Royal Gold acquires Sandstorm and Horizon for 3.7 billion dollars

Royal Gold $RGLD (+0,71 %) announced exciting news on Monday: The company plans to purchase two significant acquisitions totaling approximately $3.7 billion. This includes the acquisition of Sandstorm Gold $SSL (+0,57 %) for 3.5 billion dollars in shares and Horizon Copper $VZ (+0,03 %) for 196 million dollars in cash. These strategic steps are expected to be completed in the fourth quarter of this year. CEO Bill Heissenbuttel emphasizes that these acquisitions support Royal Gold's goal of securing high-quality, long-life precious metal resources in mining-friendly regions. Although Royal Gold shares fell by more than 6% on Monday, the company has already gained more than a quarter of its value this year, which is a positive development in a challenging market environment.

ExxonMobil discovers gas deposits off Cyprus

In the USA, ExxonMobil $XOM (-1,69 %) in collaboration with Qatar Energy International, has discovered another promising natural gas deposit south of Cyprus. This discovery could significantly strengthen the region's status as a major energy exporter and help Europe to reduce its dependence on Russian energy sources. The deposit was discovered in the Pegasus-1 well, which is located approximately 190 kilometers southwest of Cyprus at a depth of 1,921 meters. No estimates of the amount of gas that may be present in this deposit have been released to date. The Cypriot authorities report that this is the sixth natural gas deposit discovered in Cyprus' economic zone in the last 14 years. In addition, the Eni-Total consortia also hold licenses in the region and could potentially work with ExxonMobil to develop these promising deposits in the future.

Sources:

https://finance.yahoo.com/news/royal-gold-stock-drops-firm-175534343.html

https://finance.yahoo.com/news/exxonmobil-partner-qatar-energy-natural-181923944.html

$SHEL (-1,16 %) is currently considering $BP. (-1 %) to take over the company. The potential transaction volume would amount to 80 billion US dollars, making it one of the largest M&A transactions in the history of Oil & Gas. BP is currently reviewing the offer, but negotiations have been slow so far. Shell & BP have not yet made any concrete statements. Shell officially described the reports as "further market speculation" and said it was focusing on its own performance and the interests of its shareholders.

𝖭𝖾𝗍 𝖣𝖾𝖻𝗍 𝗍𝗈 𝖤𝗊𝗎𝗂𝗍𝗒 𝖽𝖾𝗋 Ö𝗅𝗄𝗈𝗇𝗓𝖾𝗋𝗇𝖾 𝖡𝖯, 𝖲𝗁𝖾𝗅𝗅, 𝖳𝗈𝗍𝖺𝗅𝖤𝗇𝖾𝗋𝗀𝗂𝖾𝗌, 𝖤𝗑𝗑𝗈𝗇 𝗎𝗇𝖽 𝖢𝗁𝖾𝗏𝗋𝗈𝗇. 𝖡𝖯 𝗐𝗂𝖾𝗌 𝖤𝗇𝖽𝖾 2024 𝗆𝗂𝗍 𝖠𝖻𝗌𝗍𝖺𝗇𝖽 𝖽𝖾𝗇 𝗁ö𝖼𝗁𝗌𝗍𝖾𝗇 𝖶𝖾𝗋𝗍 𝖺𝗎𝖿, 𝖿𝖺𝗌𝗍 𝖽𝗈𝗉𝗉𝖾𝗅𝗍 𝗌𝗈 𝗁𝗈𝖼𝗁 𝗐𝗂𝖾 𝖲𝗁𝖾𝗅𝗅.

A takeover would create a European oil giant that could compete with $XOM (-1,69 %) and $CVX (-2,22 %) could take on. BP in particular has been under pressure from activist investors for some time, as its attempted foray into renewable energies has been less successful. A stronger focus on oil & gas is therefore strategically desirable.

Speculation on rising oil prices in the short term.

And why $CVX (-2,22 %) and not $XOM (-1,69 %) ? Chevron jumped back above the 200 day line today.

22 leverage.

$OXY (-2,53 %)
$OD7F
$OOEA
$XOM (-1,69 %)
$BRNT (-0,68 %)
$SLB (-2,51 %)
$COP (-1,64 %)
$WENS (-0,94 %)
$EXH1 (-0,74 %)
$SHEL (-1,16 %)
$PETR4 (-0,66 %)

The tensions will be resolved quickly. High oil prices harm American consumers. Trump wants to prevent that. He also wants to conclude an agreement with China. China imports a lot of oil from Iran, which will hurt them. The same applies to India, with which Trump also wants to conclude an agreement.

Trump is pro-Israel and wants to help Israel achieve its military goals. However, he will not give Israel much time to do so. It will either be over as quickly as the Six-Day War or after two weeks at the latest, enforced by Trump.

Price decline

OPEC+ countries

Brent futures curve

Oil supply

Kazakhstan

tariff war

Price target

Link: https://shorturl.at/asfT7

$SHEL (-1,16 %)
$TTE (-0,84 %)
$CVX (-2,22 %)
$XOM (-1,69 %)
$BP. (-1 %)
$OXY (-2,53 %)
$SLB (-2,51 %)
$2222
$ENI (-0,15 %)