Hey Oil Barons.......

[T’Boo Ted Marshall 2779]

The O&G sewing circle.  

[Neonmoon 38130]

If rampant and unconfirmed A&D speculation is wrong, I don’t want to be right. 

[tucker 238]

Delete

Edited March 15, 2019 by tucker
Wrong thread

[Llano Estacado 1257]

The O&G sewing circle.  

Sewing Circle LLC is getting acquired by Petro-conjecture. You didn’t hear that from me, but my bro over at Clucking Hen ServCo told me. He does a lot of work for them. A lot.

[skipmcgee 304]

On 3/15/2019 at 3:41 PM, Llano Estacado said:

 

Sewing Circle LLC is getting acquired by Petro-conjecture. You didn’t hear that from me, but my bro over at Clucking Hen ServCo told me. He does a lot of work for them. A lot.

 

Can confirm that Gossip Securities has been mandated as the exclusive financial advisors to the seller.

[Llano Estacado 1257]

Someone gimme some ray of hope. Blow smoke up my ass.

ITC is literally burning thousands of barrels of light distillate as I type this. So there’s that.

[happyfunball 481]

[Trey3216 15450]

• EIA Petroleum Inventories: Crude -9.6M barrels vs. +0.3M consensus, -3.9M last week.
• Gasoline -4.6M barrels vs. -2.4M consensus, -4.6M last week.
• Distillates -4.1M barrels vs. -1.1M consensus, +0.4M last week.

 

 

Knocking on the door of $60 rt now.  

[Trey3216 15450]

Back over $60 for now!!!

[Storm the Field 5360]

Over $62 so far this morning. Highest price in 5 months, and getting a close to a $20 recovery dating back to when we bottomed out at around $42.50 on Christmas Eve.

[Fudge Nuggets 19407]

Chevron buys Anadarko. 

https://finance.yahoo.com/news/chevron-acquire-anadarko-33b-stock-100831106.html

[Okie State 3887]

Holy shit

[936horn 942]

Huge. APC has resisted acquisition for a long, long time.

[T’Boo Ted Marshall 2779]

Wow.

[Fudge Nuggets 19407]

19 minutes ago, 936horn said:

Huge. APC has resisted acquisition for a long, long time.

We've seen it over and over since the crash... old management team departs, new management team sells out.

Anadarko, Baker Hughes, Cameron, etc. etc. etc.

[Llano Estacado 1257]

I wouldn’t be surprised is SWN or Anadarko gets bought by one of the bigs. 

Go rep this man for calling it in March.

Contracted for both in the Gulf. Own stock in neither at the moment. Curious how the consolidation looks in Houston/woodlands, domestic production, and international.

[tucker 238]

30 minutes ago, Llano Estacado said:

 

Go rep this man for calling it in March.

Contracted for both in the Gulf. Own stock in neither at the moment. Curious how the consolidation looks in Houston/woodlands, domestic production, and international.

 

lots of job cuts coming 

[Storm the Field 5360]

Quote

Anadarko employs about 4,700 people companywide. In an interview, Chevron Chief Executive Michael Wirth downplayed any big job losses and said Chevron isn't looking to sell real estate in The Woodlands.

Yeah, the CEO kinda has to say that, but there's definitely gonna be lots of redundant positions. 

[Llano Estacado 1257]

No doubt. “Efficiencies” “redundancies” and “synergies” being addressed after its finalized.

[Okie State 3887]

Companies don't acquire unless they believe efficiencies can be found. Efficiencies equal layoffs. Just the way it goes.

[Neonmoon 38130]

59 minutes ago, Llano Estacado said:

 

Go rep this man for calling it in March.

Contracted for both in the Gulf. Own stock in neither at the moment. Curious how the consolidation looks in Houston/woodlands, domestic production, and international.

 

They couldn’t resist the offers forever. I wonder if this triggers more down the road. 

[The Royal We 3090]

Crazy.  I assume this will spur quite a few new PE backed companies as they sell off the assets that they don't want from APC.

[Dutchrudder 11228]

Oh shit, there's absolutely no chance Chevron sells the downtown buildings and moves North to the woodlands, right? Right????

[Dutchrudder 11228]

Anyone have a good rundown on Anadarkos current assets? I know they are mostly in the Permian Basin and GoM, but I assume they have significant interests elsewhere.

[Storm the Field 5360]

8 minutes ago, Dutchrudder said:

Anyone have a good rundown on Anadarkos current assets? I know they are mostly in the Permian Basin and GoM, but I assume they have significant interests elsewhere.

Well, in addition to all of their leasehold, they also own hundreds of thousands of mineral acres outright, especially in CO/WY. Just about every mineral interest that Union Pacific ever owned ended up in APC.

Edited April 12, 2019 by Storm the Field

[TonyTexas 10683]

Occidental Petroleum (NYSE:OXY) is now considering its options after bidding more than $70/share for Anadarko (NYSE:APC) in an earlier cash and stock offer but ultimately decided to go with Chevron's (NYSE:CVX) $65/share cash and stock deal, CNBC's David Faber reports.

OXY's offer contained more cash than the CVX bid and would have required a shareholder vote, according to the report.

Faber also says the breakup fee in the Chevron-Anadarko deal totals 3% of the deal price.

OXY, which had been up sharply in pre-market trade, now -1.7%.

[Fudge Nuggets 19407]

2 hours ago, Dutchrudder said:

Anyone have a good rundown on Anadarkos current assets? I know they are mostly in the Permian Basin and GoM, but I assume they have significant interests elsewhere.

LNG in Mozambique.  Production in Ghana, lot of exploration potential offshore South Africa.

Believe they have some stuff in Colombia as well.

[Fudge Nuggets 19407]

If OXY bid $70 but the took $65 instead, would this be maybe the first time the ambulance chasing lawyers that file class action suits against the sellers might have a chance?

[Telegraph_it 3376]

2 hours ago, Dutchrudder said:

Oh shit, there's absolutely no chance Chevron sells the downtown buildings and moves North to the woodlands, right? Right????

I hope so. 

[Dutchrudder 11228]

If OXY bid $70 but the took $65 instead, would this be maybe the first time the ambulance chasing lawyers that file class action suits against the sellers might have a chance?

Yeah, I'm not quite clear on that. It said the Oxy deal would have had to be approved by shareholders, was the CVX deal not required to take a vote?

[Okie State 3887]

Saw OXY was weighing their options and mentioned a potential hostile takeover. Probably just unfounded speculation, but that could get interesting.

[Fudge Nuggets 19407]

18 minutes ago, Dutchrudder said:

22 minutes ago, Fudge Nuggets said:

If OXY bid $70 but the took $65 instead, would this be maybe the first time the ambulance chasing lawyers that file class action suits against the sellers might have a chance?

Yeah, I'm not quite clear on that. It said the Oxy deal would have had to be approved by shareholders, was the CVX deal not required to take a vote?

Yeah, heaven forbid the owners of the company have a say in it.

[Fudge Nuggets 19407]

Ok oil barons, who's next on the selling block?  I know the post from a month ago mentioned SWN and APC so is SWN the next likely takeover target or is there someone else right for the plundering?

Blue horseshoe loves __________ ?

Don't let me down, got money burning a hole in my pocket.

[TonyTexas 10683]

24 minutes ago, Dutchrudder said:

28 minutes ago, Fudge Nuggets said:

If OXY bid $70 but the took $65 instead, would this be maybe the first time the ambulance chasing lawyers that file class action suits against the sellers might have a chance?

Yeah, I'm not quite clear on that. It said the Oxy deal would have had to be approved by shareholders, was the CVX deal not required to take a vote?

Yeah. The CVX deal will require shareholder and regulatory approval.  

[Fudge Nuggets 19407]

CVX stock down today due to the takeover which is normal.  However, OXY is also down almost 3% but they lost out on their bid.  Is this a dislocation that could crib a couple of percentage points?  Or is the worry that OXY will get desperate and overpay for either APC in a hostile bid or another company just to be seen "making a move"?

[Dutchrudder 11228]

15 minutes ago, Fudge Nuggets said:

Yeah, heaven forbid the owners of the company have a say in it.

Not saying they shouldn't, but the few articles I read point this out for the Oxy deal, but not explicitly for the CVX deal, which begs the question. 

[Fudge Nuggets 19407]

Just now, Dutchrudder said:

Not saying they shouldn't, but the few articles I read point this out for the Oxy deal, but not explicitly for the CVX deal, which begs the question. 

We're on the same page.  I noticed the same thing with all the articles and still haven't figured it out.  Any deal of this size will have to get shareholder approval and as TT pointed out regulatory approval. 

[TonyTexas 10683]

4 minutes ago, Dutchrudder said:

Not saying they shouldn't, but the few articles I read point this out for the Oxy deal, but not explicitly for the CVX deal, which begs the question. 

Poor reporting. This is directly from Chevron's press release

Quote

The transaction has been approved by the Boards of Directors of both companies and is expected to close in the second half of the year. The acquisition is subject to Anadarko shareholder approval. It is also subject to regulatory approvals and other customary closing conditions

https://www.chevron.com/investors/press-releases

Edited April 12, 2019 by TonyTexas

[Fudge Nuggets 19407]

45 minutes ago, Fudge Nuggets said:

LNG in Mozambique.  Production in Ghana, lot of exploration potential offshore South Africa.

Believe they have some stuff in Colombia as well.

Scanning through some articles and was reminded they have a presence in Algeria as well.  Depends on the size of their assets there, but based on how Chevron's new CEO prefers domestic assets and the company has been selling off international assets hand over fist I wouldn't be surprised to see them let Algeria go.  They are looking to dump $15 - $20 bln worth of assets by 2022.

[Fudge Nuggets 19407]

3 hours ago, Dutchrudder said:

Oh shit, there's absolutely no chance Chevron sells the downtown buildings and moves North to the woodlands, right? Right????

I know before the crash it seemed every year a rumor would come up that Chevron was going to move at least some of their offices out towards The Woodlands, but with this deal I think if anything the Anadarko building gets sold - question is, who would buy it?  I think it's a safe bet that Chevron is not going to sell their downtown buildings.

[Okie State 3887]

Do they own the buildings? Figured they'd just lease them.

[Fudge Nuggets 19407]

Quote

Chevron also operates from office towers in Houston, Texas, where it purchased the 1500 Louisiana Street and 1400 Smith Street from former Texas energy giant Enron. Chevron is also planning a new office tower in downtown Houston next to its existing properties at 1600 Louisiana Street.^[94] The building will stand 50-stories and 832 feet. Upon completion, it will be the fourth tallest building in Houston and the first 50-story building constructed there in nearly 30 years.

https://en.wikipedia.org/wiki/Chevron_Corporation

 

Quote

Anadarko Petroleum Corp. has bought its corporate headquarters campus in The Woodlands for $215 million. Anadarko is the largest single employer in The Woodlands, with about 1,700 workers in the community north of Houston.

 

 

After almost a decade leasing, Anadarko Petroleum Corp. now owns its home in The Woodlands.

https://www.chron.com/business/article/Anadarko-now-owns-its-home-in-The-Woodlands-1702995.php

Appears both companies own their office buildings.  One caveat, the article about Anadarko's building is 9 years old who knows what they may have done since then in the name of "increasing shareholder value"?

Edited April 12, 2019 by Fudge Nuggets

[Llano Estacado 1257]

CVX owns the buildings DT and a lot there on Jefferson between them and KBR.

APC has 2 buildings in the Woodlands (tallest in Montgomery Cnty). Believe they own both. WWHQ.

Curious what all happens for CVX DT Houston, redundancies wise? I’m just familiar with project groups. Cost controls, accounting, etc is that based out of Cali? US Shale? (I know 3 engineers that moved to Midland for them) CVX Gulf business unit has an office in Covington LA. Unless I’m mistaken they still have other presence in Houston on the Phillips chemical side.

[Okie State 3887]

Chevron Phillips has a corporate office in The Woodlands.

[mycox 587]

Chevron isn't leaving downtown. They have plans on building a 50-story tower and just tore down the old Houston Press building.

[Okie State 3887]

Probably true, but plans change all the time in the corporate world.

[Neonmoon 38130]

If there is a run on mid majors, I would think SWN, Pioneer, or Hess could be A&D targets. 

[The Royal We 3090]

Pioneer, Whiting, Cimarex, Devon - EOG if someone wanted to get really nuts.

[Fudge Nuggets 19407]

I think EOG would be more likely to gobble up smaller players to become even bigger.  I don't think they would ever want to be a CVX or XOM - and as a stockholder I hope they don't have those aspirations.  But they could separate themselves from the likes of OXY with the right acquisition(s).

[Fudge Nuggets 19407]

18 minutes ago, The Royal We said:

Pioneer, Whiting, Cimarex, Devon - EOG if someone wanted to get really nuts.

Shell is probably out of the mix for another takeover after their ill-timed buyout of BG, but if another big boy (XOM / BP / TOT) got fiesty, could Apache be a target? 

Edit:  Surge of 11% in PXD today would indicate a lot of folks think they are ripe for the pickings.  Of course that might be Einhorn getting his nuts squeezed with his huge short position he initiated at the bottom of the bust (just joking, don't know if he even still has that position or not).

Edited April 12, 2019 by Fudge Nuggets