Takeover Stories

The point of this post is for those who are not familiar with the O&G space to have faith and not let those hands get shaky at times this stock is manipulated. Even though we are probably on the cusp of a net pay upgrade tomorrow, there will still potentially be ups and downs on the journey.

For those who work in the industry feel free to post takeover examples to give folks an example of where things can go.

To start - just a random step-back in history:

• In 2016 ExxonMobil bought InterOil for $2.5 Billion USD (actually potentially more than this due to a contingent resource payment clause)
• This was for InterOil's interest in the Elk-Antelope field(s) - InterOil only had ~35% interest in the field(s) at the time (after selling down a chunk to Total)
• In 2016 oil price (Brent USD) was ~60% of what it is today (ave closing price 2016 ~$45 vs $74 today)

Yes - ExxonMobil did have a significant presence in PNG, and this was accretive to their operations there. But this just demonstrates what can be paid for the smaller companies out there, in a more challenged hydrocarbon price environment.

Also, Exxon & Total have a strong presence next door to Zim in Mozambique.

Link below:

ExxonMobil to Acquire InterOil in Transaction Worth More Than $2.5 Billion | ExxonMobil