Just when I was going to write a wonderfully motivating hottake on team work.... some guy name Buffet shoved Anadarko back in the spotlight. 8% is really hard to make on large amounts of capital without taking a lot of risk- and through 2008 and the financial crisis, Buffet made a killing supporting banks with great preferred returns and warrants. So one must take notice when he commits 10 billion (with Warrant kickers) to Oxy’s bid for APC. Not...

What’s a Monday morning without a little M&A news from Sunday. Anadarko has decided to talk to Oxy..... and wow, does that look bad on the Board. So you get an offer from Oxy - well 3 actually- and then accept Chevron’s proposal and $1b break fee; and then Oxy writes a letter and now with egg covering your face, you think it’s time to engage. I stand by my view CVX doesn’t raise its bid and now, with...

Health is fleeting. And a gift. And one doesn’t really notice it until it’s gone. Let this be a reminder. Knees, backs, cancer and a whole host of other ailments materially and negatively impact quality of life. And one day, you can no longer do the things that you chose not to do yesterday. Life, age and ailments are inevitable so enjoy the gift of health when you...

I had wondered when the President was going to tweet on oil prices again. It had been a long stretch without calls to increase production and all streaks must come to an end. But, any way you slice it, oil is north of $60 and if you had been in a coma since October and just woke up, you’d find the market pretty much where you left it in all regards - but with 7 more months...

A trip down memory lane this weekend is reminding me how fast things change. When I left Calgary with Anadarko in 2006 - oil sands, natural gas and resource plays were just emerging as the way of the future. Calgary was booming, US companies were buying up everything they could get their hands on and one could freely job hop for a 15% raise anytime one pleased. Now, vacancy rates downtown are at all...

Chevron to buy Anadarko. Mostly equity, with a little cash because- well, they can.  Game.  On.   #hottakeoftheday SAN RAMON, Calif., Apr. 12 /BusinessWire/ -- Chevron Corporation (NYSE:CVX) announced today that it has entered into a definitive agreement with Anadarko Petroleum Corporation (NYSE:APC) to acquire all of the outstanding shares of Anadarko in a stock and cash transaction valued at $33 billion, or $65 per share. Based on Chevron's closing price on April 11, 2019 and under the terms of the agreement,...

Hello, Friends!!  It’s Masters week and it’s hard not to be excited about spring.  A new, kinder Tiger may challenge; Bryson DeChambeau will wear the grooves off his irons on the range and Rory will be hard to beat but my money’s on Augusta to win: a beautiful setting, amazing operation and that Merch-Village makes even the non golf fan excited for logo gear.   But come on, Jack, Tom and Gary all playing 9 holes together?   You can’t beat that.  It’s a tradition unlike any...

Growth is not a strategy.  It led to Starbucks near fall in 2008, Chipotle with the E. coli challenge in 2015 and energy companies now.   Economics matter.  PV matters.  Growth- at the cost of balance sheets - is a bad plan.   I should have been doing these hot takes in 2016.   #hottakeoftheday

The divergence between active drilling rigs and active completion crews continues to run a “shock and awe” campaign with my understanding of what’s going on.  In that - I don’t.  Last week, horizontal rigs in the US increased by 10 and at the same time, it is easy to hear whispers of completion crews being run close to a loss just to keep them working.   Half cycle economics - like those you have when a well is already drilled but not completed -  are substantially better and...

I am deeply torn.   My hometown Flames meet my home town Avalanche in the first round of the playoffs.   I guess I’ll know who I’m cheering for after the first goal is scored...  #hottakeoftheday