Marathon Stockholders Give $17.1B ConocoPhillips Merger Thumbs Up
The companies said on Aug. 29 that ConocoPhillips'...
The companies said on Aug. 29 that ConocoPhillips' path to acquiring Marathon Oil Corp. has passed another milestone. Marathon shareholders voted to approve an all-stock transaction for approximately $17.1 billion.
The deal, which is valued at $22.5 billion, including $5.4 billion of net debt, was first announced in May. The Federal Trade Commission is still reviewing the merger after seeking a second request for information from the companies in July.
ConocoPhillips said the Marathon acquisition is adjacent to its own assets across the Lower 48, adding significant scale to its positions in the Eagle Ford, Bakken, and the Delaware Basin. (Source: ConocoPhillips)
ExxonMobil is seeking to divest a collection of conventional oil properties...
ExxonMobil is seeking to divest a collection of conventional oil properties in the Permian Basin of West Texas and Southeast New Mexico to prioritize shale production growth following its acquisition of Pioneer Natural Resources. According to sources, the assets could be worth around $1 billion.
EIA Report: Crude Inventories Drop By 0.8 Million Barrels
The EIA released its Weekly Petroleum Status Report. The report indicated...
The EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 0.8 million barrels from the previous week, compared to analyst consensus of -3 million barrels. At current levels, crude inventories are about 4% below the five-year average for this time of the year.
Total motor gasoline inventories declined by 2.2 million barrels, while analysts expected that they would drop by 1.5 million barrels. Distillate fuel inventories increased by 0.3 million barrels from the previous week.
U.S. crude oil imports declined by 92,000 bpd, averaging 6.6 million bpd. Over the past four weeks, crude oil imports averaged 6.4 million bpd.
Strategic Petroleum Reserve increased from 377.2 million barrels to 377.9 million barrels as U.S. continued to buy oil for reserves.
Domestic oil production decreased from 13.4 million bpd to 13.3 million bpd. From a big-picture point of view, it looks like domestic producers are not ready to push production towards 13.5 million bpd at current oil price levels.
ONEOK to Acquire Permian's EnLink, Medallion Midstream for $5.9 Billion
ONEOK has executed definitive...
ONEOK has executed definitive agreements to buy Global Infrastructure Partners’ (GIP) interests in EnLink Midstream and Medallion Midstream in separate transactions valued at $5.9 billion.
The deals establish ONEOK's fully integrated Permian Basin platform, extending the company’s footprint in the Midcontinent, North Texas, and Louisiana.
In the EnLink transaction, ONEOK will acquire GIP’s interests, consisting of GIP’s 43% share of EnLink’s outstanding common units, for total consideration of $3.3 billion. ONEOK will pay $14.90 per EnLink unit and 100% of the interest in the managing member for $300 million.
Berkshire Hathaway, Reached $1 Trillion in Market Cap
Warren Buffett's Berkshire...
Warren Buffett's Berkshire Hathaway conglomerate reached $1T in market capitalization yesterday. The firm joins just six other US companies currently valued at 13 figures: Apple, Microsoft, Nvidia, Alphabet, Meta, and Amazon.
The conglomerate and its longtime CEO—known among investors as the "Oracle of Omaha"—have averaged 20% annual returns since the native Nebraskan bought Berkshire Hathaway, then a struggling textile manufacturer, in 1965 (see history). The firm has since grown to have controlling shares in roughly 70 companies, with a cash pile of close to $280B (including $234B in US T-bills, making it the Treasury's largest lender). Its success comes as the conglomerate approach—whereby a parent company owns majority stakes in many diverse companies—has declined in recent decades. See a list of Berkshire's current assets here.
Buffett's approach involves long-term investments in undervalued companies, emphasizing high-quality managers in sound businesses. Listen to a high-level summary of his annual shareholder letters here.
