How long do yall think before anadarko and Marcellus basins both get sold after the merger? Kimmeridge and Toms Capital are both very vocal on Devon leaving these assets behind, and Kimmeridge was supposedly a big factor on forcing Coterra into changes that led to the merger. Marcellus already has an 8 billion dollar offer on the table. Will this be Devon’s way of reducing the workforce and gaining capital back?
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@dc this is correct.
@gg Of course he will abide. Kimmeridge with positions in both DVN and CTRA brought the two parties together with Jorden and Gaspar basically agreeing to work towards making DVN the preeminent pure play Delaware oerator. Spending capital money other than the Delaware is considered "capital destruction" and now that TOMS Capital (backed by legendary Citadel and CEO Ken Griffin) are actively demanding the monetization of all non-Delaware assets, Jorden and Gaspar will do as requested or face certain public upheaval. mandates of BOD changes and further discounting of DVN stock. In the end, both have tens of millions of generational wealth tied to the success and outcome of the merger. The ARK is sinking.
Tom is chairman of the board (for now). Is he really gonna let them sell off the ark he built because Kimmeridge and TOMS said to by a party boat?
https://www.upstreamonline.com/shale/devon-energy-ceo-sees-favourable-conditions-for-swift-asset-sales/2-1-2008530
STX first
Idk. Most majors like intl assets in the mix. They’re already all so heavy in Permian. Why bother?? They may just wait for an oil crash and buy other operators from bankruptcy like Apache or Chord
@OP Yes. Initially headcount reductions might be fairly limited but as soon as they start to shed assets, all those supporting those assets will go too. This takes some of the disdain towards CEO and BOD to move the HQ to Houston. Both Kimmeridge and TOMS Capital are pushing for accelerated assets monetizations of all non-Delaware assets with TOMS even pushing the narrative of openly discussing with the "big boys" about acquiring the whole Devon entity. Regardless, DVN will most likley be acquired by EOY 2027 by Chevron, Conoco, possibly Exxon or EOG.
100% Give it 6 months, the gas plays are going then Gillette and STX behind that. Only way to alleviate the pressure is to double down on Permian. Headcount will go with asset sales, cleanest read on not seeing more boxes loading up post merger.