How Will Exxon Mobil Fare After The Shell-BG Deal?
SeekingAlpha.com article published 13 April 2015
How Will Exxon Mobil Fare After The Shell-BG Deal?
Summary
- It seems as though Exxon Mobil could be the next integrated oil company in line to announce a merger.
- According to Credit Suisse, it is possible that Shell, post-merger, could surpass Exxon Mobil as the largest publicly traded producer three years from now.
- Exxon’s better position in terms of reserve replacement might be able to placate some investor concerns relating to future growth of the company.
- PetroChina was able to marginally leave behind Exxon’s $352.6 billion capitalization, as the former’s capitalization stood at $0.2 billion higher.
- I believe that deal or no deal, Exxon is one of the best picks for your portfolio for the long run, mainly because of its project portfolio and bright prospects.
Following the announcement of the Shell (RDS.A, RDS.B)-BG Group (OTCPK:BRGXF, OTCQX:BRGYY) merger, it seems as though Exxon Mobil (NYSE:XOM) could be the next integrated oil company in line to announce a merger. And why shouldn’t it? The company seems to be in a position of financial strength that most of its competitors lack. Moreover, in the current volatile environment, a merger seems to be a better option to expand the company’s production base as opposed to undertaking drilling activities to fuel growth in production, going forward.
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