this will make concho the biggest oil and gas company in the permian.d you out this early we had to get your insights on this we were waiting for a deal for a while. concho going after rsp is this a one-off or is this the start of an m&a trend in oil and gas? >> hi, brian i think this starts opening day for m&a in the ep space, especially in the permian. two things stand out one, you have two opportunities across the board there would have been an m&a banker's dream deal. concho traded at a premium multiple, like 1.4 times ebita in '18 versus rsp of 17.7 times. rsp was growing faster and this better assets. it was not hard to pitch this combination shouldhappen make your company better due to this this sets up nice for this pitch in the m&a space and even more importantly is just scale. you talk about $2 billion worth of synergies, that will push unit costs lower in the ep space it's all about being the low-cost provider. the low-cost provider wins day after day. that's the company that will ultimately be the most successful stock >> you have to get big

the key mergers being discussed currently our us oil and gas producer concho which is buying r s p permian for nine point five billion dollars and the largest exchange in the world the chicago mercantile exchange group or c m a group is buying u.k.'s any ex group for what is reported to be three point eight billion dollars plus japan's leading drugmaker to keda just confirmed it is considering a takeover bid.

the key mergers being discussed currently our us oil and gas producer concho which is buying r s p permian for nine point five billion dollars and the largest exchange in the world the chicago mercantile exchange group or c m a group is buying u.k.'s any x. group for what is reported to be three point eight billion dollars plus japan's leading drugmaker to keda just confirmed it is considering a takeover bid of rival irish rival shire and while the data shows those large increases in mergers and acquisitions one large potential murder merger has actually been put on hold ascension the largest not for profit hospital system in knighted states and providence st joseph health also a large nonprofit hospital owner has said that they will put merger talks on hold for now the birger would have created the largest hospital owner in the nation profit or not for profit while not noted as a reason for idling any merger talks some say that and i trust issues as have been looming and as a concern and we've reported here on the program front and center in some larger merger talks is and i trust issues

i truly have three people on the generational extreme the generation were supposed to produce the permian ran over three years for just one power station. for three people working. can you imagine what the margins mean knowing what every salary is for people it's insane she says trojans relationship with eskom was so strong that she was able to pin a draft letter to mckinsey on the instruction of a senior is com executive. the supplier development partner is trillion trillion and a woman came to work explicitly clive had told me the relationship to. petroleum and this is why some women also take charge of very. difficult they could leaving the campaign because the relationships exist with us clive and celine were her bosses and salema saleman. ties to the captors are so well known he's often referred to as the fourth book the brother. the kinsey say the trillion concealed it's kept a connection by not revealing that celine was its majority shareholder when it found out it terminated its relationship with trillian that was in march twenty sixth dean but says goodson mckinsey's and systems

permian specifically, there are a third more rigs than a year ago. know the industry will be trying to reduce the number of wells sitting waiting, so we told them we should see substantial growth at of the united states this year, some people calling for 1.1 to 1.3 million barrels per day increasing over the year. does not sound wrong to me when you consider last year's growth was more significant. tack on 33% more rigs in the permian basin, and you can do the math, we will have a lot of growth. julia: that was alix steel with tim dove, pioneer natural resources president. bond saleking off a to fund their acquisition of aetna. more on that deal next. from new york, this is bloomberg. ♪ scarlet: cvs kicking off the third-biggest corporate bond sale on record to fund its $67.5 billion acquisition of aetna. the move tests the appetite of the corporate bond market, off to its worst annual start in decades. joining us is molly smith to discuss. what is interesting is cvs has looked into selling $45 billion of debt, and instead will only sell $40 billion.

the key mergers being discussed currently our us oil and gas producer concho which is buying r s p permian for nine point five billion dollars and the largest exchange in the world the chicago mercantile exchange group or c m a group is buying u.k.'s any x. group for what is reported to be three point eight billion dollars plus japan's leading drugmaker to keda just confirmed it is considering a takeover bid of rival irish rival shire and while the data shows those large increases in mergers and acquisitions one large potential murder merger has actually been put on hold ascension the largest not for profit hospital system in knighted states and providence st joseph health also a large nonprofit hospital owner has said that they will put merger talks on hold for now the merger would have created the largest hospital owner in the nation profit or not for profit while not noted as a reason for idling any merger talks some say that and i trust issues as have been looming and as a concern and we've reported here on the program front and center in some larger merger.

