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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (52312)	10/4/1999 1:26:00 AM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 95453

dave_s, MOB/XONmerger was announced last November- but it is only getting Government approval as of now. The EU approved last week- waiting on FTC. The BP/Amoco merger when approved by the FTC caused the two stocks to jump about 10%. The question is whether the same will happen with MOB/XON- I'm betting yes- earnings on the E&P front are going to be stout. Savings from the merger, if it follows other energy/OS mergers over the last 18 months (such as Halliburton/Dresser) will show up to double the savings as intially announced by the merging companies. XON/MOB predicted $2.8b in cost savings from the merger (Energy industry executives always "sandbag" on initial cost savings estimates so that they can soundly thrash the predicted number) . If the BPA merger is any guide however, then XON/MOB should be able to show $4b+ US dollars annually saved by the merger. With 1b XOM shares post-merger, then that should create an additional $4/share cash flow for XOM for years to come.... An extra $4b US dollars annually drills a lot of additional wells and builds lots of offshore platforms...And don't forget that XOM will have the greatest reserve base of any privately held company worldwide...