ConocoPhillips' M&A hopes have gone down with oil prices. After reporting a fourth-quarter
net loss of $31.8 billion (mainly reflecting goodwill impairment on some assets) the American oil major is playing it safe. "There is nothing in the $12.5 billion [2009 capital spending] program for acquisitions.
We will live within our means," CEO Jim Mulva told the Calgary Herald. Instead, the cash will be used to shore up existing operations. Mulva also said some cutbacks were in order, such as with its oil sands venture with EnCana Corp.
The Houston firm's biggest "impairment" was $25.4 billion, which the AP
noted was from the drop in value of certain exploration and production assets, including those from ConocoPhillips' $35.6 billion purchase of Burlington Resources in 2006. For all of 2008, ConocoPhillips reported a net loss of $17 billion.
Conoco's French counterpart Total SA isn't so skittish on deals. In the past two weeks, it got a boost in oil sands by
acquiring Calgary-based UTS Energy Corp. for about C$617 million ($510 million) in cash and took a
50% stake in American Shale Oil LLC.
Of course, these days, the bad news outweighs the good. On Thursday, European oil giant Royal Dutch Shell plc reported a fourth-quarter
loss of $2.8 billion. On Friday, U.S. Nos. 1 and 2, Exxon Mobil Corp. and Chevron Corp., will report earnings, while London's BP plc will fess up on Tuesday. -
Baz HiralalGo to the story
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