Sept. 27 - Reynolds Holding and Christopher Swann discuss how the trend of creating value by breaking up oil companies is spreading to the oil services industry.
Today we're gonna talk about oil spills but not the -- kind. Breaking up companies as a trend of spilling out of the big oil industry. Into the related supply company industry now. It's driven of course not surprisingly by a search for value Chris want tell us what's going on there. Well a couple of is that comic Kate Phillips the -- of the time America's biggest oil company did something that area and expect. I companies laughter group I hate to shrink. Vet tech comic ranking -- into the top and refining division Bryant and the exploring brightest. Nothing is done incredibly well and it really set a trend in about it says. Now as you mentioned and what's happening now if that's -- -- got into the oil services. And in my health services what are we what what do they do well these -- the companies that for vital equipment ready yet. Some drillers raiders on INS I think helped me put this to maintain that things like that now have as a supply company what -- they. You mentioned comically divided themselves and to exploration. And refining and as a supply what does this alliance the -- -- and stuff isn't going to vote as a put which company will be -- this week that noble which supplies rise eight weeks that I tech companies rent. Splitting up the old -- Which have different characteristics and leave me now it seems. That the yet the new rigs very fancy deep sea drilling equipment you -- now that's 68 and is -- very very steady. It means for the Ronald psychologically. And then the old seventh that definitely quite tight there breaks. Which you can any event happened very short period of time now and next is value that is very different different businesses different economic aspect and split them up and you get better -- -- Yeah so now how much value we talking economy you you've looked at some of the companies we've seen notes that the split up vs those that haven't. Water of the differences and valuations. Well if you look at a company likes he -- become extremely focused on the pop and but they gave for about a brand. That drilling drilling -- -- advocate for about nine times that 2014. -- seeded top guys right at the ones -- have this unpleasant mix of the tape and placed on it unpleasant inexorable race in the studio at Richmond date on not nearly as well. I haven't done any of the view that suggestion is that -- for the coming years. At that and I the break themselves. Don't do affordable although the unpleasant activate it sits on the site and the whites to humiliate -- amendment but it. Well we've talked about drillers are there any other kind of companies that supplied big oil that might be considering this kind of stuff as well well -- companies like -- the richest on whether -- child. He has. Magic beyond the full. -- a lot of let him option businesses -- they would benefit and what kind of what kind of businesses. Particularly caring how old royal wild pitch right not to me. And and other business to really shine if you get rid of stuff -- -- OK so we can look forward to this strategy spreading. Throughout the industry a good oil spill out there is such thing and in the mean time stay tuned for more breaking news. Next week.