Oil companies Royal Dutch Shell PLC (NYSE ADR: RDS.A) and PetroChina Co. Ltd. (NYSE ADR: PTR) yesterday (Monday) made a joint offer for Australian energy producer Arrow Energy Ltd. in yet another demonstration of how China is turning Australia into its personal commodities broker.
The $3.4 billion (A$3.26 billion) deal would give shareholders A$4.45 per share - a 28% premium from Friday's share price - and a share in a new Arrow international-business entity for each current Arrow share.
Market reaction was favorable as Arrow's prices soared 47% Monday following the news, up to A$5.11 on the Australian stock exchange (ASX).
"It's an opportunistic bid and good for Arrow shareholders," Tim Schroeders, Pengana Capital portfolio manager, told CNBC.
How to Profit From the Geothermal Energy Push
Geothermal energy isn't a new concept in the United States.
It's actually been around for some time, with numerous geothermal power plants in California, Nevada and a few other western states. There are new plants on the drawing board, too. Unfortunately, the recession has stifled the construction progress on many of them.
But all that's about to change. Thanks to a few key technological developments - and a big cash infusion from the government - the stars are aligning to produce the perfect storm for this super-green energy source.
The New Oil Index is About to Create Even More Opportunity for Investors
Speculators in New York won't be calling the shots anymore. Not in oil, anyway.
The way we price it. The places we trade it. The companies that stand to profit most.
It's all about to change.
This was confirmed at a meeting I just attended in The City, London's financial district. I arrived from Moscow's Domodedovo Airport for an unusual Saturday morning gathering of bankers, traders and analysts called only days before.
The subject? A new oil-pricing index.
This is huge.
More oil-project funding is raised within a three-mile radius of The City's Liverpool Street train station than anywhere else on Earth. And now they're preparing to control the oil trade, as well.
This will create all kinds of new ways to make money in oil. Not just with fancy financial instruments designed for the "big boys," but with retail investments, too. So there's money in this for you.
For more on the future of crude-oil investing ...
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Exxon Deal For XTO Energy May Set Off Wave of Energy Mergers and Acquisitions
In a deal that may set off a wave of mergers and acquisition (M&A) activity in the energy sector, Exxon Mobil Corp. (NYSE: XOM), the biggest U.S. oil company, agreed to buy XTO Energy Inc. (NYSE: XTO), the largest U.S. natural gas producer, in an all-stock deal valued at $31 billion.
Exxon, which hasn't made a major acquisition since it bought Mobil ten years ago, is taking advantage of the low gas prices pressuring smaller, debt-laden gas exploration companies. The economic downturn and discoveries of vast pools of North American natural gas have kept a lid on gas prices, leaving companies in the industry strapped for operating cash.
The deal announced yesterday (Monday) values XTO at $51.69 a share, 25% higher than Friday's closing price. XTO holders will get 0.7098 share of Exxon for each share of XTO. The Texas-based oil giant will also assume $10 billion in debt.
From Russia With Love: China Looks North For Latest Resource Deal
A preliminary gas agreement between China and Russia is the latest indicator that the Red Dragon continues to diversify trade partners outside of the United States, and signals willingness between the neighboring countries to shelve any political differences for mutually beneficial deals. The deal between the Russia's Gazprom OAO (OTC ADR: OGZPY) and China National [...]
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With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world. Alcoa Earnings Rallies Stock; Retailers Post Strong September; Initial Jobless Claims Hit 9-Month Low; ECB and BOE Leave Rates Unchanged; PepsiCo Beats 3Q Estimates; CEO: China Auto Market to Cool; [...]
The World's Most Exciting Market – Until They Spoiled it
Over the past year, Brazil has established itself as one of the most exciting markets in the world for investors. Its Bovespa stock index is up 55% this year. And the discovery of the huge new Tupi oil field off its east coast has led some investors to refer to Brazil as the "New Saudi [...]
Natural Gas Prices Could Double as Energy Majors Scale Down Supplies
By Jason Simpkins Managing EditorMoney Morning After an unparalleled fall, natural gas prices could double by next year, as a growing number of idle rigs create a supply crunch. Natural gas prices have tumbled by about 30% this year, as a steep drop in industrial consumption has undermined demand. However, many of the traders and [...]