Tudor Pickering Opines on "Who Next" and "Who Not" After BHP/HK Deal

Tudor Pickering commented on "who's next" after BHP Billiton (NYSE: BHP) announced a deal Thursday evening to acquire Petrohawk Energy Corp. (NYSE: HK) for $12.1 billion in cash, or $38.75 per share. The deal came at at 65% premium to Thursday's close of $23.49.

The firm's best takeout candidates:

• Brigham Exploration Co. (Nasdaq: BEXP)
  
• Oasis Petroleum Inc. (NYSE: OAS)
  
• Cabot Oil & Gas Corporation (NYSE: COG)
  
• Carrizo Oil & Gas Inc. (Nasdaq: CRZO)
  
• Range Resources Corporation (NYSE: RRC)
  
• Southwestern Energy Co. (NYSE: SWN)
  
• Ultra Petroleum Corp. (NYSE: UPL)

Tudor note however that some are already pretty close to their NAV. Those that offer 25+% upside to NAV are: BEXP, OAS, SWN, UPL. COG has 20% upside. CRZO and RRC are lower at 8% and 2% upside, respectively.

Commenting on who isn't a takeover target because of size, the firm said Chesapeake Energy (NYSE: CHK) and EOG Resources, Inc. (NYSE: EOG) have assets that fit the bill but they may be too large. Anadarko Petroleum (NYSE: APC) and Bunge Limited (NYSE: BG) are on-agai/off-again rumored BHP target, which now look off-again. Quicksilver Resources Inc. (NYSE: KWK) and EXCO Resources Inc. (NYSE: XCO) just ended failed take-private transactions. Continental Resources Inc. (NYSE: CLR), SM Energy Company (NYSE: SM) and Cimarex Energy Co. (NYSE: XEC) don't seem to want to or may not be incentivized to sell.

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