According to a Bloomberg article online, Devon is a takeover or merger target for 2016. The article also mentions Oxy and Encana as candidates. Curious as to your thoughts? Possibility or crap?
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Encana!? HAHAHA!!! No way. Oxy is barely keeping their head above water. Who wrote the article? Some 21 yr old grad? Quite laughable. Maybe Chevron. To my memory they are under represented in the US gas market compared to the other majors. Devon is not an attractive takeover target though. They have about a year left of locations in Eagle Ford, and some ok Permian assets, a huge liability in Oklahoma, and a bunch of marginal production in other places. They have a lot of overhead, unlike one trick pony Continental, who has one major play with plenty of future up side, drilling locations, and very little overhead. Simple, easy, Continental takeover target.
I wouldn't worry about it. In past years there were countless rumors of takeovers or mergers. Even when oil prices were low- I saw vast oil companies acquiring others but it doesn't seem to be happening this time around. I suspect it is because most companies are debt ridden, and lower valued assets definitely affect how much capital you can raise for a merger or acquisition.
I am still shocked George Mitchell's heirs haven't dumped out loser company. Mid range with mid range assets at best. Might be hard to find a buyer though. Good think we got that Kerr McGee top brass in charge now as they were such a successful company in the later years