Energy Prospectus

Hess

https://hess.gcs-web.com/node/33591/pdf

So called "brain" on CNBC questions Wirth on how this deal helps with climate change goals.

He was too much a gentleman to answer the way I would of answered.

For future takeover game , look for aging ceo that wants stocks options vested.

Basically no merger premium.

I am impressed with Wirth, btw, so is Warren Buffett!

how does the CVX and XOM deals bode for acquisitions of some of permian plays since so far no premiums on buyouts?

I just have a hard time ascertaining why any E&P DEO/BOD would want to sell for virtually no premium when the macro and micro economics are so bullish and this companies are in the second or third inning of incredible tailwinds printing money in FCF, retiring debt, dividends/buyback to shareholders. Who benefits when these companies get taken out? I can only surmise its the boys at the top of the companies food chain.

https://www.barrons.com/articles/chevron-hess-merger-oil-stock-e20f35e3?mod=hp_LEAD_2

Here is 1 take on why no premiums. Hess wants tax free treatment for the family. YOur point is what you and I are asking. Hope PR and others Dan mentioned hold out for bigger premiums.

Hess $171 a share takeover price seems low, analyst says

01:40 PM | (DVN) | By: SA Editor Joshua Fineman, SA News Editor

Chevron (NYSE:CVX) appears to be getting a bargain with its $171-a-share planned takeover of Hess (NYSE:HES), according to Sankey Research.
"It is a little bit of a light price," Paul Sankey of Sankey Research said in an interview with CNBC earlier, saying that he expected more than a 5% premium for Hess (HES). "That does raise questions for the rest of the sector, I think, who don't have the asset base of Hess."
"It was really a question of could Chevron get Hess," Sankey added. "Frankly, I didn't think they could. I'm delighted for Chevron, and I think for John Hess, it's a tremendous end to his career as a CEO."
"I didn't think they could get it for a 5% premium," Sankey said. "We were talking $200 a share. That's in range with the highest price targets on the street, so you are $20 below that, and that was the stretch target. The average street price target was around $170 where it went out, but of course that doesn't include a takeover premium."
Sankey believes the knee-jerk reaction to the combination is that it's a negative for Occidental Petroleum (NYSE:OXY) because there was hope that Chevron (CVX) would buy OXY. Occidental shares fell 3.4% on Monday.
Sankey said companies like Devon Energy (DVN) and Marathon Oil (MRO) to become larger.
"These guys really need to get bigger," Sankey explained "What we are seeing here is that medium-ranked companies are getting a poor multiple. "And as you get bigger, you get a better multiple, so the bigger the better right now, and all the highest multiples are Exxon (XOM) and Chevron. The next was Hess."
Sankey's comments come after Bloomberg on Wednesday reported that Devon (DVN) was considering major acquisition targets as it seeks to gain scale in U.S. shale, and has held preliminary talks in recent months about a combination with Marathon Oil (MRO).

Reuters on Tuesday also reported that Chesapeake Energy (CHK) had approached Southwestern Energy (SWN) about a potential about a potential acquisition.

https://www.wsj.com/finance/chevron-and-exxon-might-have-kicked-off-an-oil-land-grab-9b01ca32?mod=djemheard_t

another article mentioning MTDR, PR and ESTE and EOG

As I have posted here many times: A STOCK FOR STOCK MERGER IS NOT A SALE.

If you owned stock in ESTE, you will own more shares in a much larger company when the merger with PR closes.

Shareholders in HES will own shares of Chevron, a MUCH LARGER AND STRONGER COMPANY.

If one of your companies sells for cash, you have to pay income taxes on the gain and you are out of any upside.

Right. It is more like a marriage. Might be perfect or it might be more than you bargained for. I think John Hess wanted to retire and there were limited suitors.

Guyana's energy ministry said Thursday an appraisal well drilled by the Exxon Mobil-led (NYSE:XOM) consortium in the offshore Stabroek block resulted in a "significant discovery" of oil and gas.

The Lancetfish-2 well results would mark the fourth discovery this year offshore Guyana and bring the total number of discoveries to date since 2015 to 46, for more than 11B barrels of recoverable oil and gas.

The discovery in the consortium's Liza production license area has an estimated 20 meters of hydrocarbon-bearing reservoir, along with ~81 meters of additional hydrocarbon-bearing sandstone, the ministry said; the announcement did not include an estimate of the number of barrels of oil found.

The consortium, which also includes Hess (HES) and Cnooc (OTCPK:CEOHF), said in April it had found 28 meters of oil-bearing sandstone at the Lancetfish-1 well.