What the Heck Was ExxonMobil Thinking With the LINN Energy Asset Swap?
Let's pretend you and I are two oilmen and I make you this offer: I'll give you 25,000 net acres for land in West Texas that produces 5,000 barrels of oil a day for your 500,000 net acres in Oklahoma producing 14,000 barrels of oil equivalent. Oh, and I get to keep 2,000 barrels per day of that production, too. You'd probably laugh in my face. But this is the deal that ExxonMobil just agreed to with LINN Energy . No, the executives at Exxon weren't drunk at the time; the deal actually makes sense for both companies.
In the case of Exxon and LINN, it's all about what fits each individual company. Tune into the video below to find out why this asset swap makes sense for Exxon and LINN and what it means for both companies down the road.
Does Exxon's rock solid dividend or LINN Energy's monstrous distribution make our list of top dividend stocks?
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.
The article What the Heck Was ExxonMobil Thinking With the LINN Energy Asset Swap? originally appeared on Fool.com.Tyler Crowe owns shares of Linn Energy, LLC. You can follow Tyler at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter,@TylerCroweFool. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.