This October there have been two Massive (all shares) acquisitions by US oil companies. Exxon bought Pioneer Natural for 59.5bln $, and Chevron acquired Hess for 53.3bln$.
These where all shares deal that have not been well received by the market. However, since the price is now lower they arguably destroyed value for exisiting shareholders but made those companies more attractive, since shale is getting cheaper and is already much more convinient than off shore drilling.
I think this are right now a positive for entering shareholders, since they added A LOT of accessible oil reserves for these companies, and part of the cost of the deal has been erased by stock market movements. However, I don't know enough about the sector to identify the market leader (so I am not invested in any oil company except for a little exposure through ETFS) and I also cannot predict weather shale extraction costs are likely to decrease further in the future.
What are your thoughts?
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