Goldman: "More M&A to come"
Posted: Fri Jul 24, 2020 1:40 pm
"The Chevron (NYSE: CVX) purchase of Noble Energy (NASDAQ: NBL) may spark more M&A activity. Goldman Sachs said more M&A could be positive for the macro outlook for oil because consolidation will translate into slower production growth. “We believe strip prices are too low and are likely to move higher in 2021, a catalyst not only for fundamental upside to E&P stocks but also for potential M&A values,” Goldman Sachs said in a note.
Most of our Sweet 16 companies are "Takeover Targets" at their current share prices.
One thing to keep in mind is that the Super Majors have extremely low cost of capital. They can takeover a company with lots of debt and refinance the debt at much lower interest rates. They are primarily interested in companies that have large blocks of acreage in areas where they already have operations.
Most of our Sweet 16 companies are "Takeover Targets" at their current share prices.
One thing to keep in mind is that the Super Majors have extremely low cost of capital. They can takeover a company with lots of debt and refinance the debt at much lower interest rates. They are primarily interested in companies that have large blocks of acreage in areas where they already have operations.