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castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
70616 posts

ConocoPhillips in Talks to Buy Concho Resources
quote:

ConocoPhillips is in talks to acquire rival Concho Resources Inc., according to people familiar with the matter, as one of America’s largest independent oil explorers looks to make a bold bet on shale during an historic industry downturn.

The companies may announce a deal in the next few weeks, said the people, who asked to not be identified because the matter isn’t public. Shares of Concho declined 1.3% in New York trading Tuesday, giving the Midland, Texas-based company a market value of $8.7 billion.


LINK


CajunTiger78
New Orleans Saints Fan
Member since Aug 2017
1399 posts

re: ConocoPhillips in Talks to Buy Concho Resources
Hmm ConocoPhillips is already struggling, not sure this helps them. Kind of like when Oxy bought Anadarko.


8thyearsenior
Houston Astros Fan
Centennial, CO
Member since Mar 2006
4199 posts
 Online 

re: ConocoPhillips in Talks to Buy Concho Resources
Conoco needs acreage in the Permian and this deal does that. They are heavy in the Bakken and Eagleford, which they need to get out of.

I am guessing the plan is to acquire CXO, then become profitable through "efficiency savings." Basically run all the acreage with just COP employees, bye bye CXO employees.

Both companies trade way over where the SMOG-debt/shares says they should.

I am curious what bank is representing CXO and without a doubt is the one who leaked this info hoping to run the stock price up.

I am expecting to see a lot more consolidations in the coming months. companies can not survive the current environment on their own.


cwill
Member since Jan 2005
45099 posts

re: ConocoPhillips in Talks to Buy Concho Resources
quote:

Eagleford, which they need to get out of.


Get out of their crown jewel that prints money?


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tigerbaiter1033
LSU Fan
Member since Nov 2011
1854 posts

re: ConocoPhillips in Talks to Buy Concho Resources
COP employees run all of CXO's assets in the Permian? LOL good luck w/ that. They have a tiny position in the Permian and cant just all the sudden pick up and run the show.


ragincajun03
LA-Lafayette Fan
Energy Capital of the World, TX
Member since Nov 2007
12851 posts

re: ConocoPhillips in Talks to Buy Concho Resources
quote:

Hmm ConocoPhillips is already struggling, not sure this helps them. Kind of like when Oxy bought Anadarko.



Except Oxy wasn’t struggling when they bought Anadarko. In fact, Oxy’s balance sheet was looking damn good. Then oooff!


8thyearsenior
Houston Astros Fan
Centennial, CO
Member since Mar 2006
4199 posts
 Online 

re: ConocoPhillips in Talks to Buy Concho Resources
This got done

quote:

ConocoPhillips and Concho expect to capture $500 million of annual cost and capital savings by 2022


I expect all this to come from headcount. Is there room to squeeze service companies any more? CXO may run the Permian with COP folks going home, but someone is going home to achieve those savings.

Did Tim Leach really say their decline rate is 40% for their proven reserves? Ouch.


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cwill
Member since Jan 2005
45099 posts

re: ConocoPhillips in Talks to Buy Concho Resources
quote:

quote:
Hmm ConocoPhillips is already struggling, not sure this helps them. Kind of like when Oxy bought Anadarko.


Except Oxy wasn’t struggling when they bought Anadarko. In fact, Oxy’s balance sheet was looking damn good. Then oooff!




Another big difference is that Oxy paid about $55B for APC and Conoco is going more bite-sized with a $9.7B merger.

Ryan Lance won't have to run to the Oracle of Omaha for a pay-day loan like Vicky.
This post was edited on 10/19 at 11:52 am


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Enfuego
Tulane Fan
Nola
Member since Mar 2009
9616 posts

re: ConocoPhillips in Talks to Buy Concho Resources
Pioneer / Parsley reported by WSJ to be in deal discussions. Recall Pioneer’s CEO Scott Sheffield is the father of Parsley’s previous CEO and current Chairman Bryan Sheffield. Both Companies do have a ton of acreage overlap and potential synergies .... but the father / son aspect makes this very conflicting. Crazy


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hubertcumberdale
LSU Fan
Member since Nov 2009
2383 posts

re: ConocoPhillips in Talks to Buy Concho Resources
So some smart people think oil may not be dead after all...interesting


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The Torch
LSU Fan
DFW The Dub
Member since Aug 2014
12965 posts

re: ConocoPhillips in Talks to Buy Concho Resources
This is a long play hoping that after the election stuff calms down, a covid vaccine is discovered and WTI oil goes back to $65.00 a barrel by the summer of 2021.



cwill
Member since Jan 2005
45099 posts

re: ConocoPhillips in Talks to Buy Concho Resources
quote:

This is a long play hoping that after the election stuff calms down, a covid vaccine is discovered and WTI oil goes back to $65.00 a barrel by the summer of 2021.


That’s not very long for a “long play”.


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ragincajun03
LA-Lafayette Fan
Energy Capital of the World, TX
Member since Nov 2007
12851 posts

re: ConocoPhillips in Talks to Buy Concho Resources
quote:

WTI oil goes back to $65.00 a barrel by the summer of 2021.


From your lips to God’s ears, sir!


TigerCrude
LSU Fan
Member since Oct 2019
792 posts
 Online 

re: ConocoPhillips in Talks to Buy Concho Resources
Cop not a good stock symbol. They are trying to defund them.


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notiger1997
Metairie
Member since May 2009
48053 posts
 Online 

re: ConocoPhillips in Talks to Buy Concho Resources
quote:

WTI oil goes back to $65.00 a barrel by the summer of 2021.


From your lips to God’s ears, sir!



Yes please.


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ColoradoAg03
Texas A&M Fan
Denver, CO
Member since Oct 2012
4827 posts

re: ConocoPhillips in Talks to Buy Concho Resources
quote:

Scott Sheffield


A damn good CEO. Loved working for him for the 7ish years I was with PXD.


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TigerCrude
LSU Fan
Member since Oct 2019
792 posts
 Online 

re: ConocoPhillips in Talks to Buy Concho Resources
quote:

WTI oil goes back to $65.00 a barrel by the summer of 2021


Just need to get planes back in the air. Then oil industries will rebound. Diesel took a small hit, gasoline took a hit but is rebounding, kerosene (Jet fuel) market is still way down


castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
70616 posts

re: ConocoPhillips in Talks to Buy Concho Resources
These companies don't need high crude oil prices. They can't stay disciplined when it's up there.
They just need a stable price in the 50-60 range


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