S&P 500 ^GSPC
Tesla TSLA
Microsoft MSFT
Amazon AMZN
Alphabet GOOG
Apple AAPL
Nvidia NVDA

ExxonMobil nears deal to buy Pioneer Natural Resources

US oil giant ExxonMobil is just a short distance away from closing a deal to take over Pioneer Natural Resources in a deal worth around USD 60 billion, according to the WSJ.

The vertically integrated oil giant ExxonMobil is expected to close a deal to buy Pioneer Natural Resources in the coming days.

The Wall Street Journal reported on the preliminary talks back in April this year, commenting that this year would be ideal for a deal "frenzy" in the oil sector, given ExxonMobil's reporting record profits in 2022, which the acquisition would push even deeper into the West Texas shale production business.

Pioneer's market capitalization is around $50 billion, and the transaction could be around $60 billion, according to the WSJ. This would mark the company's largest transaction since the 1999 "mega-merger" when Exxon merged with Mobil.

The acquisition would mark ExxonMobil's acquisition of a dominant position in the Permian Basin, a region the company considers integral to its growth plans.

The Pioneer-controlled acreage in the Midland Basin (the eastern portion of the Permian Basin, located in West Texas and New Mexico) is considered one of the largest "arable" lands for oil production in the U.S., and analysts say the company has the largest number of undeveloped locations suitable for production in the area.

However, people familiar with the matter, according to the WSJ, mention that there is still a possibility that the transaction will not happen.

Shares of ExxonMobil and Pioneer Natural Resources

Shares of Exxon Mobil (XOM) are up 0.01% to $109 in pre-market trading, with the last trade at $2,497.50 on the RM-SYSTEM exchange under the ticker BAAEXMOC.

Shares of Pioneer Natural Resources (PXD) are up 0.13% to $215.25 in pre-market trading.

Good news and a nice dip to boot. I'd say the oil price doesn't quite match the stock price of this segment, might not be a bad buy at all.

I agree.

I am a shareholder and for my part I see this as a good move even though the shares are now falling. Nice news! 👍

That's great! definitely nice news for me too!