Petroleum giant Royal Dutch Shell PLC has agreed to buy BG Group PLC for £47 billion ($69.6 billion) in cash and shares. Read More
Who’s next?
In a research note this morning, Augustun Eden states, “This could mark the beginning of an M&A rave, much like the one we saw in the late 1990s where all manner of small oil-and-gas stocks were snapped up by larger ones — leading to the group of heavyweight oil majors we know so well today, in the likes of Exxon Mobil, BP, & Chevron.”
There’s no way to know for sure who’s next, without having access to insider information, but we can screen for stocks within the industry that might see some pin action off this deal.
I ran a quick screen using The PPT that searches for stocks within the Major Integrated Oils. I’ve asked the screen to leave out companies with a high debt/equity ratio, and also added a free cash flow column to easily sort through companies that can withstand another rout in oil prices. The screen is sorted by rank, this rank is the actual ranking within the whole database of stocks, not just the industry. Enjoy.
Results for Independent Oils & Gas:
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Results For Drilling & Exploration:
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Results for Oil Service:
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Which one is your favorite? I want comments dammit.
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RC I’ve been a fan of MTDR. Strong fundamentals, very low debt, and positive cash flow. Also, they’ve been hedged, and most importantly, get the majority of their oil from Eagle Ford, cheapest shale area in US.
Thanks for the comment. Monster move the last few weeks on good volume, a buy the dip candidate for sure.
WFT
RC – the multiple bottoms (xtra homo) on that RIGP really catch my eye….
Indeud. Just needs to hop over the 20 day MA
RC i see PDCE not on the list.Never really crashed like many others.Chart looks interesting.
Over $55 it goes.
Top pick for my clients in PDCE
I will ditch OAS and watch PDCE. Thanks guys.
Good info @thegame
AREX is my choice