Dvn to buy mro

[Fraser921]

Todays rumor

[ChuckGeb]

I favor APA MRO merger.

[Fraser921]

Oil and gas player Devon Energy Corp (NYSE:DVN) is reportedly exploring potential acquisition opportunities to bolster its presence in the U.S. shale sector and has engaged in preliminary discussions regarding a potential merger with Marathon Oil Corp (NYSE: MRO).

Marathon Oil boasts a market capitalization of approximately $17.5 billion.

Citing sources close to the discussion, Bloomberg noted that combining the two companies makes strategic sense due to their overlapping operations in several key basins across the Midwestern United States, including Oklahoma, Texas, and New Mexico regions.

In addition to the talks with Marathon Oil, Devon Energy is also actively considering a strategic move involving CrownRock LP, a privately held company operating in the prolific Permian Basin.

The report added that CrownRock has been up for sale and could potentially command a price exceeding $10 billion.

[ChuckGeb]

I think the CrownRock acq is more likely. However in that I have been shedding Devon and adding MRO I’ll take. Of course if it is a merger with relative share issued I will think hard about holding either.

[Lbark]

I own dvn, too and some of these mergers as you say may not get us the value if they stand alone and just grow. Concerned some of our permian plays may get bought out and not give us the value Dan has on the stocks.

[dan_s]

Just remember that a stock-for-stock deal is not a "sale". That structure is just building a much larger company. Size matters in this business. Larger companies get higher valuation multiples.

For example, even though ESTE is going away, the shareholders are getting 1.446 shares of PR for each share of ESTE. That is a non-taxable transaction. Those new PR shareholders will now have equity in a company with MUCH MORE production and running room.
The Wall Street Gang is going to be IN LOVE with PR when they run the numbers for Q4.