Copper Jul 24 (HG=F)
- Yahoo Finance Video
Oil: Why M&A consolidation is emerging as a trend
Mega-merger moves are shaking up the oil sector. Hess (HES) shareholders have given the green light to the company's whopping $53 billion acquisition by Chevron (CVX). Meanwhile, ConocoPhillips (COP) is gearing up to acquire Marathon Oil (MRO) in a massive $17.1 billion all-stock transaction. Joining Market Domination to discuss the outlook for the oil sector amid this consolidation wave are Alpine Saxon Woods Founding Partner Sarah Hunt and CFRA Research Energy Equity Analyst Stewart Glickman. Hunt highlights the entire industry "is under a lot of pressure" as it pivots toward alternative energy sources. "I think this is all about consolidating into a smaller number of players, in a very mature industry, that is looked at as something that is not going to last forever," Hunt tells Yahoo Finance. Glickman, however, doesn't see the Conoco deal as "transformative," suggesting the company is on the defensive. With the Permian Basin posing headwinds for oil output, Glickman argues that by acquiring Marathon, Conoco is decreasing its Permian exposure — ultimately benefiting the company. He adds, "If you're going to grow at all, you're better off growing by acquisition than you are by throwing a lot of money into new cap-ex." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Angel Smith
- Yahoo Finance Video
Why ConocoPhillips' $17B Marathon Oil deal is 'a surprise'
ConocoPhillips (COP) is set to acquire Marathon Oil (MRO) in an all-stock deal valued at $17.1 billion. Tortoise Portfolio Manager Rob Thummel joins the Morning Brief to explain why this acquisition has come as "a surprise." Thummel commends Marathon Oil's management team, stating that they "have really done a great job of being capital disciplined." This disciplined approach has resulted in a high free cash flow yield, which Thummel believes will be one of the most significant benefits to ConocoPhillips through this acquisition. However, Thummel describes Marathon Oil's actual assets as "good, not great." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith
- Yahoo Finance Video
Dow tumbles, S&P 500 flashing a warning signal: Market takeaways
The Dow Jones Industrial Average (^DJI) shed 605 points on Thursday, largely due to a steep decline in Boeing (BA) shares. The company's CFO issued a warning about cash flow burn, sending the stock tumbling more than 7%. Yahoo Finance's Jared Blikre shares his market takeaways for May 23rd, including why the S&P 500 (^GSPC) may be showing "a yellow flashing signal." For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend. This post was written by Stephanie Mikulich.
