By Paul Sankey
Published on June 1, 2024 at 12:27 PM
“That must mean we’re up here at Gobbler’s Knob, waiting for the forecast from the world’s most famous weatherman, Punxsutawney Phil.” Phil Connors (Bill Murray), Groundhog Day (1993) We are back to writing about E&P M&A … again. Our conclusions are broadly unchanged: Big companies are being incentivized by the market to take over the small, but with an evolution on the margin that finds asset quality now of equal importance to valuation; we are …
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By Paul Sankey
Published on May 29, 2024 at 7:55 AM
First thought is not only Devon, as always the bridesmaid, but ever the bridesmaid to ConocoPhillips, who trumped them for Shell’s Permian asset package (~$9bn) and now announces the takeover of Marathon Oil. Devon was seen as in pole position to take over MRO; these are multi-basin deals and the best first for MRO were COP or Devon. Second thought, good news to get a decent premium back in oil deals. “It shows a decent …
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By Paul Sankey
Published on May 4, 2024 at 2:03 PM
The best E&P earnings performance at the 2/3 mark through reporting season gets a deep dive. Source: Bloomberg, Sankey Research Civitas is the company that sparked our Heavyweights thematic note of 2023. A living, breathing case study in our Heavyweight thesis that bigger is better in energy today. We debated timing a note on CIVI – publish in front of the earnings print last week (so before CIVI reported after the market Thursday) or publish …
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