Originally Posted by
theUpsideDown
Would you at least face that they went from 100% to 49% ownership (or some other number)? Im still waiting for a document saying what percent is what. Stakeholder usually doesn't point to much ownership. In bankruptcy court we'd be called a stakeholder. Its a private company so you have no minority investor protection like a public. With a couple additional metrics they can probably keep them honest by whatever contract they agreed to.
Anyway, the refinery would have worked fine at 140 a barrel but the "fundamentals" of oil have changed since the 140 barrel days, thanks in part to fraking, you shouldn't see anything above 100 for a while. Plus the middle east oil cartel might break up due to different countries wanting to exact a little higher price than what the saudis want. I wouldn't dump on the refinery decision too much, they werent fortune tellers.
You seem to not understand that the two companies were merged. You don’t merge and retain 100% ownership. Typically ownership percentages are based on the relative size of each company. If you can merge a company with another and retain 100% ownership you are in the wrong business!
The refinery does not save Delta any more at 50 a barrel then 140 a barrel. It’s strickly the amount they can reduce the crack spread which is the same. In the case of Jet Fuel they were seeing about a 7 cent per gallon reduction. The other refineries dropped their crack spread and all the other airlines paid the same for fuel as Delta. They gained nothing.