Analysts agree that ExxonMobil (XOM) has the financial strength to buy a company like Encana...

Analysts agree that ExxonMobil (XOM) has the financial strength to buy a company like Encana (ECA -0.4%) but disagree on whether such a deal will take place as speculated. Hedgeye's Kevin Kaiser likes the idea after XOM's purchase of Celtic, whose assets are in the heart of ECA’s Canadian natural gas assets. But the hurdle for government approval could be high.

From other sites
Comments (4)
  • marpy
    , contributor
    Comments (1703) | Send Message
    The hurdle of approval may not be so high as Exxon is an American Company and half of ECA's assets are in the USA. We are not talking about a Chinese take over here.
    19 Oct 2012, 02:45 PM Reply Like
  • Southerness
    , contributor
    Comments (16) | Send Message
    XOM already has a majority position in Imperial Oil and has been a good partner. I think the main issue is whether XOM feels they need to move that fast, or does ECA feel the urgency with natural gas prices up ~60% since the Spring.
    19 Oct 2012, 03:08 PM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (528) | Send Message
    After the XTO aquisition, does XOM really need more Nat Gas exposure?
    20 Oct 2012, 03:11 PM Reply Like
  • E.D. Hart
    , contributor
    Comments (1103) | Send Message
    More likely XOM will take over a bite sized company that it can bolt on like Birchcliff Energy that has 30 years of drilling locations and ramp up the drilling as the price improves, or sit on the inventory if it doesn't.
    20 Oct 2012, 11:46 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs