https://www.bloomberg.com/news/articles/2020-10-14/conocophillips-is-said-to-be-in-talks-to-buy-concho-resources
5 replies (most recent on top)
I think just about any company that is still foolish enough to believe they will make money drilling unconventional Permian deserves to overpay for whatever they buy. And they will.
Agree with Jimbo. If the market stays where it is right now, pioneer stock does not perform, anything is on the table including the hostile take over. Pxd would be a good snap for conoco or anyone else who is looking for a better position in the Permian.
As CEO S. S. has always said, "Everything we have is for sale, at the right price." As anyone that has done M&A in the E&P side of the industry purchases can be friendly or unfriendly, Pioneer has no poison pill that they can swallow. Friendly would be a merger/marriage of sorts where there is an economy of scale which would result in an large annual savings in G&A. Unfriendly would be a 3rd party buying or having tendered Pioneer stock until they have a controlling interest and some board members. This is how Carl Icon and T. Boone Pickens did it. Resulting departure packages would depend on the acquiring company. There are officers and Dir that have protection contracts in the event of either type of sale, after that the OIL PATCH RULE IS APPLICABLE "The closer to the Wellhead the better the surviving potential" If oil stay low 40.00 and Pioneer's stock does not perform well in stockholder terms there is more value to the stockholders by selling and tendering stock or breaking up the company for added value. E&P is going to be a wrecking yard for the next several years, fasten your seat belt
I know you guys left at PXD are praying for a buyout, but your chances are probably not markedly higher than any other company. Because we all are. Every single one of us who works for an independent E&P (i.e. garbage company) is praying for a buyout. The speculation about it on this board is so ridiculous, because it probably won't happen. There are quite a few other pretty girls at this dance just waiting to be asked by the few dudes who actually have the courage to make a move.
Conoco doesn't want you; get over it.
Difficult to see a hostile takeover when no one is offering big premos to investors...
To be fair it could be anyone. All it shows is that conoco is seriously shopping.
Maybe the rumor of conoco hostile take over pxd is not that far from reality.