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EXCO Resources Inc. Message Board

  • vzar47b vzar47b Nov 18, 2013 9:27 PM Flag

    Jefferies conference last week

    Been looking for any news today that would have helped print a historic low for this stock. Only thing I found so far was this little blurb on The Street (see Yahoo Finance page for XCO for the link).

    The Deal: Deals Aplenty In the Oil & Gas Fields

    HOUSTON (TheStreet) M&A talk was very much on the minds of executives at Jefferies' energy conference held in Houston last week.

    While press wasn't invited, the investment bank revealed highlights from the sessions on Monday, Nov. 18.

    Jefferies investment banker Ralph Eads said he expected M&A markets to remain relatively quiet. Though there was, for instance, speculation centering on Irving, Texas-based Pioneer Natural Resources (PXD_), Eads said he didn't believe the majors are likely suitors for any exploration and production company, nor does he think smaller combinations are likely. He viewed obstacles to deals in the exploration and production sector as no tax step-ups, valuation issues, personnel shortages and shale fatigue. Companies are more likely to embrace "portfolio management" than M&A, with asset rotation being the "new mantra," and private equity as the likely winner, with EnerVest Ltd. of Houston saying deal flow is the highest it has seen, Jefferies noted. Exco Resources (XCO_) of Dallas, however, expects to close two acquisitions shortly, leading Jefferies to think that sellers of gas properties are finally being more realistic in their expectations.

    [end quote]

    More promises of deals "real soon now". We'll see. I know it depends entirely on the nature of the deal(s), but in general, would new acquisitions be bullish or bearish? Again, I know it depends entirely on the deal (the KKR deal should be studied in business schools), but assuming they aren't trying to spend their way into BK, don't new deals reinforce the growth story that mgmt has been trying to sell? Pure speculation, perhaps there was more than meets the eye to the timing of that Dec 10th Analyst

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