sam: in oklahoma and the permian and the balkans.ling up hospitals, particular nonprofits and turning them into profit hospitals. very interesting field, not one in which there a lot of competition, and ultimately that's attractive. david: do you take a lot of cost out of those hospitals? sam: you can't imagine how poorly run nonprofit hospitals are. alix: interesting. sam: they are charity oriented. for a long time, we have just ignored that. life has changed. so there's a lot of this conversion from nonprofit hospitals to actually profit oriented focused. alix: great to see you. good to spend the hour with you. sam zell, thank you very much. crown prince of saudi arabia's charm offensive. that's next. if you have bloomberg terminal, check out tv to watch us online and clicked on our charts and graphics. just check out tv on your terminal. this is bloomberg. ♪ alix: what am watching as the crown prince of saudi arabia meeting with president trump today and it will all be about potential deals. take a look at this chart. th

, largest 27 rigs and the largest drilling program in the permian basin with this acquisition of ours earlier action in terms of the banks kind of catch a bit, it seems like the bank were struggling and goldman sachs opening up 1%. market is kind of again, looking at differentiate between areas that looked like they're hitting a little more head wings and others that seems okay for now anyway >> there is been discussions earlier in the week and last week that dc would be the issue to which the market be holden until we got to first quarter numbers and tech just emerged out of nowhere >> exactly totally dead i think that's one of the things that happens in these kinds of rolling corrections that we had. late january was, as long as the 10-yr does not get above three, the market is going to be fine we can scapegoat that for a while and it was the tariffs talk all of them are relevant and matter on a day-to-day basis, it is about helping to explain why there is not an easy rotation. we have to get to an extreme negative sentiment at over sold to mirror in upstream upside who knows if you

oil companies in the permian basin? >> u.s. producers and investors.hey want as much market intelligence as they can get i think they're afraid to be caught by surprise they want to know what the production will be >> one question about tillerson, sort of walk us through what the policy changes could be with a new secretary of state >> look for the month of may, on may 12th donald trump has to make a decision on whether or not we remain in the iran deal if he doesn't extend sanctions or waivers, we're out of the deal pompeo will likely advocate for the u.s. exit. >> may 12th is the date. a little houston reunion here. >> yes >> 5:05 in the morning >> only for you. >> talk to us in three months. thank you. >>> it could be a good day for stocks equity futures indicating a triple digit jump at the hope but keep in mind we have a cornucopia of economic data rolling out later this morning at 8:30 a.m. eastern, philly fed, jobless claims. the ten-year yield is at 2.81%, but the two-year is the number to watch those yields yesterday hitting the highest mark i

today we unveiled news our permian position, which is one of the largest grew by 10% we increased ourposition to 11 billion barrels we talked about leading well performance against some of the best competitors in the basin. we're using new technology, data science and understanding at a first principles level why the shale works to improve performances >> what about the price of crude oil? what is the break-even for chevron? where it's $62 right now, is that -- how does that free up capital for you guys >> last year we were able to break even and pay our dividend at $54 brent and in this year we've said without any asset sales we'll be at $50 or better our break-evens continue to come down at a price we're at today, we indicated today we expect to generate $14 billion in free cash flow this year. our dividend is about $8 billion, so that would be $6 billion excess. >> and the share buybacks, those could be something, are something that you guys are able to do this year and next year, is that right? >> we did talk about the intent to be in a position to resume our buyback program. in t

i like things like the permian. density, the thickness of the package is there. you need less land. >> but you do need it continuous. do you want to buy that land? expandpreference is to where we are. where we already have critical mass of activity. we want to look to expand their first. in canada it would be a place we were -- would look to expand. liquids.y on we already have dry gas in our portfolio. ourh is going to enable canada project off of western canada which is still in the planning stages. our actual growth focus would be on liquids, through swaps or through advantage priced type acquisitions. >> would that be bhp? assetsnature of the bhp is something that would be attractive for us but there are lots of those opportunities in the canada portfolio to expand from where we are. >> your growth profile, what is the one disruptor for that? what would make us not get to that goal is the same thing that is going to limit industry, that is managing the license to operate. we've got to continue as an industry to manage the license to operate. societal acceptan

in the permian drilled types used in the most technically demanding oilfield applications in the world. they send from corpus christi, texas to boston, which creates a green tubes with technical specifications that aren't available from u.s. suppliers. those steel tubes come back and those 500 workers to read them and approve them. they sell them to american energy companies. 40% compete and sell around the world. they have fierce global competition. so, grant prime co. was planning to increase their workforce from 500 to 1000 employees as the energy market improves. but now, those plans are on hold due to these tariffs in the exclusion process. worse, because they could under 25% tariffs lose half of their sales and potentially face shrinking about workforce. i did the town hall recently and that manufacturing plant. these are great workers to do an amazing job in this plant would await tell them -- just a second. do i tell them china is cheating so you need to lose your job? that just doesn't seem right. i know you care about these manufacturing jobs. i know president trump is just p

