Exxon Mobil Director Joins Elliott-Backed Group in Bid for Citgo Petroleum
In a strategic move that could shake up the oil industry, Gregory Goff, a board director at Exxon Mobil, has joined forces with a newly formed company backed by Elliott Investment Management to acquire control of Venezuela-owned oil refiner Citgo Petroleum. This development pits Citgo against its rival, Exxon, in the competitive motor fuels and lubrications market.
Goff, who joined Exxon in 2021 as part of a dissident slate of directors, was recently announced as the CEO of Amber Energy, an affiliate of Elliott, following a successful bid in a U.S. court auction of shares in Citgo parent PDV Holding. This move could potentially put an enterprise value of up to $7.28 billion on Citgo, as shares are being auctioned to repay claims against Venezuela and state oil firm PDVSA.
Citgo, which operates refineries in Texas, Louisiana, and Illinois, as well as an extensive fuel storage and pipeline network, has attracted attention with its $2 billion net profit in 2023. Goff's extensive experience in the energy sector, including his tenure as chairman and CEO of Andeavor and vice chairman at Marathon Petroleum, could prove valuable in this high-stakes acquisition.
Elliott Investment Management has a history of making strategic investments in the energy sector, as evidenced by its successful stake in Marathon Petroleum, which led to a lucrative sale of its Speedway retail fuel business for $21 billion in 2021. This track record of driving operational improvements and maximizing value for shareholders could bode well for the future of Citgo under Goff's leadership.
In conclusion, this latest development in the energy industry highlights the potential for significant changes in the competitive landscape of oil refining and distribution. Investors and industry observers should keep a close eye on the outcome of this acquisition bid, as it could have far-reaching implications for the future of Citgo, Exxon Mobil, and the broader energy market. Stay tuned for further updates as this story unfolds.
