Jul. 31, 2015, 7:46 PM
- Giants Exxon Mobil (XOM -4.5%) and Chevron (CVX -4.9%) finished significantly lower at the close after each attempted a midday rally, in the wake of earnings misses marked by the continuing crude supply glut and price pressure.
- Oil ETFs fared not much better today: USO -3.2%, OIL -3.7%.
- Producers have key differences that make for advantages and disadvantages, like Chevron's downstream cushion. Exxon's edge over Chevron, Liam Denning notes: M&A. Its stock is down just 19% over the past year while the sector has tumbled 47%.
- As oil's selling point -- big cash distribution -- gets squeezed, Exxon is in relatively good shape. It's still raising its dividend, and it's cut its projected Q3 buybacks to just $500M (vs. zero for Chevron, Shell and BP).
- Exxon says it shops worldwide, but the U.S. may be a more natural hunting ground. Possible targets? According to Wolfe Research's Paul Sankey, Pioneer Natural Resources (PXD -2.4%) and Hess (HES -2.2%).
- ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
- Previously: ConocoPhillips -3.3% as dividend gets scrutiny out of earnings (Jul. 31 2015)
- Previously: Chevron -1.8% as earnings tumble, paced by $2.2B upstream loss (Jul. 31 2015)
- Previously: Exxon Mobil off 1.8% premarket after lowest profit since 2009 (Jul. 31 2015)
Jun. 25, 2015, 12:17 PM
- Penn Virginia (PVA +7.8%) spikes higher after a report that BP (BP +0.3%) has offered $8/share in a takeover bid for the company, and that PVA has hired BofA to help it search for potential buyers.
- PVA is said to have rejected the offer because it believes the terms offered undervalue the company, and is holding out for at least $10/share, according to U.K. publication Proactive Investors.
- BP rivals such as Exxon Mobil (XOM -0.1%) and Chevron (CVX -0.1%) also may be interested in buying PVA, the report says.
Apr. 21, 2015, 10:15 AM
- BP execs reportedly are concerned the company is vulnerable to a takeover bid, and they are said to have stepped up internal reviews of takeover scenarios and war-gamed defense strategies with advisers from firms including Morgan Stanley.
- While a move for BP may seem unlikely because of still-unknown legal liabilities from the 2010 Gulf of Mexico oil spill, there’s at least one good reason for BP's paranoia: Before ruling it out by going for BG, Royal Dutch Shell was said to have taken a hard look at buying BP.
- Even a slimmed-down BP still has plenty to attract potential acquirers, including strong deepwater prospects in Angola and the Gulf of Mexico, a refining business that has outperformed peers, and an industry-leading trading outfit.
- BP views Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) as the only realistic predators remaining, according to the report.
Apr. 8, 2015, 3:21 PM
- Royal Dutch Shell (RDS.A, RDS.B) will become a dominant player in the liquefied natural gas market through its acquisition of BG Group, selling ~50M tons/year of LNG by the end of the decade vs. less than 25M tons/year by Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), Shell CFO Simon Henry says.
- The deal will increase Shell’s LNG sales by 32% immediately and 80% by 2018, accounting for ~15% of the world’s traded LNG, according to Henry.
- The deal gives Shell access to BG’s Australian project to produce 8.5M tons/year of LNG from coal-seam gas; the first unit at the site already is producing and a second will start later this year, BG Chairman Andrew Gould says.
- The acquisition also gives Shell assets in Tanzania, where some of the world’s biggest gas discoveries have been made; BG has a 60% interest in three offshore blocks and may help develop an LNG plant there to export gas to Asia and Europe.
- In the LNG market “size really matters and the size underlines delivery potential,” Shell CEO Ben Van Beurden says. "This is about scale.”
Mar. 30, 2015, 2:45 AM
- In Asia's biggest block deal this year, Chevron (NYSE:CVX) has sold its entire stake in Caltex Australia (OTC:CTXAY), the country's biggest refiner, for A$4.7B ($3.7B).
- Offshore institutional investor demand for the 50% holding was strong, with bidding driving the final price to A$35 a share.
- Previously: Chevron looks to sell Caltex Australia stake (Mar. 27 2015)
Mar. 27, 2015, 5:03 AM| Mar. 27, 2015, 5:03 AM | 8 Comments
Sep. 29, 2014, 8:56 AM
- EnLink Midstream Partners (NYSE:ENLK) and EnLink Midstream (NYSE:ENLC) agree to acquire Gulf Coast natural gas pipeline assets including the Bridgeline system in southern Louisiana from Chevron (NYSE:CVX) for $235M.
