FMP
May 29, 2024 12:26 PM - Davit Kirakosyan
ConocoPhillips (NYSE:COP) is reportedly close to finalizing an all-stock acquisition of Marathon Oil (NYSE:MRO), potentially valuing Marathon at over $15 billion, according to the Financial Times. Following this news, Marathon Oil's shares surged by more than 4% in pre-market today.
Although a deal seemed likely, there remain potential risks, such as the possibility of negotiations falling through or a competing bid emerging.
The U.S. oil and gas industry, which saw $250 billion in acquisitions in 2023, continues to consolidate despite heightened antitrust scrutiny. Recently, regulators approved Exxon Mobil's $60 billion acquisition of Pioneer Natural Resources, though they barred Pioneer's former CEO from joining Exxon's board due to allegations of collusion with OPEC to increase oil prices.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...