CVX Buys APC

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TPL’s top two revenue drivers are tying up in a $33B deal.

Business Wire: Chevron Announces Agreement to Acquire Anadarko

Bloomberg Deal Summary + Occidental Wants APC Too

39% premium.

From TPL’s 10-K:

During 2018, we received $46.0 million, or approximately 15% of our total revenues (prior to deferrals), which included $22.9 million of oil and gas royalty revenue, $11.9 million of easements and sundry income (prior to deferrals), and $11.1 million of water sales and royalties, from Anadarko E&P Onshore, LLC and $49.4 million, or approximately 16% of our total revenues (prior to deferrals), which included $27.1 million of oil and gas royalty revenue and $18.9 million of revenue from sales of oil and gas royalty interests, from Chevron U.S.A., Inc.

Anadarko is water customer.  Strange that Chevron is not.

TPL did sell $19MM in royalties to CVX in 2018 so we know that communication line is open.

XOM > CXO or NBL or PXD or DVN or XEC is probably next.  This is a first big step in the majors cleaning up the Permian.

6 thoughts on “CVX Buys APC”

  2. Good news for TPL: confirms Chevron’s huge investment in the area is serious and long-term, and therefore they have the data that guarantees it will be profitable for them. Not unexpected. The Chevron projection charts for Permian/Delaware wells have been revised upwards a few times in recent years. Very attractive trajectory for TPL longs, esp. when most of the wells have the 8x bigger 1/16th royalty.

    PS Anyone know the reasoning behind TPL selling Chevron royalties last year? Another move that the Board felt no obligation to explain (unless I missed it). TIA.

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  3. Has it occurred to anyone that the best thing to do when you have an amazing recipe is NOT tinker with and change the ingredients? If you have a formula for success you stick with it and ride it out, instead what it looks like the shareholders are about to get is a corporate structure that pays its board members 8 figures and the stock flatlines. TPL is so unique and so well positioned and everybody wants to change that because they are convinced (for some unknown reason) that some folks at the top aren’t just trying to cash out all their chips to start a new endeavor (which is exactly what is trying to happen) everybody thinks management is just trying to protect themselves while not understanding the reason why, THEY HAVE THE INSIDER KNOWLEDGE of what is about to happen and they are strategically positioning themselves for it, THEY LIVE IN AND WORK RIGHT IN THE MIDDLE OF IT and everybody wants to listen to some east coast money suites who don’t have a pulse on what’s right around the corner. Does TPL management have a lot of shares? No. Does that mean they don’t have the companies best interest at heart? Absolutely not, it’s how they put food on the table OF COURSE they are doing what’s best for the company and they know what’s coming and what to do. TPL stock has climbed 400% in a year, look at major stocks of same valued companies, they bounce around a little but they basically stay the same. TPL is positioned for more growth believe it or not but not if you replace the people who got it to this point and made the deals they made via the relationships they have with suites and ties on the east coast. Just my 2 cents

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    • Is it possible that you are a paid troll from tpls proxy company. A human social add . Bigger picture – vote for the general – you folks are lame and just pissing the owners off. If you are real please put your real name in and a screen shot of your stock ownership and I put mine in. You sound like David Barry to me.

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      • Not sharing the same view as you and just giving my opinion doesn’t make me a troll or a proxy, it just makes me someone trying to engage in a dialog to discuss both sides, if opposing opinions are not allowed what’s the point of discussion? There is nothing wrong with having a different vision, I meant no ill will just trying to engage that’s all and give an alternative perspective

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    • No one is replacing anyone except for a deceased trustee.If there is a different plan, we should be able to assess it and vote on it.The salary increases and bonuses, sell of royalty acres, and other things can’t continue in my view.Once the controlling member died, these things happened.We need change .

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