being auctioned to settle claims against Venezuela and PDVSA.
– Citgo owns refineries and retailers, generating a net profit of $2 billion in 2023.
– Goff has extensive experience in the energy sector and was previously associated with Andeavor and Marathon Petroleum.
– Elliott’s successful investments in the energy sector, like Marathon Petroleum’s sale of Speedway, indicate potential market impacts and investor opportunities.