News outlets are speculating that Chevron or Exxon could snap up BP for pocket change given our shockingly low market cap. Thoughts?
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8fub Say what?
Yes… and let me guess.. the moon landing was fake, the US invented the balloons. The CIA took down the Twin Towers. The US invented the invasion of Ukraine. The US invented climate change. The US...
The renewables jettison is part of the balance sheet cleanup for a fire sale this fall.
And it’s chevron. They plan on using this challenge Exxon head to head. When this happens it’s going to start the next round of super mergers!!!
Heard this is happening! Execs own too many shares at 6 and need to get the bid up. All the overhead positions in bp will be let go and only operations will remain.
I’d keep the world class bpx asset and sell the rest
BP has the worst board starting with an acknowledged inefficient chairman. His McKinsey experiment has failed him 2x now with BP grossly underperforming their peers. They are now a recovering alcoholic that has fallen off the wagon and uninvestable. They redefine the term flip-flop. .
Makes sense, right?
Do what OXY did to anadarko. Keep the core assets and sell half the company. Layoff 1/2 the company.
Good results!!! Now officially the 8th largest publicly traded oil company in the world.
Unfortunately the guy is unsackable, a weak board put all their eggs in one basket there and on an equally substandard ELT that’s mainly there to tick the boxes. It was a huge gamble, and you don’t take huge gambles with these types of companies. Poor decision making
These rumors come out every other year. Been with BP 20 yrs and I remember very clrarly it was Shell when i joined. Maybe if BL gets sacked after this miserable green agenda fiasco we gain some momentum and quell these rumors for another few years.
The European downstream would likely be sold off. Our many marginal upstream assets, which we should be peddling now, would also get the boot.
If this happened I’m not even sure any our staff would be retained!? Maybe Baku? The rest would not be required. That’s more than $3bn in synergy. None of the current execs would get a sniff
As a Brit I'd be happy if we were bought over so we can eliminate this management team. Shocking basic strategy of cutting staff packages, making people redundant and then just using McKinsey to say that Agile will save the day. Sooner we are rid of them the better
It would have to be at the right place. It feels like it would be an intriguing get out of jail card for Looney given how his current agenda is panning out
There was an argument in the past that the uk government could not let bp be sold. That’s likely not the case anymore due to its reduced global influence and the general green agenda.
Lund has history in cashing all the chips in.
It is so sad to what this corporation shrivel and die the last couple decades. In 2005, we were a $220B company producing 4 million boepd, towering over Chevron at $127B and 2.5 mmboepd that year.
Today, they are worth $325B, more than triple our $106B. They produce 50% more at 3 mmboepd to our 2.2.
There is no way we can survive another low price scenario. Our horrible Russian assets may have been the only obstacle to others buying us. Strewth.
$10?
I'm not sure our share price reflects how weak we really are. I think they will wait for an oil price collapse in the next couple years and then scoop us up. The green fiasco has caught a lot of attention as we have tripped badly, have low earnings, and will be falling out of favor in Europe.
I don’t think the UK government would allow this to go through?
The limeys must be quaking in their boots at the thought of the joint being run over by A&M grads.
Would love to see some Exxon management in the house :-)
It’d be good for all involved. The change of control clauses would give the execs a chance to make their cash and get out. The crown jewel assets in GOM and AZ would be easily integrated to either CVX or XOM. The rest would be high graded and sold off.
With BL now pivoting away from the ludicrous ‘save the planet’ strategy which is 20 years too early and the diminished confidence after the energy outlook report (people now wondering what SD was smoking). You’d have to put a good bet on it
The downstream market share implications would be negligible and assets could be sold off if American regulators had concerns. Has a regulator ever stopped a major merger on these grounds?
Given the regulatory scrutiny on M&A and the attention Chev and EXM already get, seriously doubt that is even realistic.