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

ExxonMobil's (XOM +0.9%) deal to acquire Denbury's (DNR +3%) Bakken assets creates a buzz around firms with assets in the Williston Basin. Wunderlich notes XOM paid top dollar, and it sees potential for XOM to expand in the area or for other majors to move in. Kodiak's (KOG) plentiful Williston assets could be worth $13-$15/share based on today's deal; Whiting's (WLL) could be worth $70/share.
Comments (3)
  • Mike Maher
    , contributor
    Comments (2616) | Send Message
     
    None of the names really moving on the news. Thats kind of odd.
    20 Sep 2012, 03:30 PM Reply Like
  • dhdhoora
    , contributor
    Comments (438) | Send Message
     
    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
    , contributor
    Comments (2616) | Send Message
     
    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
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