Shale twins’ $26 bln deal can afford to be pricey 12 Feb 2024 Permian producer Diamondback is buying a smaller version of itself in Endeavor, from overlapping acreage to neighboring offices. That implies the price is maybe $1 bln over the odds. Given unique savings the duo can reap in the heart of the US oil boom, the buyer can afford it.
U.S. shale won’t wean the West off Russian crude 11 Mar 2022 Fracking transformed the U.S. oil patch and made America a net exporter. But even with high prices, there are limits. Public companies are wary of over-investing, and even private firms are finding land is scarce. They may struggle to replace more than 10% of Russia's output.
Texas shale deal starts a sprint to nowhere 19 Oct 2020 ConocoPhillips is scooping up Concho for $10 bln after the oil price rout cut its stock nearly in half. Cost cuts are in theory worth three times the premium. But drillers consistently burn cash. Consolidation helps, but oil’s dimming future means they are racing against time.
Oxy victory would help Icahn’s poor oil-patch rep 12 Mar 2020 By raising his stake in Occidental Petroleum, the activist has upped the odds of getting his way, or reaching a truce. It helps that his demands – a new CEO and a sale of the company – both make sense. A trail of rocky energy investments means Icahn could use a high-profile win.
Occidental divi cut puts Buffett in driver’s seat 10 Mar 2020 The oil driller slashed its payout in response to crude prices plummeting. That is the last straw for CEO Vicki Hollub, who staked her credibility on a debt-fuelled purchase of Anadarko. Oxy now looks like an appealing M&A morsel, though all hangs on kingmaker Warren Buffett.
White House can lend U.S. shale a helping M&A hand 9 Mar 2020 Black gold’s rapid price drop makes many Texas drillers and frackers uneconomic, threatening U.S. energy independence touted by President Trump. His administration could offer merger sweeteners, effectively forging state-backed oil giants to compete with OPEC and Russia.
Review: Shale oil exposé misses bigger picture 28 Sep 2018 In “Saudi America” Bethany McLean tackles the U.S. fracking industry. The author who spotted fraud at Enron accurately depicts aggressive wildcatters digging themselves to their demise. But factors that are pushing up global oil prices may yet save the industry from itself.
U.S. oil producers lose grip on global crown 14 Sep 2018 Fields in Texas were meant to help make the country a bigger exporter of black gold than Saudi next year. But pipeline construction is delayed longer just as American inventories are falling. U.S. drillers risk losing control of the market the longer logistics problems linger.
Texan oil dominance teeters on shaky ground 23 Aug 2018 Shale oil helped the U.S. state’s main ports become an exporter of oil for the first time in April. Producers are basking in prices up around 40 percent in a year, and profits that encourage pumping. Tariffs, rising costs and the ease of closing the spigots can quickly change that.
West Texas mergers test shareholder blind faith 21 Aug 2018 A gush of mergers in the oil-rich Permian Basin region has totaled nearly $30 bln in a few months. Consolidation brings down costs, which have been rising. But high prices leave scant margin for error, and synergies may be overstated. “Trust us” strategies don’t suit wildcatters.
BP takes worthwhile gamble with shale deal 27 Jul 2018 The $10.5 bln that the oil major is paying for BHP’s U.S. shale assets is a full price and allows the miner to finally extricate itself from an expensive mistake. But BP is plugging a strategic gap and can easily cut costs. That makes the price appear more reasonable.
Viewsroom: Trump goes hog wild on trade 28 Jun 2018 The U.S. president rejected hard-liners’ calls to ban China investing in sensitive U.S. tech. Yet he’s pushing for tariffs that could cost carmakers $45 bln and is livid Harley-Davidson will no longer make EU-bound bikes in the States. Plus: tapping China’s shale reserves.
Qatar/Exxon love-in makes two types of sense 12 Apr 2018 Deepening its relationship with the Texas-based oil major would tie the Arab state more closely to the U.S. after recent tensions with Saudi Arabia. It also gets Exxon investing in infrastructure. That could open up the global market, to the benefit of both parties.
SandRidge dares Icahn to up the ante 24 Jan 2018 The $690 mln energy company is dropping the controversial, shareholder-unfriendly wolf-pack clause it used to try to defend a now-ditched merger. But it’s not yielding much on the activist’s other demands. That may prompt Icahn to target more than just poison pills and directors.
Big Oil’s discipline reinforces shale’s swing role 22 Dec 2017 OPEC’s restraint has put a floor under the price of crude, but big oil companies will put a lid on it in 2018. Majors worried about oversupply will tighten budgets and focus on areas with quick payback. U.S. shale will be the big beneficiary, reinforcing its global influence.
Exxon’s M&A machine faces Permian dilemma 15 Sep 2017 Buying a West Texas driller is the quickest way for the $337 bln oil giant to catch up with peers on replacing reserves. Valuations have fallen a third or more while Exxon’s remains steady. The trick for CEO Darren Woods is to find enough cost cuts to justify paying a premium.
Viewsroom: Ray Dalio taps his inner communist 14 Sep 2017 Bridgewater’s founder thinks his kindred spirit resides in China’s anti-corruption czar Wang Qishan. Both seek radical transparency – though Dalio’s hunt is tied to forging a business in the Middle Kingdom. Plus: Exxon’s salvation may lie in the oil fields of West Texas.
Permian producers tighten squeeze on U.S. rivals 26 Jul 2017 Hess is joining Anadarko in trimming capital spending as oil prices stay stuck under $50 a barrel. Meanwhile smaller Permian producers show little sign of throttling back. With lean balance sheets and growing efficiency, they look set to continue to inflict pain on competitors.
Permian drillers almost impervious to falling oil 12 Jul 2017 U.S. producer Halcon is selling assets in the Bakken to focus on the Texas region. Growing efficiency and producers’ ability to turn off the spigot quickly if needed keeps investment gushing into the Permian. It will take a bigger bear than falling oil to shake the confidence.
OPEC’s solidarity points to longer production cuts 14 Feb 2017 The cartel has taken two steps forward and one step back. Compliance with output cuts is narrowing the gap between supply and demand, but it is also encouraging U.S. producers to drill more wells. Sustained higher prices may require even more restraint to keep the market balanced.