Warren Buffett Could Make His ‘Elephant-Sized’ Deal In The Energy Sector
Warren Buffett wants an “elephant-sized” deal this year for Berkshire Hathaway (BRKB) and he could find it in the energy sector following Friday’s big Chevron (CVX) shale acquisition.
Chevron announced Friday that it would buy top shale producer Anadarko Petroleum (APC) for $33 billion. The move could kick off a round of mergers and acquisitions in the energy space, said Phil Flynn, senior market analyst at Price Futures Group.
In his annual shareholder letter in February, Warren Buffett wrote that he hopes for “an elephant-sized acquisition” in 2019.
“He likes to buy quality on the cheap,” Flynn said of Warren Buffett. “I think a lot of the (shale) companies, because of the sell-off in oil late last year and now that oil prices have turned around, are a very good value.”
Cheap Energy Deals For Warren Buffett
Devon Energy (DVN), Continental Resources (CLR), Parsley Energy (PE) and Matador Resources (MTDR) are ripe takeover targets that Warren Buffett and Berkshire Hathaway could be interested in, Flynn said.
Berkshire Hathaway shares rose 1.9% to 2010.56 on the stock market today. Chevron stock fell 4.9% to 119.76. Anadarko stock jumped 32% to 61.78.