word on the BP layoff site is that BP will merge the lower 48 and GOM with Chevron.
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CVX loses ~400 million/quarter onshore US and wants to expand to buy lower 48 after halting all drilling outside of West Texas and New Mexico?
Give me a break , people.
BTW it would not be a merger, it would be an acquisition of BPs North American Properties (remember the Tenneco Deal?)
Better deal than you might think, BP trading 31.65 as we speak. If you think Oil will rebound this is as good a deal as it gets to buy production AND reserves for .30 cents on the dollar. If you don't think Oil will rebound and your in the oil business, then it doesn't matter anyway does it?
This is the kind of deal that kicks you to the top in ROCE, (at least 50% more layoffs and cost reductions) and makes you look like a genius the minute oil tops 60 on the way to 150.
I do not think it would be in Chevron's best interest to acquire Lower 48. Not when BP has many assets with much higher margins.
BP has been trying to spin off Lower 48 since the spill. Their new regulations are crippling the company. I'm surprised they haven't already. It's too late to get a good deal now.
May sound doubtful, but with the oil and gas business in the shitter for the forthcoming years, I wouldn't rule out this long shot bet. The word is "Merger", not acquisition.
Doubtful.