Siebert Williams Shank’s Post

Hibiscus Petroleum: A Diamond in the Rough Emerges The slumbering giant of the oil and gas industry, Hibiscus Petroleum Berhad, has just made a bold move. They've set their sights on a coveted Brunei gas asset, a strategic acquisition with a price tag of nearly USD$200 million. This ambitious plan has investors buzzing with questions. Will it be a game-changer for Hibiscus? The answer lies in the potential this deal unlocks. The increased production, particularly in the high-demand gas sector, is a clear win. Hibiscus is smartly diversifying its portfolio, positioning itself perfectly to capitalize on current market trends. This strategic maneuver hints at a company with a keen eye for opportunity. But why has this potential powerhouse remained under the radar for so long? Perhaps their focus on operational excellence, a hallmark of strong profitability and efficiency, hasn't gotten the spotlight it deserves. This latest acquisition, however, throws that into sharp relief. Hibiscus is not just a company running smoothly; it's a company strategically executing growth plans – a quality that excites any investor. The future holds even more promise. What's next for Hibiscus? Are there more acquisitions on the horizon? Is geographic expansion a possibility? A clear vision for continued growth is the key to unlocking their true potential in the eyes of the investment community. With this bold move, Hibiscus Petroleum is no longer a sleeping giant. It's a company on the rise, poised to become a major player in the E&P game. By capitalizing on the benefits of this acquisition and outlining a compelling future strategy, Hibiscus is finally ready to claim the recognition it deserves.

The planned merger of US natural gas producers Chesapeake Energy and Southwestern Energy carries echoes of the oil-focused merger frenzy currently roiling the Permian basin, but additional gas-focused consolidation may be less imminent than some expect. October was a big month for oil and gas M&A: ExxonMobil announced plans to acquire Pioneer Natural Resources for $59.5bn; Chevron pledged $53bn to take over Hess; and rumors of a potential Chesapeake-Southwestern deal emerged in major news outlets and the companies' earnings calls. But the overlapping timelines in this activity overlook fundamental differences in the crude and US gas markets, as well as the uniqueness of the $7.4bn Chesapeake-Southwestern deal that was confirmed with formal announcement this month. The merger promises to create the largest US gas producer by volume: https://lnkd.in/ear_d2CV

Recently, smaller and medium sized oil corporations have been at the forefront of innovating oil extraction techniques like fracking, playing a key role in the prosperous Permian Basin. The oil and gas sector in the United States experienced a surge in mergers and acquisitions during the last quarter of 2023, displaying a pattern of industry consolidation. Furthermore, renowned oil companies such as BP, Chevron, ExxonMobil, Shell, and Total Energies have announced substantial profits, capitalizing on the increased oil and gas prices. This surge in profitability can be attributed to factors like reduced refinery capacity and global events such as Russia's military intervention in Ukraine.

Oxy is the latest to execute a mega deal.  I have spoken with many people who are interested in buying Oxy stock. Most will highlight the point that Warren Buffett owns it (actually Berkshire Hathaway) however, did you know Berkshire Hathaway owns preferred shares and receives a dividend of 8% versus the ~1.5% offered to common shareholders like us? I prefer being an owner of Vermillion Energy (VET), who offer roughly the same earnings per share as Oxy at about 1/5th today's share price, plus a higher dividend yield for common shares. Oxy, Vermillion Energy Partners (Disclaimer: This is for entertainment only. I'm not a financial advisor. Don't buy or sell based on my opinion. You can lose all of your money. You are strongly encouraged to do your own research before making investment decisions) https://lnkd.in/gu6Y_-Vt

Big Oil News! 🚨 The FTC has given the green light to Exxon Mobil's $60 billion deal to acquire Pioneer Natural Resources, solidifying Exxon's dominance in the Permian Basin. 🛢️ However, Pioneer's former CEO, Scott Sheffield, has been barred from joining the new board over allegations of collusion with OPEC+ to influence oil prices. ⚖️ This merger adds Pioneer's 850,000+ acres to Exxon's existing 570,000 acres, creating one of the largest combined oil fields in West Texas and New Mexico. Exxon aims to streamline operations and reduce costs. Pioneer disputes the FTC's claims but will not block the closing of the deal. 💼 👉 Read the full details: https://lnkd.in/drBfYXMe #ExxonMobil #PioneerResources #OilAndGas #PermianBasin #EnergyIndustry #BigOil #MergerApproved #EnergyNews

Big Oil News! 🚨 The FTC has given the green light to Exxon Mobil's $60 billion deal to acquire Pioneer Natural Resources, solidifying Exxon's dominance in the Permian Basin. 🛢️ However, Pioneer's former CEO, Scott Sheffield, has been barred from joining the new board over allegations of collusion with OPEC+ to influence oil prices. ⚖️ This merger adds Pioneer's 850,000+ acres to Exxon's existing 570,000 acres, creating one of the largest combined oil fields in West Texas and New Mexico. Exxon aims to streamline operations and reduce costs. Pioneer disputes the FTC's claims but will not block the closing of the deal. 💼 👉 Read the full details: https://lnkd.in/drBfYXMe #ExxonMobil #PioneerResources #OilAndGas #PermianBasin #EnergyIndustry #BigOil #MergerApproved #EnergyNews

𝐖𝐢𝐥𝐝𝐜𝐚𝐭 𝐏𝐞𝐭𝐫𝐨𝐥𝐞𝐮𝐦 𝐩𝐚𝐬𝐬𝐞𝐬 𝐫𝐢𝐠𝐨𝐫𝐨𝐮𝐬 𝐝𝐮𝐞 𝐝𝐢𝐥𝐢𝐠𝐞𝐧𝐜𝐞 𝐭𝐨 𝐮𝐧𝐝𝐞𝐫𝐭𝐚𝐤𝐞 𝐦𝐞𝐠𝐚 𝐨𝐢𝐥 𝐝𝐞𝐚𝐥𝐬 London's Wildcat Petroleum Limited clears a comprehensive due diligence by South Sudan's Ministry of Petroleum, marking a significant step toward potential mega-deals in the country's vast oil sector. The evaluation covered crucial aspects like technical expertise and financial capacity for major multi-million/billion dollar oil production acquisitions. 🌐💼 To read full article https://rb.gy/if4in4  #WildcatPetroleum #OilSectorDeals #SouthSudan"

I am only mildly excited. The story talks about a $50 billion behemoth but I would have edited out the word behemoth. Here are the market valuations of the six oil companies that are in the top 100. Saudi Aramco. $1.98 trillion (a behemoth) Exxon Mobil $404B Chevron $279B Shell $206B PetroChina $201B Total $150B BP doesn't make the top 100 market caps but it is worth $103 billion, or twice what this new Diamondback-Endeavor combination will be at. When the Wall Street Journal gets a Sunday-before-the-markets-open merger scoop gift-wrapped by the investment bankers, it gets enthusiastic. The WSJ never met a merger deal it didn’t like - just make sure they get to break the news first. There have been a lot fewer of these in recent years because the M&A market has been dead. Bloomberg just followed the Journal and did not describe it as a behemoth. It called it a giant.

Big Oil News! 🚨 The FTC has given the green light to Exxon Mobil's $60 billion deal to acquire Pioneer Natural Resources, solidifying Exxon's dominance in the Permian Basin. 🛢️ However, Pioneer's former CEO, Scott Sheffield, has been barred from joining the new board over allegations of collusion with OPEC+ to influence oil prices. ⚖️ This merger adds Pioneer's 850,000+ acres to Exxon's existing 570,000 acres, creating one of the largest combined oil fields in West Texas and New Mexico. Exxon aims to streamline operations and reduce costs. Pioneer disputes the FTC's claims but will not block the closing of the deal. 💼 👉 Read the full details: https://lnkd.in/drBfYXMe #ExxonMobil #PioneerResources #OilAndGas #PermianBasin #EnergyIndustry #BigOil #MergerApproved #EnergyNews

Big Oil News! 🚨 The FTC has given the green light to Exxon Mobil's $60 billion deal to acquire Pioneer Natural Resources, solidifying Exxon's dominance in the Permian Basin. 🛢️ However, Pioneer's former CEO, Scott Sheffield, has been barred from joining the new board over allegations of collusion with OPEC+ to influence oil prices. ⚖️ This merger adds Pioneer's 850,000+ acres to Exxon's existing 570,000 acres, creating one of the largest combined oil fields in West Texas and New Mexico. Exxon aims to streamline operations and reduce costs. Pioneer disputes the FTC's claims but will not block the closing of the deal. 💼 👉 Read the full details: https://lnkd.in/drBfYXMe #ExxonMobil #PioneerResources #OilAndGas #PermianBasin #EnergyIndustry #BigOil #MergerApproved #EnergyNews