Look at XOM buying XTO, COP buying Burlington and now the Noble purchase of Rosetta. None of these acquisitions will pay out. Gas prices went into free fall after XOM bought XTO. COP bought Burlington for the natural gas based assets. Neither company has made a return because they overpaid for the assets. Yet, financially before these acquisitions XOM and COP were strong so they could absorb the FUBAR. And, Noble will survive the poor decision to buy Rosetta. The Rosetta acquisition was a good idea that turned out to be a disaster because Stover got too anxious and paid 2X as much as he should have. But, Noble will survive
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Good point, EnCana's purchase of Athlon was a major screw up....talk about buying high...that one is it. Noble's purchase of Rosetta does not look that bad but considering how much Rosetta was choking on it's debt and how much the industry was turning downward, our senior leaders should have known to have patience. It might have something to do with their envy of Anadarko. Making stupid purchases is not going to get us to Anadarko level at all. Either way, I don't either think we will be bought out. There are too many other struggling companies that are going to go bust for the big guns to swallow up. I am frustrated that we did the Rosetta deal but nobody asked for my opinion when we were evaluating it
EnCana's purchase of Athlon and Whiting's purchase of Kodiak... both at over $100 oil. Big disasters given prices now. Who knew? When Noble bought Rosetta they knew that the industry was in turmoil....
I don't see how Noble can survive. At this time it should be a $3 stock and going lower.