Nov. 9, 2015, 3:34 PM
- Apache (APA +14.3%) shares reach their highs of the day after a report that the company had rejected a takeover offer after a suitor was lured by APA's $1.6B in cash and low leverage to help strengthen its balance sheet and fund a dividend.
- One analyst thinks Hess (HES -0.8%) and Murphy Oil (MUR +0.5%) - with strong balance sheets and which have materially underperformed in 2015 as investors have focused on E&Ps with longer life onshore portfolios - also could be buyout targets.
- But shares of APA’s peers have enjoyed little benefit from the report, which Heard On The Street's Spencer Jakab says suggests that the bargains on offer among North American oil and gas producers are not compelling enough to kick off a round of consolidation and that the list of buyers is short.
- Analysts at Simmons thinks Exxon Mobil (XOM -2.1%) and BP (BP -0.5%) are the most likely prospective buyers for APA.
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)
Apr. 8, 2015, 7:59 AM
- Analysts at Jefferies now expect Royal Dutch Shell (RDS.A, RDS.B) to surpass Exxon Mobil (NYSE:XOM) as the world's largest publicly traded oil and gas producer by 2018, with output of 4.2M boe/day, following Shell's $69.6B deal to buy BG Group.
- But XOM has long been rumored as a potential bidder for BG, and Financial Times points out that it now has both the motive and the opportunity, raising the possibility that it could try to outbid Shell for BG.
- Like Shell, XOM is struggling to grow and will find it easier to raise production by dealmaking than by drilling; XOM’s output was ~4.3M boe/day in 2001 and 4M last year.
- With its greater size, low debt and AAA credit rating, XOM could muster a larger cash component in any offer than Shell’s 28% of its total offer of ₤13.50/share; however, hostile deals are very rare in the oil and gas industry.
- Whether or not BG is the perfect fit for XOM, Paul Sankey of Wolfe Research has suggested other midsized E&P specialists could prove tempting, including Hess (NYSE:HES), Continental Resources (NYSE:CLR), Devon Energy (NYSE:DVN), Apache (NYSE:APA) and Anadarko Petroleum (NYSE:APC).
Mar. 13, 2015, 3:58 PM
- Whiting Petroleum (WLL +3.1%) spikes on a Bloomberg report suggesting Exxon Mobil (XOM -0.2%) could be interested in the company; trading is now halted for volatility.
- Continental Resources (CLR -4.8%), Hess (HES +0.4%) and Statoil (STO +1.4%) also are reportedly looking at WLL, according to the report, and WLL has set up a data room for potential buyers to evaluate the company’s financial information and asked them to submit bids next week.
- WLL is the largest producer in North Dakota’s Bakken Shale, and the four rumored suitors already are among the 10 largest holders of acreage in the play.
- WLL had been down all day on an earlier report that it was considering selling off pieces rather than the whole company.
Jul. 14, 2014, 2:21 PM
- Whiting Petroleum's (WLL +7.4%) $6B buyout of Kodiak Oil & Gas (KOG +5.1%) is renewing investor attention on independent energy firms with operations in the Bakken Shale, especially those significantly owned by hedge funds; Paulson & Co. is the single biggest owner of KOG stock, with just under 10% of shares outstanding as of the last filing date.
- While many of the largest Bakken producers are huge companies or parts of huge companies - Hess (NYSE:HES), EOG, Statoil (NYSE:STO), Marathon Oil (NYSE:MRO), XTO Energy (NYSE:XOM) - a few small and mid-cap independent players show hedge fund interest, CNBC's Brian Sullivan writes.
- The single biggest holder of Oasis Petroleum (OAS +0.5%) also is John Paulson's hedge fund, which owns 9.9M shares (~9.8% of shares outstanding), Jana Partners owns 16M-plus shares in QEP Resources (QEP +1.4%), and WPX Energy (WPX +1.1%) has substantial hedge fund ownership.
Apr. 23, 2014, 3:04 AM
- Hess Corp. (HES) is selling its assets in Thailand to the country's PTT Exploration & Production (PEXNY) for $1B. The interests comprise minority stakes in onshore and offshore natural gas and condensate fields.
