Feel like RDS needs to make a move too to keep pace with XOM, CVX and COP

Endeavor. Also not a good look to make such a ruckus moving away from fossil fuels to renewables to then turn around and spend $5B+ on an oil acquisition.

CrazyRichAggie said:

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Feel like RDS needs to make a move too to keep pace with XOM, CVX and COP

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I had heard rumors a year or so ago about them going after Endeavor. That would be an acquisition that would scare me. No telling what skeletons are hiding in that closet.

AustinAg008 said:

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Endeavor.

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I heard that same rumor back in February..

CrazyRichAggie said:

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Feel like RDS needs to make a move too to keep pace with XOM, CVX and COP

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RDS bought BG Group last time around, not sure they have the cash to gobble up someone else this time

Cyp0111 said:

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I like nat gas in the near/mid term. Ive been researching better ways to get exposure than go through poor mgmt teams. I prefer Haynesville solely due to realized prices.

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I'm no expert in natural gas, but be careful in your evaluations. I've seen people really lose thinking its a good play, both in their personal life and in their careers.

Do your evaluations extremely conservative, say at $1.00 - $1.25.

Also, know who owns the storage. Those that own the storage (i.e., salt domes) affect the market. They fill them when the price is down and release when the price goes up, particularly in the Marcellus. Makes it tough for the producers if they don't control the storage.

It can make money but treat it as a margin business (like chemicals) and not like E&P which has individual investments per well.

Again, I'm not an expert by any means so these are just my personal observations.

CrazyRichAggie said:

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AustinAg008 said:

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Endeavor.

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I heard that same rumor back in February..

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I always thought Shell was going to buy CXO, but Endeavor would give them a nice footprint on the Midland side. Could also see a deal for PXD or OXY (down the road).

I wonder how many supermajors are regretting not pursuing an acquisition of NextEra 5 years ago.

Again.

CXO waived the white flag on pure play shale oil. You need a diversification in declines to win at this long term. That means more compression in valuations and small premium, all-stock acquisitions.

Cyp0111 said:

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Again.

CXO waived the white flag on pure play shale oil. You need a diversification in declines to win at this long term. That means more compression in valuations and small premium, all-stock acquisitions.

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Big loser here, Quantum and many other PE portfolios.

CXO taps out at $9.7B... Two years after buying RSP for $9.5B.

Endeavor is pushing to go public now. They've been down the acquisition road twice and it didn't work.

T&Ps for the Concho folks

Sentiment today seems to be that Conoco's Permian Assets will be managed from Midland, along with the Lower 48. With Tim Leach taking on an EVP/President role of Lower 48, he will have offices in Midland and Houston.

Not sounding like that bad of a deal for Concho employees.

The only way a shale company makes it long term is to have an underlying conventional or EOR PDP base to cover G&A and interest payments. Exco had this going for them at one time in the Haynesville with their conventional group which they spun off, Compass. Most pure shale plays find themselves in a jam if they have to keep feeding 'Seymour', especially if they subscribed to the crazy b factors and multiple benches. This move makes sense to COP which has conventional PDP to underpin the shale game.

txaggie_08 said:

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Sentiment today seems to be that Conoco's Permian Assets will be managed from Midland, along with the Lower 48. With Tim Leach taking on an EVP/President role of Lower 48, he will have offices in Midland and Houston.

Not sounding like that bad of a deal for Concho employees.

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Exxon made same promise when they bought XTO, it held up for 4-5 years but eventually everything/everyone was moved to Houston.

Mckinsey ?

to the above point. XOM did not have any point of reference for L48 unconventional so leaving xto alone for a period of time made sense.

COP already has a large shale business so this will largely fold into existing structure. I do not know the corporate culture at CXO but the Burlington people did not make it too far within COP (albeit it was integrated) and Mulva was a grade a hack.

AustinAg008 said:

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Man having Dad bail you out and trigger your golden parachute is something else...

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And I believe his grandpa gave him an old filed with about 100 wells to start his career.

While XOM maintains the dividend, quality companies getting gobbled up.

CrazyRichAggie said:

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AustinAg008 said:

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Man having Dad bail you out and trigger your golden parachute is something else...

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And I believe his grandpa gave home an old filed with about 100 wells to start his career.

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Good point. Forgot about the Parker and Parsley legacy wells/leases he inherited.

Still figuring out the XTO acquisition...

That wasn't a coincidence. Pioneer plus parsley now a good acquisition target on combined bassi

GarlandAg2012 said:

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PXD with layoffs a couple weeks ago and now this? Not a good look if true.

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Why? There's going to be more after the acquisition.

I can see Gallagher staying on as the new CEO or COO of PXD but the rest of the PE folks would be toast, no offense.

@NonGaap what does it mean when an independent board member resigns less than a week before the WSJ leaks a story about a father (PXD) potentially buying his son's company (PE)?? sec.gov/ix?doc=/Archiv

dragmagpuff said:

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AustinAg008 said:

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Man having Dad bail you out and trigger your golden parachute is something else...

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It's worse than that. Parsley got most of their currently relevant acreage from Pioneer selling their "worst" acreage. Parsley's chairman got his start at his Dad's company, got the acreage to go public from his Dad's company, and will now get bought by his Dad's company.

And people act surprised when belief in the meritocracy and capitalism is at all time lows. Just a bunch of nepotism and management self-enriching with a bunch of yes men on the board.

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Man.. I foresee a ton of lawsuits due to conflicts of interest on both sides.