Stock market rout doubles pain for energy firms that took shares for deals

- Energy investor EnCap Investments pulled off a rarity in the U.S. shale business earlier this month, the $2.5 billion sale of oil producer Felix Energy to rival WPX Energy Inc, striking a deal at a time when energy mergers have all but dried up.

EnCap’s big payday, 153 million WPX shares valued at $1.6 billion plus $900 million in cash, proved short-lived as convulsing oil and stock markets knocked nearly two-thirds off the value of WPX shares within days of the closing. Many already are reeling from oil prices that last week fell the most in a decade, to about $31 a barrel, and falling demand from an global economy weakened by the coronavirus. The magnitude of the price drop will hurt the companies’ ability to borrow against their newly-less-valuable reserves of oil and gas.

Portugal Últimas Notícias, Portugal Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

Stock market outlook: Save cash for stock shopping list - Business InsiderMaking a detailed 'shopping list of stocks' will help investors avoid panic selling during the coronavirus outbreak, strategist Rich Steinberg said. We used all of that cash for toilet paper. I guess we weren't brave enough ghosts this time. Maybe next crisis!
Fonte: BusinessInsider - 🏆 729. / 51 Consulte Mais informação »

This is a wounded, fragile stock market raging for a proper policy responseCNBC's Michael Santoli surveys the market wreckage. Maybe people need to understand that tax cuts and monetary stimulus is not the answer right now. Seeing the virus cases decline and people going back to their normal lives will be what causes the market to find a bottom. Certainly not politicians. This market has been shot and its in the emergency room next to someone who has covid-19 Such as?
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »