RE:For those that are actually....The market absolutely hates this purchase by Exxon.
Exxon down around 5% now even with higher oil prices. It was so hated, it was dragging down the energy index, which also dragged down SU.
This is a good lesson for other oil companies thinking along those same lines.
Exxon, stick to your knitting or suffer the consequences.
mrmomo wrote: Smart enough to follow the real important news and stuff that's relevant to Suncor & the industry AND just in case you missed it. I haven't seen anything regarding this being posted here, so for those that want to follow the right people & the real important news items, i'll post this in the link below. I strongly suggest that if you're ardent supporter of the Canadian O&G sector and have a serious vested interest in it, to at the very least read this "interesting" development. As it will give you a heads up and a small peak into what's really going on behind the scenes in the energy sector.
As most of you fine folks know that when someone like Exxon sneezes or makes a move, the whole world stops and it will turn heads. Why? Because companies like Exxon are market leaders & bellwethers and give an indication where they stand and where they are headed in the future. So when major chess pieces like Exxon make a strategic chess move or some important pivotal decision in the indsutry, everyone will notice & take note. And this development is no different.
https://finance.yahoo.com/news/exxon-buy-denbury-4-9-120023990.html
As you will most definitely note (well those of you knowledgeable enough to take noitce!) after you finished reading this story, Exxon payed an eye popping $5B for Denbury or 100K+ per flowing boepd! Now before all of you fine folks run to get your calculators and start coming out with some insane valuations for Suncor based on this metric, i would urge caution AND to actually read WHY Exxon payed such a generous premium. The $5B and thh exorbitant premium payed wasn't actually for the oil but for something else completely. And to find out what that is, i strongly suggest you read the article. This is a real game changer and show with no doubt where the energy sector is headed.
As it pertains to the Canadian O&G sector, i know of only two Canadian operators who are actually involved & pursuing their operations based on a similar strategy as Denbury. The big difference here between those two Canadian ep's & Denbury being that the Canadian producers don't have the actual infrastruture that Exxon payed for. They just have the "implemented plans" and a slight shift in a portion of their operations to operate their business based on a carbon capture & decarbonization model. For those that want to know WHO those two Canadian O&G companies are, its Advantage & HammerHead. There are NO others who are doing this on a meaningful scale aside from those two.
So this is quite the development and a paradigm shift for the industry as a whole, especially when someone as imporant & crucial as Exxon gets 100% onboard. I fully expect for other market leaders like Chevron, Shell, BP & ConocoP to follow suit as well. The key thing to take away from this is the follow quote in the news story and the main point, why Exxon paid so much for Denbury's assets.
"Denbury’s key asset is 1,300 miles (2,092 kilometers) of pipelines dedicated to transporting CO2, critical infrastructure if the US is going to be successful in capturing carbon emissions from heavily-polluting facilities like refineries and chemical plants."
GLTA