Well we all knew this was eventually going to happen, but I have it from reliable sources that COP is a takeover target for ExxonMobil. This will be announced at the beginning of 2017.
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What would you prefer:
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make a profit making 200kbopd, or
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lose money making 1,500kbopd
Just by Numbers:
Exxon used to spend @ $ 40 billions a year to increase their production growth by ~ 5%
Exxon production is ~ 4 million BOE/day.
Hence 5% would make about 200,000 BOE/day
For TWICE the spent money; XOM would have 1,500,000 BOE/day
3 times the ROI
The stock price action of late says otherwise. This sad puppy isn't getting any attention from anybody.
The reserves are half the value but the costs aee much higher and make the difference between profitable and unprofitable ... the reserves are worth the cashflow being thrown off the assets before debt and capex - that's negative right?
I don't pretend to be a financial genius, unlike some of the posters here, and I have no clue as to XOM's intentions. But I read a very good analysis a couple of months back regarding the possibility of a takeover of COP by XOM. Bottom line is that even with the debt, at current stock price plus a premium ( I think they used about $60/share), XOM would be acquiring reserves at less than half the value of their own reserves. I just wish I could know in advance, I'd put the entire severance into COP options.
Dumb sh_t! Think of something at least remotely believable!
Simply put: Exxon is NOT that stupid. Won't happen.
The ConocoPhillips assets need more people to run them because they are absolute sh--e compared to Exxon - why these comparisons, Exxon is in a totally different league.
Seriously, no company is going to buy this turd. The debt load is too great. Remember COP buying Burlington? Flip it around. If XOM bought COP, it would be for the assets. Any redundancy in personnel will favor the XOM people COP will still be turfed.
XOM upstream runs with 17k employees compared to 14k in COP, yet XOM has 4 times as much production. XOM Could absorb all of COP and only keep the field personnel.
Not this retarded post again.
PBX- ExxonMobil did and it is called Inter Oil! Announcement was made this week! Good fit for them! Maybe their other organization (XTO) will but most employees would be considered redundant and be released for other opportunities! Good luck with that!
It is not all about the numbers. ConocoPhillips has some real problems with its culture which were being fixed at $100 oil. If I were Exxon I woukd look elsewhere.