Small drillers may be takeover targets: report
NEW YORK (Reuters) - Small U.S. oil and gas exploration companies, whose shares have been beaten down lately, may be ripe takeover targets, Barron's reported in its September 1 edition.
Companies with access to booming U.S. shale fields, among the most promising sources of energy, especially have takeover potential, the business weekly said.
Shares of Plains Exploration (PXP.N), Quicksilver Resources (KWK.N), Range Resources (RRC.N) and St. Mary Land & Exploration (SM.N) are down by a third or more from their highs and do not fully reflect the value of their shale assets, Barron's said.
BP (BP.L) and XTO Energy (XTO.N) have recently made multibillion-dollar investments in shale assets, and integrated oil companies with little debt are eager to pick up bargains, Barron's said.
Expected new Securities and Exchange Commission rules could serve as a catalyst for deals by allowing companies to book unproven energy reserves, increasing the appeal of shale assets. The SEC rule changes are expected to take effect later this year, according to Barron's.
(Reporting by Nick Zieminski; editing by Gunna Dickson)
