The all-stock transaction translates to a slim 15% premium to Concho's share price on October 13, the day before rumors of a takeover swirled on Wall Street. ConocoPhillips is concentrating on international exploration opportunities that provide both scale and flexibility, with international new venture activity ongoing in Chile and Colombia. "It is a bit of a contrarian move to double down on oil and gas at a time when it's unpopular in the investment community," said Pavel Molchanov, energy analyst at Raymond James. And it's no coincidence Conoco is focusing on the Permian Basin, the shale hotbed that made the United States the world's largest oil producer.
"These are cheap valuations. The companies said the deal will make the new.
The companies said their average cost of supply will be below $30 a barrel, compared with current prices around $40.
Updated 1429 GMT (2229 HKT) October 19, 2020.
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That's why Conoco didn't have to spend that much in this deal, which is its first major takeover since 2005. Could this be the cure to our plastic problem? Many investors would simply rather bet on Tesla and companies viewed as the solution.
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Like the rest of the sector, Conoco and Concho have been slammed by weak oil prices, frustration with the industry's history of losing money and the rise of socially conscious investing amid the climate crisis. Terms of Service apply. Guthrie to Trump: You're the President, you're not some crazy uncle!
Democratic nominee Joe Biden has proposed banning new oil and gas permitting on public lands and waters. The industry could also become unpopular in Washington depending on what happens in next month's election. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved.
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Beyond the climate crisis, the oil industry is still reeling from two massive oil crashes in just the past six years.
ConocoPhillips is in talks to acquire rival Concho Resources Inc., according to people familiar with the matter, as the largest independent energy producer looks …
Factset: FactSet Research Systems Inc.2018. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. ConocoPhillips to Buy Shale Rival Concho for $9.7 Billion — 2nd Update, ConocoPhillips to Buy Concho Resources in $9.7 Billion All-Stock Transaction, ConcoPhillips to buy Concho Resources in an all-stock deal valued at nearly $10 billion.
Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. The rise of ESG and heightened awareness of the climate crisis have contributed to historically weak valuations in the oil industry. Yet the deal may not require a massive oil price recovery to be viewed as a success. All rights reserved. If Democrats sweep the White House and Congress, new regulations targeting fossil fuels could be on the way. You can change your choices at any time by visiting Your Privacy Controls. Last year seems so long ago now, but oil and gas people will recall that 2019 was supposed to have been when the …
Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Despite the gloom-and-doom in the oil industry and the specter of a blue wave in Washington, ConocoPhillips is doubling down on crude by making a major acquisition. Both companies have lost more than 40% of their value in 2020.
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The mood is so glum in the oil industry that European oil majors are pivoting away from oil and gas in favor of renewables and low-carbon solutions. Biden has also laid out a. © Copyright 2020 Morningstar, Inc. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN.
ConocoPhillips increases dividend by one cent to 43 cents a share MarketWatch 11:47 Fri, 09 Oct. Quote Stock Analysis News Price vs Fair Value Trailing Returns Financials Valuation Operating Performance Dividends ... ConocoPhillips to Buy Shale Rival Concho for …
ConocoPhillips Provides Preliminary Third-Quarter 2020 Operational and Financial Update and Announces Intent to Resume Share Repurchases of $1 Billion During the Fourth Quarter …
The latest, set off by the pandemic and an epic price war between Russia and Saudi Arabia.
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