Chevron has been building cash, $27 billion. With that much cash, they are most likely looking for a purchase. I think that COP is one of the targets as Chevron and ConocoPhillips have been and continue to be more and more intertwined as the years pass. Looks like a great opportunity for both organizations to me.
Not gonna happen. You are correct regarding CVX building the cash hoard but the Feds are not about to let this merger take place. WSJ stated this past week that CHK might be a target if not for their complicated finances. However Iccan and the boys in Memphis will get a take over of CHK in the future. I am in agreement with the SD post as a very likely deal. Why not SWN? Ultra? There are 25 + companies available for a take over but rest assured it ain't gonna be COP!
"Chevron has been building cash, $27 billion. With that much cash, they are most likely looking for a purchase. I think that COP is one of the targets... "
Not likely, I think you are dreaming. $27billion is a lot, but COP's market cap is over $68billion, and if Chevron did attempt to buy out COP, they would have to pay a hefty overhead on that $68billion to sweeten the pot for COP shareholders.
OK, let's say that COP would go for a 20% premium. With a $27/28b dollar down payment +- 34% from CVX as a down pmt and the rest in shares outstanding that would be what I would call a greatly leveraged deal looking into the future as to where COP's growth assets are vs CVX.
I concur. CVX would have to pay a premium for COP, and I am not sure the deal would pass muster with US government on concerns of anti-trust violations. COP is a sweet deal staying alone: growing revenue, growing dividends (now yielding over 4.5%), and rising oil prices over time (in real dollars). JMHO. I also hold XOM (thinking it a great NG play, also).