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Bloomberg: Pioneer Natural shale holdings could attract record bid

  • More takeover talk lifts shares of Pioneer Natural Resources (PXD +3.2%), as a Bloomberg profile says the energy explorer with more than 7,000 wells in the Permain Basin is the hottest oil play in the U.S., seconding a notion from John Paulson.
  • PXD's proven reserves and production in low-risk, predictable areas mean suitors would have to offer at least a 30% premium, or ~$275/share, analysts say.
  • ConocoPhillips (COP), Chevron (CVX) and Shell (RDS.A, RDS.B) may be looking to expand their Permian acreage, and buying PXD would accomplish that while giving them more expertise in unconventional drilling techniques; only such a large, integrated company can afford the large amount of capital needed to fully develop the resource.
Comments (1)
  • Strike
    , contributor
    Comments (1012) | Send Message
     
    RDS took a bath in shale and just wrote off $ 2 billion of its U.S. shale gas assets last quarter (Ouch!) Shell is withdrawing from shale gas and focussing on more profitable shale oil.

     

    What is the ratio of Oil:Gas in the Permean deposits?
    30 Oct 2013, 03:02 AM Reply Like
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