- The assets include ~1,400 miles of natural gas pipelines spanning from Beaumont, Tex., to the Mississippi River corridor and ~11B cf of working natural gas storage capacity in southern Louisiana.
Sep. 4, 2014, 6:50 AM
- Solvay (OTCPK:SVYZY) will buy Ryton PPS, a specialty polymers business, from Chevron Phillips (CVX, PSX) for $220M.
- The acquisition includes Ryton PPS's resin manufacturing units in Texas, pilot plant and research and development laboratories in Oklahoma and compounding plant in Belgium.
- The transaction is expected to be completed in Q4 of 2014.
Dec. 18, 2013, 6:26 PM
- Anadarko Petroleum's (APC) legal troubles likely haven't tarnished its allure for investors - instead, it has helped make APC $9B cheaper, and more appealing for a buyout, Bloomberg reports.
- APC may be at the top of the list for multinational oil companies seeking purchases to turn around declining production, analysts say; a buyer willing to shell out $40B plus a premium would get a presence in fields where few big energy companies have exposure: the Niobrara formation in Colorado, Texas’ Eagle Ford shale basin, and offshore Africa.
- APC would be an especially good fit for Exxon (XOM) or Chevron (CVX), Oppenheimer's Fadel Gheit says, although it's hard to see how a deal could be serious without a resolution to the Tronox lawsuit, which could leave APC on the hook for as much as $14B in environmental cleanup and health claims.
Oct. 29, 2013, 2:34 PM
- 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.
Aug. 15, 2013, 3:59 PM
- Gulf Keystone (GUKYF.PK, GFKSY.PK), sitting on Iraqi's Kurdistan's giant Shaikan discovery that could produce 250K bbl/day by 2018, is seen as a takeover target as the world’s biggest oil companies look for untapped fields.
- Gulf Keystone has spent $780M so far toward completion of a pipeline for direct exports to Turkey; analysts say offers could come soon because the new pipeline may boost the company's value by 40%, and a ruling is expected in a London lawsuit brought by a former associate claiming 30% of the pipeline.
- Exxon Mobil (XOM), Chevron (CVX) or an Asian national oil company are considered candidates to snap up the company.
Apr. 25, 2013, 10:43 AMCobalt Energy (CIE +1.8%), which has doubled in value since going public in 2009 but still trades at a substantial discount to the value of its underlying assets, is turning into a takeover target for energy companies attracted to its oil finds from Africa to the Gulf of Mexico, Bloomberg writes. CIE’s assets are "a needle mover" for a large international player, Guggenheim says. | Apr. 25, 2013, 10:43 AM | 1 Comment
Jan. 18, 2013, 9:48 AMSome analysts say the coming leadership change at EOG Resources (EOG +0.3%) makes a takeover more possible, with Chevron (CVX) and Statoil (STO) seen as potential suitors. EOG is “an attractive target from the perspective of a super-high-quality asset base in all the right plays in the U.S.,” an RBC analyst says. With CEO Mark Papa leaving in June, “it does increase the possibility” of a deal. | Jan. 18, 2013, 9:48 AM
Jan. 16, 2013, 11:33 AM
Energy bankers hoping for another big year of M&A shouldn't fret too much about forecasts for oil and natural gas prices, since fear could make 2013 another bumper year for deals. Right now, it looks cheaper to buy barrels on the stock market via deals than drill for them: Bernstein says oil majors such as XOM and CVX trade at an average enterprise value of less than $15/boe of proved reserves.| Jan. 16, 2013, 11:33 AM
Dec. 24, 2012, 2:22 PM
EOG Resources (EOG -0.6%) is the “big winner” in the shale-gas deal between Chevron (CVX -0.9%) and Apache (APA -1.6%), UBS analysts write in a note to clients. EOG will realize an estimated $450M "for exiting a project it had little interest in pursuing," UBS says, while the deal likely will cause capital expenditure concerns for CVX and APA.| Dec. 24, 2012, 2:22 PM | 3 Comments
Dec. 24, 2012, 9:41 AM
Chevron (CVX) and Apache (APA) each agree to acquire 50% interests in the Kitimat liquefied natural gas project and proposed Pacific Trail Pipeline from EOG Resources (EOG) and Encana (ECA), with CVX becoming operator. CVX and APA also will acquire 50% interests in ~644K acres of petroleum and natural gas rights in the Horn River and Liard Basins in British Columbia from EOG and ECA, with APA becoming operator.| Dec. 24, 2012, 9:41 AM | 3 Comments