From Investor’s Business Daily
Exxon Mobil (stock ticker: XOM), Chevron (stock ticker: CVX), ConocoPhillips (stock ticker: COP) and Royal Dutch Shell (stock ticker: RDSA) are reportedly interested in buying Endeavor Energy Resources, a privately held Permian Basin acreage holder.
Chevron and Exxon are reportedly submitting first round bids for privately held Endeavor, sources told Bloomberg. Shell is considering participating and Conoco is also reportedly interested.
Endeavor could be valued at $15 billion, including debt, for its 329,000 net acres in the prolific Permian Basin. Only 2% of its vast holdings have been developed, according to the report.
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Analysts described Endeavor’s land as being in the core of the Permian Basin and largely continuous.
But Endeavor is also looking at an initial public offering in 2019, so the founding family can remain in control of the company.
Exxon shares fell 0.7% to 79.31 on the stock market today. Chevron was off 0.2% to 117.11. Conoco was down 1.1% to 64.43. Shell fell 0.7% to 61.73.
Chance to snap up large acreage position in the Permian Basin lures the majors
Oil majors have been expanding their operations in the Permian Basin in recent years.
Exxon doubled its holdings in the Permian Basin, which accounts for one-third of U.S. production, with a $5.6 billion deal in 2017. Chevron is one of the largest producers in the Permian Basin after pouring in billions of dollars to secure over 2 million net acres. Smaller shale focused E&Ps haven’t been quite on the acquisition front. In August, Diamondback Energy (FANG) bought Energen and BP’s (BP) deal with BHP Billiton (BHP) is pending.
