Could or should XOM buy CoP - what would happen to shareprice?
12 replies (most recent on top)
XOM has no interest in COP. All tier 2 assets and lower tier employee quality, plus high debt load. XOM assessed every COP asset and passed on it.
If for some reason you believe that XOM buying COP will save the company and our sh--ty little jobs, think again. Or think back to Burlington. If XOM buys COP and there is redundant staff in all the support functions, who goes....XOM people or the COP people who don't know the XOM way? If you survive this mess, remember that XOM annually cuts 10% of staff. Yes, annually. This keeps everyone on their toes so as to not end up in that bottom 10%, but sometimes that math just works against you.
... there has to be at least one company that sucks up the crap assets and makes them work - ConocoPhillips!
COP asset base is crap. XOM Oil sand assets are better than COP. COP GOM acreage is expiring and generally worthless.
Why buying the whole thing (including the dysfunctional and lazy culture) if you can buy it piecemeal and replace the crap with your well educated employees?
PSX is the stock to own...good dividend and a 30 premium on a buyout
PSX is the more likely takeover target
Mulva definitely dealt COP this hand but Ryan and Co. sure played it poorly!
No one wants to deal with the mess that Mulva left
Waaaaayyyyy ....better oil and gas companies that fit Exxon.
COP has some good assets. However, the $30+ billion of debt and a dysfunctional culture is not appealing. At $40-$50/share it will probably not happen. However, if a chain of events (bad production, drop in the price of oil, credit downgrade, etc.) brings the share price below $30, it might happen. I'd say that there are better oil companies to fit into the XOM portfolio.
It's a pipedream, 30 billion in debt that ain't gonna happen.