Anyone else hear the rumor that ExxonMobil is looking into purchasing COP? It makes since given all of the recent sales. Are we going to continue to sell off assets until we are a small enough company to be purchased?
10 replies (most recent on top)
Anyone that thinks COP is going to be purchased are idiots.
Well thought out article here.. in summary the synergies make sense and Xom debt level could easily allow the merger based on CoP enterprise value. That said, it's likely to be heavily resisted at executive level and the premium would need to be 20%+ if it were to be hostile.. either way, it's a good read..
https://seekingalpha.com/article/4072304-exxon-take-swing-conocophillips?ifp=0&v=1494675900
Exxon market cap is down $65 billion. They haven't made enough adjustments yet either. Being more diversified gives them more cushion and more time but they too will fail if prices stay where they are and they do not adjust to survive the new economic climate. I don't believe they are in position to buy anyone!
pmr..Regarding efficiency level. XOM has 70k employees...15k in the upstream and the remainder in downstream and chemicals. Those 15k upstream employees produce 4 million oil equivalent barrels per day. COP has 10k employees all in the upstream, but only 1.3 Million oil equivalent barrels per day (and shrinking due to asset sales). That is why XOM generates free cash flow...In an acquisition, virtually all the COP overhead will not be needed...only field operations headcount and few techical and accounting folks.
No wonder you guys are on the layoff site! Exons market cap is only down $65 billion! Even though they are more diversified they have not yet made all the changes required to be profitable in this new economic environment. Being more diversified gives them more time to study and react but in the end they will have to change or fail. Exxon is not in a position to buy anyone as they are still getting their own house in order.
Last rumor was Anadarko, next is oxy then pioneer.
Dream little ones, your Knight is delayed.
The "efficiency level of XOM". I just can't get past that part.
Not Exxon. Losers. My amazing sons are going to buy it and make ConocoPhillips great again. Believe me. So wonderful.
No way...COP debt load is too high. APLNG is a dud; Divestment of AK would be required. Instead XOM is growing petrochemicals position. XOM looking for quality oil asset plays not whole companies. If an acquisition does occur, it wold require over 50% layoffs to bring COP to the efficiency level of XOM, including massive HQ layoffs. Bartlesville gone, West Houston gone. Canada gone. Be careful what you wish for. XOM more likely to take out APC for their Mozambique and GOM DW position.
none going to buy cop, stop dreaming.