Big Oil's message to Permian strugglers: We won't bail you out
Big Oil probably won’t be buying up the Permian Basin’s struggling independent drillers any time soon.
Years of costly exploration and frantic buying sprees have gutted shareholder returns in the world’s largest shale basin. And management teams and their financial backers can’t count on shale-hungry, cash-rich supermajors to buy them out.
Exxon Mobil Corp., Royal Dutch Shell Plc, Chevron Corp. and ConocoPhillips are all on record saying they are wary of scooping up smaller rivals at a time when would-be sellers are demanding premium payouts and global crude prices are under pressure from ample supplies.
There is “not always alignment among buyers and sellers,” Exxon Chief Executive Officer Darren Woods said Wednesday. He suggested Permian drillers may have to be squeezed by weak prices for a bit longer before they dial down their expectations.
Read more: https://www.mysanantonio.com/business/energy/article/Big-Oil-s-message-to-Permian-strugglers-We-13910202.php