why wouldn't companies merge, get into the permian pay off?vailability is a deterrent. as we said, there's a buyer strike going on. if you bought energy equities, and particularly upstream, you are generally underwater. no fresh been almost upstream equity issued over the course of the past year. i think the big question is will that change. if you are a company that means more equity to execute m&a you are probably sidelined,. if you are a company where you are happy with your valuation and happy to use your stock, it is more likely you can be active. alix: what about the debt market? noble burned a lot of debt investors, it blew up over in asia. do you feeling that part of the market is open? >> that market is more open to the higher-quality names, but , the kind ofdown covenant free deals that we saw in the height of the shale boom in 2013 and 2014, we are a long way from that. but investors sometime have short memories, and it wouldn't surprise us to see the markets come back. coming to light is very available across the broader economy. a

you mentioned the permian market, specifically that has been by far the largest growing activity centercountry. >> the banks won't lend, will they if i'm a 20-man firm, the american dream, i can't get the money right now. despite the fact that the industry is better i don't understand why there's a disconnect >> i think going into the downturn, giving how prolongs and how severe it was for many lenders and investors across the industry, there's a lot of groups otcapital that aren't ready to come back to the industry that creates opportunities as a private equity investor because a lot of these family-owned businesses need capital. >> i think that's a great opportunity for charlie and his partners because some of the traditional sources of capital are not available. and for companies that have differentiated positions, that's probably exactly the type of portfolio that charlie and his partners are looking at. >> but the world is awash in capital. why isn't it going more to oil and gas? that's what i don't understand the balance sheets appear to be healed, or maybe they're not >> i think

business we're joined by an energy focused private equity group with an in vestment cells in the the permian stack. wildly optimistic projections, 12 million barrels a day in the united states and we're at a 47 year high and 10.2 million barrels aday is the money there to get us to to $12 million. >> i don't think so. when you look at the biggest concern out of fourth quarter earnings, they were focused on will companies use the increased cash flow from higher oil to grow rig count or to dividend back to shareholders or buyback stock and the companies were disciplined in fourth quarter earnings they increased dividends and announced buyback of about $7 billion or 50% of the market cap. that is what investors want. >> but that is bad for the industry good for shareholders but you are not growing and investing in the business >> the mandate for mutual funds and public market investors is for growth and profitability for growth sake. >> maybe you can't blame them. return on equity is lousy compared to the s&p 500. >> so we've had very bad returns over ten years as a sector so it is something li

oil producers, for the permian basin, good news but venezuela is a big part of the story.s a humanitarian disaster, as you know, but also an economic disaster. >> venezuelan government much more interested in producing drugs and narcotics than -- >> and cryptocurrencies. >> thank you it's going to be interesting and exciting >> you can catch that interview tomorrow on "poir lunwer lunch" 1:00 brian will be on "closing bell" tomorrow with michael wirth and bob dudley write all of that down that's a deep tease. >> new ceo >> let's bring in bill smeed and ian weiner are you going to buy shares of saudi aramco when it ipos? >> i'm not going to buy shares mostly because i have no idea exactly what the numbers are, exactly what things look like. i know it's a country that just jailed a bunch of people that had a lot of mope. so any time i see things like that, i tend to question whether or not i really need to be involved i'd rather try to play stuff that i think i know. i have a hard enough time making money in the stuff i think i know so i'll try to avoid is that one >> all th

both chairman clayton and [inaudible] has said that their current amounts from the permian treasury and reserve that they may come to congress here in the coming months and we know that this has moved very quickly in the last nine or ten months we have seen this explosion of it and this panel and this congress is not going to sit by idly with a lack of protection for investors and you have seen some of my colleagues express some show is a skepticism of the legitimacy of crypto currencies and certainly ico's. i want to look at very quickly what the role for congress may be to play in this and what chilling effect and may have from your opinion, quickly. >> yes, thank you, sir. there are two parts of the legislation. i think there's a immediate set of legislation t that needs to happen to authorize the fcc and other regulators to modify rules consistent with investment protection but to also facilitate investment capital development or capital investments. that is not to say they won't also be additional grants of power or additional protections that congress ads but at my broader point i