For those investors unhappy that "their" company is not returning wealth in the form of dividends, note this article from Mike Fitzsimmons over at SeekingAlpha.
Summary:
- Rumor has it that Conoco Phillips intends to purchase Concho Resources. The combination would make COP a major force in the Permian Basin.
- I've been worried about a big acquisition because Conoco was holding so much cash and not returning it to shareholders in the form of dividends.
- I estimate it would take at least $13 billion+ to take out Concho - that would be ~$13+/boe based on Concho's proved reserves.
- Certainly Concho is cheaper than it was pre-Covid, but that doesn't mean it is worth it for COP to double-down on more O&G assets in an age of energy abundance.
If I had to name one contributor I feel "most safe" with over at SeekingAlpha, it is Mike Fitzsimmons. Long story. Trust me.
Whatever.
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