It does not take a rocket scientist to see the mega mergers on the horizon. With Shell moving their HQ to the UK in preparation for a takeover of BP only puts Chevron and Exxon in the tight spot to merge as well. In 24 months, the entire O&G industry will look completely different with 2 Mega Majors (Shell and Exxon).
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I never even heard about EO&G. Isit for real?
Here’s a in-depth comparison between CVX and EOG —- https://dashboards.trefis.com/data/companies/CVX/no-login-required/C2th2v0x/Chevron-vs-EOG-Resources-Which-Stock-Is-A-Better-Investment-
As for the remark made by the previous poster, if there is a merger between these company, you’ll be dreaming if CVX has all their Execs fired. Although I agree many need to be replaced, it just won’t happen. So, wake up to reality.
You want to create value? CVX should merge with EOG, fire all the CVX execs and middle managers, and let EOG run the company.
In the short term reserve replacement is not as important to the investor as the dividend payment. However, once the investment community figures out the company's future production is no longer sustainable due to lack of reserve replacement, then they will realize the company is in liquidation mode and price it accordingly.
Small companies don’t move the needle. Unocal, Atlas, Noble - none of our top 20 assets.
Large IOC's would consolidate the small companies first. Too much of a culture delta for XOM and CVX. neither side would be happy.
Reserves replacement is no longer a useful metric. Most of the reserves on the books at oil companies is either phantom reserves (as evidenced by de-booking) or never actually produced. All anyone cares about these days is earnings per barrel. A few valuable barrels is worth a lot more than many, many sub-marginal barrels.
Major oil companies have to grow through acquisitions because they can no longer replace reserves by exploration. The world is now too small for a large oil and gas corporation. National oil companies control all the excess reserves and they are not going to share their wealth with western corporations.
XOM-CVX merger would be quite easy to close. All the SEC cares about is downstream market share. XOM has about 10% of US refining capacity and CVX about 5%. The sale of a couple large refineries would satisfy the regulator easily. But this merger won't ever happen because neither company wants or needs it. Scale is no longer the thing in oil and gas. Earnings are king.
Forget what their boardrooms may think, the US SEC would never allow an Exxon-Chevron merger. Not, at least, until their combined reserves dip to about 25% of what they are now - in about 15 years. If Green wins out (looking more and more likely), you will start to see the number of non-NOCs slowing dwindling with time.
Lol. As someone close to our competitor analysis and upstream leadership team, even the leaders behind closed doors are saying with a chuckle: "Exxon? We're not even thinking about them". These people are decision makers so there's no realistic way an Exxon merger is happening.
Such a sh-t storm.
We are benchmarking the other independents for upstream and supermajors for the organization.
Lol. As someone close to our competitor analysis and upstream leadership team, even the leaders behind closed doors are saying with a chuckle: "Exxon? We're not even thinking about them". These people are decision makers so there's no realistic way an Exxon merger is happening.
Such a sh-t storm.
We are benchmarking the other independents for upstream and supermajors for the organization.
Shell needed to clean their structure up for a long time but no merger coming.
Mergers, May be Mega Majors, but won’t be the largest and lowest cost operator out there, in the end, that will be what matters.
Shell and BP will be fun to watch, but only one can win..
Chevron & ExxonMobil .. its a battle not a merge that will happen. ExxonMobil is already falling down, while Chevron is starting to fall.. it's all about who falls off first.
As someone who has worked with ExxonMobil in the past, I can tell you that ExxonMobil is taking the biggest L right now it has ever taken, I don't see these two merging but ExxonMobil dying due to what's ongoing right now.