- The divestiture adds to $7.8B worth of assets that Hess sold in the year through late January. It also comes as other U.S. energy companies offload non-core interests as they look to focus on unconventional projects in North America.
Dec. 2, 2013, 7:59 AM
- Thailand’s PTT Exploration and Indonesia’s PT Pertamina agree to buy Hess' (HES) stakes in two Indonesian offshore energy projects for $1.3B.
- Hess has been shifting away from refining and toward exploration and production, and asset sales are part of that plan; the assets produced an average of 15K boe/day net to Hess YTD.
- Hess says it will use proceeds from the sale to continue buying back shares under an existing $4B program.
Jul. 30, 2013, 7:48 AM
- Hess (HES) agrees to sell its energy marketing business to British utility Centrica's (CPYYF.PK) North American subsidiary Direct Energy Business $731M in cash plus net working capital of ~$300M.
- The sale is part of Hess' plan to focus on its E&P activities, and brings YTD asset sales to $4.5B; Hess says the sale will allow it to start buying back shares under an existing $4B repurchase program.
- Centrica says the deal makes Direct Energy the largest business gas supplier on the U.S. east coast and the second largest business supplier in the U.S. retail power market.
Jun. 21, 2013, 4:34 AM
Hess (HES) and Newfield Exploration (NFX) have reportedly launched separate auctions to sell Asian oil and gas assets with a combined value of around $3B. Hess is looking to offload up to $2B worth of stakes in Indonesia and Thailand, while Newfield is selling interests in Chinese and Malaysian fields. The divestitures are in line with a trend of U.S. energy companies unloading older and less productive fields in favor of more strategic and profitable projects.| Jun. 21, 2013, 4:34 AM
Apr. 9, 2013, 4:41 PM
Hess (HES) reportedly declined a higher offer when it sold its Russian oilfields to Lukoil for $2.05B last week; a unit of NK Dulisma, an energy producer that operates in Russia, claims it offered $2.35B. Sellers, of course, consider many factors when choosing a buyer for an asset, including how much certainty a bidder can provide that the transaction actually will close.| Apr. 9, 2013, 4:41 PM | 1 Comment
Mar. 25, 2013, 7:59 AM
Hess (HES) +1% premarket after Heard On The Street suggests it could be sold outright rather than broken up into pieces. No one has stepped up to buy Hess despite its valuation gap, Liam Denning writes, most likely because it wasn't perceived as being for sale. Norway's Statoil (STO) is an intriguing potential acquirer; for one thing, it has among the lowest proved-reserves life of the major oil companies.| Mar. 25, 2013, 7:59 AM | 2 Comments
Feb. 13, 2013, 10:22 AM
Oct. 17, 2012, 5:18 PMWith Third Point successfully convincing Murphy Oil (MUR) to spin off its U.S. retail business, Deutsche Bank analyst Paul Sankey thinks Occidental Petroleum (OXY) and Hess (HES) likely will be next, since "in both cases, investors have major questions over strategy and execution, and both are trading below NAV.” ConocoPhillips (COP) is viewed as a sleeper pick. (also) | Oct. 17, 2012, 5:18 PM
Oct. 16, 2012, 2:14 PM
Hess (HES +3.8%) shares are strong on Murphy Oil's (MUR +8.8%) move to spin off its U.S. fuel-making business into a new company. Conoco used a similar strategy earlier this year when it spun off its fuels, petrochemicals and pipeline businesses into Phillips 66. HES operates in two segments - exploration and production, and marketing and refining - making it a potential candidate for a spinoff.| Oct. 16, 2012, 2:14 PM
Jul. 15, 2011, 8:58 AM
Oil-and-gas takes the pole among premarket gainers following Petrohawk's (HK +63%) $12.1B bid from BHP Billiton (BHP -1.6%) as it moves deeper into the U.S. shale. The deal values HK at 50% higher than 30-day prices. LNG +6.2%. CHK +5.6%. FST +4.7%. SD +4.2%. XCO +3.8%. EOG +3.7%. HES +2.3%.| Jul. 15, 2011, 8:58 AM | 1 Comment