Random Observation: Close Working Relationship Between CLR and BR -- The Multi-Year-Multi-Well Three Forks Study

Midnight Run wells: CLR and BR.

CLR mentions BR's Sunline 11-1TF well as part of the multi-year, multi-well Three Forks study.

For newbies: BR is a wholly-owned subsidiary of COP. Flashback:

On the evening of December 12, 2005, ConocoPhillips and Burlington Resources Inc. announced they had signed a definitive agreement under which ConocoPhillips would acquire Burlington Resources Inc. The transaction has a preliminary value of $33.9 billion.

This transaction is expected to close on March 31, 2006, subject to approval by Burlington Resources shareholders at a special meeting set for March 30, 2006. Under the terms of the agreement, Burlington Resources shareholders will receive $46.50 in cash and 0.7214 shares of ConocoPhillips common stock for each Burlington Resources share they own. This represents a transaction value of $92 per share, based on the closing of ConocoPhillips shares on Friday, December 9, 2005, the last unaffected day of trading prior to the announcement.

COP is one of Warren Buffett's ten largest holdings in Berkshire Hathaway. 

Earlier this year, COP spun off Phillips 66, creating the newest independent US refiner.

CLR, market cap: $14 billion.

COP, market cap: $70 billion; cash on hand: $1 billion; operating cash flow: $18 billion.

PSX, from Motley Fool:

Last summer, Berkshire Hathaway purchased shares of Phillips 66 stock over and above what it received when the company was spun off from Conoco. Since the spin-off, Phillips has outperformed its former parent company and major indexes. Since mid-July, Phillips has gone from around $32 per share to today's $45.15. In addition to refineries, the company conducts many of the marketing operations for Conoco, including the branded "76" gas stations.

So far, Phillips 66 looks like another win for the Berkshire money managers and further evidence that they have what it takes to deliver shareholder value.

PSX shares are rising significantly today. [Disclaimer: this is not an investment site; make no investment decisions based on what you read at this blog.]

Interesting observation from Motley Fool, again, today, regarding COP:

ConocoPhillips, meanwhile, is Buffett’s ninth most bullish investment, as it accounts for a little over $1.6 billion of his 13F portfolio. Since its split, the upstream portion of the company has traded in tight range of $56-$57, as its second quarter net income fell year-over-year.

Conoco has also reportedly ended its operations in the Caspian Sea, which was expected to have between 9 and 16 billion barrels of oil, whilst selling its stake in LUKoil. While it appears that investors don’t like the company’s new streamlined look, bargain-hunters – Buffett included – may find it attractive.

A significant element of share price of an oil company is its proved reserves.