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.
Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.