Oil Market Update (January 8, 2013)
Oil – A brief overview of oil price developments, supply and demand and significant market movers.
Articles Tagged "NYSE:PXP"
Freeport-McMoRan Takes a Dive as Investors Question Motives for Big Acquisitions
Copper – Freeport-McMoRan’s plan to buy Plains Exploration & Production, as well as its former sister firm, McMoRan Exploration, wasn’t likely to get shareholder praise as it adds $20 billion to the company's debt and is comprised of hard-to-swallow premiums. Added to these factors is the web of connections between the firms: history, ownership, board members and executive gains related to the deal. If the company had struck a sweeter deal, investors might have looked the other way at corporate impropriety. Instead, they may be irate enough to try stopping it.
Plains Exploration to Buy BP Wells for $5.5 Billion
Oil – Reuters reported that Plains Exploration & Production Co. (NYSE:PXP) plans to borrow $7 billion so that it can purchase BP plc's (LSE:BP) stake in some deepwater wells in the Gulf of Mexico. Since the announcement, PXP shares have dropped over 10 percent due to investors worrying about how the company will deal with the debt load it has taken on.
