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Concho Resources Inc. (CXO)

NYSE - NYSE Delayed Price. Currency in USD
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57.48-4.54 (-7.32%)
At close: 4:00PM EST

59.10 +1.62 (2.82%)
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  • B
    Betty
    i am late to the party.what is the buy out price?
  • o
    oilman95762
    Yogi Berra once famously stated: "It ain't over till it's over". Is COP the last and final offer?? I can't believe that the powers that be will let COP slip off with this Permian prize with no competing offers. Geezzzz....Only a 15% "premium" off a 4 month low?? Give me a break!! I find this totally incredible!! The oil & gas industry is going off the deep end!!
  • o
    oilman95762
    A couple of recent articles on CXO focus on the proved reserves of 1 billion barrels and that considering enterprise value, the reserves are already valued more than recent oil company buyouts. However, there are a couple of valuable intangible factors that aren't mentioned in the analysis. 1) Probable and possible reserves based on undeveloped CXO Permain assets and 2) Substantial acreage under lease that would compliment companies already operating in the Permian. Food for thought as the saga unfolds.
  • N
    Navarre55
    So you had a deal worth $50.22 in COP shares or 1.46 of COP shares per CXO shares. As of today that deal is now worth $47.742. Now June 30 2020 second quarter has long term debt of $4 billion . Oil production of 200,000 barrels per day at a cost at well of $7.49 per barrel. Why so high? You are drilling in the best of the best shale oil basins.

    MRO has oil production of 197,000 per day and cost at well of $4.09 per barrel in Eagles ford with lateral foot of pipe at $750 per foot and $450 a lateral foot in the Bakken with well head cost below the $4.09 level. Throw in we had $1.1 billion in cash Oct 1 and paid off $100 million in debt and will have a 3 cent dividend again makes you wonder why if CXO needed cash why did they not just sell off acres they are not using and got MRO to show them how to get cost down.

    Folks MRO has break even cost of oil at $35 in Eagles Ford and in the Bakkens $30 per barrel. Every dollar over those prices is $55 million. Free cash flow.

    I don`t buy this having to sell CXO when it`s assets are trading like MRO assets. First Devon buys WPX Energy . Then CVX buys Noble energy . Now COP buys CXO. What do they have in common? All three companies were stolen from shareholders. Less oil will be produced in Nov and Dec in the oil basins. Next year we could see $50 dollar oil. Why the rush now?
  • D
    Demian
    Can someone school me on this: if the deal is for COP to pay a 15% premium of CXO's share price as of the close on 10/13. That translates to 15% x $44.14 = $50.76. So, is the fluctuation of price happening now because there's some uncertainty that the deal actually goes through? Or is the 10/13 price not set in stone; rather, the sale price can fluctuate depending on market reactions between now and the date the deal closes and that might affect the final price?
  • o
    oilman95762
    CXO: The current speculation is that COP will buy CXO for $50-$55. If that's the final price, consider this...
    1) CXO is in much worse financial condition than believed and is deperate for a buyout. 2) If those high quality Permian assets can be bought so cheap, then the entire oil & gas industry will be "dead money" for years to come. BTW -- In my view, a Biden administration will boost future crude oil prices. Why? Any restrictions on leases or drilling will result in future production declines which is badly needed to bring supply/demand back in balance. IMO
  • o
    oilman95762
    CXO: Here's a thought. The COP market cap is only $37 billion plus $15 billion of debt, so they may be too small and overextended to buy CXO. However. maybe bigger fish will enter the picture now that CXO appears to be in play. Chevron could have an interest in expanding their position in the Permian since the company had previously made a run at Anadarko. Food for thought. IMO
  • A
    ALFRED
    For all those signing on to all the lawsuits against the COP. CXO deal just think: Would you rather own shares in an international multi sourced revenue company, or one which is basically a one trick pony situated in ONE location subject to the whims of political ping pong? I am not thrilled with the buyout price but feel a sense of relief of having dodged a very large bullet....
    Bullish
  • R
    Rams
    Can someone help here. I have $100 Jan 2022 calls, look like not reacting to the price action of today. What would happen if BO price around 70. Thanks in advance.
  • g
    gary
    CXO investors are getting hosed. They get huge long term capital losses this year. I hope they own some Tesla or Apple to offset their losses.
    Bearish
  • t
    tds39
    If this deal goes through as reported you need to load up on COP, they are stealing this company!
    CXO has an Enterprise Value of $13.4 billion! The lowest price target of the 30 Analysts who follow CXO is $51.00, with and average of $71.00 and a high of $99.00. Completely bewildering! Will Chevron let this happen, one of their main competitors being gifted some of the most valuable assets in the Permian Basin?
  • D
    Dan
    This is more likely to be a stock-for-stock merger like the DVN + WPX merger that will close in early Q1. So, it doesn't matter what COP's debt level is. CXO will had a lot of running room for COP. See Energy Prospectus Group. They recently published a detailed report on CXO.
  • o
    oilman95762
    News Flash: Looks like ConocoPhillips is in talks to buy Concho. Based on the Chevron deal for Noble, they may be trying to buy Concho on the cheap. In my view, the CEO should walk away from any offer under $75.
  • c
    c
    Concho is a great way to get into Conoco - at a slightly cheaper price, but one will forgo the healthy Conoco dividend in the interim. Conoco much better balance sheet. Price being paid for Concho is fairly low so great deal for Conoco. Unlikely to see other Concho suitors. $500M of projected savings post-merger.
  • N
    Navarre55
    CXO has 520 ,000 acres in Delaware, 280,000 acres in the Midland. MRO which trades down in the bargain basement of Kmart if it was still open has 390,000 acres in Bakken, 91,000 acres in Permain, 300,000 in Stack/scoop, 180,000 acres in Eagles ford, 250,000 acres in Louisana Austin Chalk, The Alba gas and oil field in EG with 4 companies with the LPG plant owning 60 percent.
  • U
    UberRock
    Ohhhhh ... how hard the once proud fall....

    Since the RSPP deal at ~$9B, the $100MM Dominator non-success, and CXO's apparently over-aggressive down-spacing in their former economics -- looks like the wheels came off.

    Remember when this company had a post RSPP EV of ~$30B??
  • j
    john
    cop will save 500 million a year by spending less on exploration since they now have all the oil they can pump .This is what the ceo of cop said in a interview.
  • o
    oilman95762
    The CXO buyout "premium" is now gone as COP tanks. There should have been a guaranteed value in the buyout agreement and many all stock deals are structured that way since the acquirer stock usually falls. Bottom line, it's a lousy deal for CXO bagholders. IMO
  • B
    Benjo
    Doesn't matter. COP is facing lot of problems.
  • r
    ronnie
    The deal with cónico is being finalized and could be released as early as Monday....
    Bullish