ExxonMobil's (XOM +0.9%) deal to acquire Denbury's (DNR +3%) Bakken assets creates a buzz around...

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Mike Maher Comments (1764)
 
None of the names really moving on the news. Thats kind of odd.
20 Sep 2012, 03:30 PM Reply Like

dhdhoora Comments (157)
 
XOM has shown itself to be not the most savvy deal maker -- I suspect that they will make several additional acquisitions in the Bakken along with other major players. There simply is too much oil there to be left to the current cast of E&P companies to exploit. A study by Barclays indicates that the Bakken will provide the most new oil in North America by 2020. XOM has to replace the expected 4% annual depletion of their production so they have no choice but to do deals. They have ton's of dough -- so a half a billion extra in a deal is nothing to lose sleep over.

As the takeaway capacity is increased, water disposal problems solved, and gathering infrastructure completed, publicly traded Bakken E&P companies will find there way into the arms of waiting suitors... Uh, that's there lot in life. In the long run, current Bakken investors would do better if companies like KOG remain independent -- but I wouldn't count on it.

All the very best,
Don
20 Sep 2012, 05:08 PM Reply Like

Mike Maher Comments (1764)
 
Based on MHR having 27 MMboe proved reserves, this deal values MHR's acreage at $540 mil
21 Sep 2012, 01:25 AM Reply Like