Sweet 16 Takeover Targets
Posted: Wed Jan 04, 2012 11:24 am
Potential E&P takeout targets at UBS
UBS believes there has been a shift buy the Majors from net sellers of U.S. properties to net buyers. The firm said enormous resource potential from the unlocking of shale gas and oil development coincides with a time when Majors have been raising cash flow due to higher oil prices. UBS believes the most likely E&P M&A takeout targets are: Anadarko (APC), Cabot Oil & Gas (COG), Continental Resources (CLR), EOG Resources (EOG), Oasis Petroleum (OAS), Plains Exploration (PXP), Range Resources (RRC), SM Energy (SM), and Southwestern Energy (SWN). :theflyonthewall.com
OAS and RRC were added to this year's Sweet 16 because they have 25% to 30% production growth locked in, they are both going to report very significant increases in their proven reserves and BOTH ARE PRIME TAKEOVER TARGETS. These are the size companies the majors go after when they want to get into a major play. OAS is a pure play on the Bakken. RRC holds close to a millionion acres (most of it in the core area) of the Marcellus Shale. - Dan
UBS believes there has been a shift buy the Majors from net sellers of U.S. properties to net buyers. The firm said enormous resource potential from the unlocking of shale gas and oil development coincides with a time when Majors have been raising cash flow due to higher oil prices. UBS believes the most likely E&P M&A takeout targets are: Anadarko (APC), Cabot Oil & Gas (COG), Continental Resources (CLR), EOG Resources (EOG), Oasis Petroleum (OAS), Plains Exploration (PXP), Range Resources (RRC), SM Energy (SM), and Southwestern Energy (SWN). :theflyonthewall.com
OAS and RRC were added to this year's Sweet 16 because they have 25% to 30% production growth locked in, they are both going to report very significant increases in their proven reserves and BOTH ARE PRIME TAKEOVER TARGETS. These are the size companies the majors go after when they want to get into a major play. OAS is a pure play on the Bakken. RRC holds close to a millionion acres (most of it in the core area) of the Marcellus Shale. - Dan