Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Energy Outlook May Drive Takeover Wave

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
 
salin Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Apr-18-04 05:54 PM
Original message
Energy Outlook May Drive Takeover Wave
Energy Outlook May Drive Takeover Wave

April 18 By Joseph A. Giannone
NEW YORK (Reuters) - Confidence that oil and gas prices will remain at lofty highs for years to come will spark a new wave of takeovers and asset sales among North American production companies, analysts and investment bankers say.

Since late last year, investors have sent independent oil and gas producer stocks to record highs amid growing confidence energy prices will not soon settle down. Now company executives are making the same bet, bidding on resources they are confident will generate strong returns over the long haul.

"We believe that merger and acquisition activity will increase," said David Heikkinen, an oil company analyst for Hibernia Southcoast Capital. "The expectations for long-term prices are higher than they had been historically."

On Thursday, Canadian major EnCana Corp. <ECA.TO> agreed to buy western U.S. producer Tom Brown Inc. <TBI.N> for $2.2 billion in cash plus assumed debt. A week earlier, offshore pioneer Kerr-McGee Corp. <KMG.N> said it would acquire Westport Resources Corp. <WRC.N> in a $2.54 billion stock swap.

Meanwhile, Murphy Oil Corp. <MUR.N> sold oil and gas fields in western Canada for about $624 million to Pengrowth Energy Trust <PGF_u.TO> and Canadian Natural Resources Ltd. <CNQ.TO>

This activity helped fuel further advances in the shares of other producers that specialize in onshore North American natural gas, amid speculation they too may become takeover targets. Big gainers on Thursday included Quicksilver Resources Inc. <KWK.N> and Evergreen Resources Inc. <EVG.N>

more: http://abcnews.go.com/wire/Business/reuters20040418_58....

salin's comments... where in the world is Ken Laywaldo... lurking in and around any of these companies - at least in legacy and inspiration?
Printer Friendly | Permalink |  | Top
daleo Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Apr-18-04 06:56 PM
Response to Original message
1. Yes, but how will this help peak oil?
A declining resource is a declining resource, no matter who owns it. This money would be better spent on research into alternatives.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Sat Apr 19th 2014, 11:01 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC