Exxon Mobil in Advanced Talks to Acquire Pioneer Natural Resources for $60 Billion

Oil and gas giant Exxon Mobil Corp (NYSE: XOM) is said to be in advanced talks to acquire shale-focused company Pioneer Natural Resources Co. According to a Wall Street Journal report citing an anonymous source familiar with the matter, the deal is estimated to be valued at up to $60 billion and could be closed within the coming days. Earlier in April, WSJ had that the two companies met for preliminary talks.

If the deal is completed, it would be one of the biggest takeover deals of the year, overshadowing Pfizer Inc.’s $43 billion purchase of cancer drug maker Seagen Inc. It would be Exxon’s most significant since its $81-billion merger with Mobil Corp in 1999 and make the company the leading producer in the U.S. oil basin. It has the potential to increase the oil giant’s daily output to about 1.2 million barrels, more than many OPEC nations. 

According to the anonymous source, although negotiations are in the advanced stage, the deal could still fall apart due to complications. 

A filing with the Securities and Exchange Commission (SEC) shows that Exxon Mobil’s third-quarter earnings received a major boost from the high crude oil prices. According to company estimates, rising crude oil prices added as much as $1.3 billion to its Q3 earnings compared to Q2, while improved industry margins boosted earnings from refining by up to $1.1 billion. Exxon, which is valued at about $436 billion, earned a record $55.7 billion in 2022 due to the high oil and gas prices. The company ended the year with $29.6 billion in cash and equivalents.

MarketWatch reports that Exxon shares (XOM) have fallen about 1% year to date, while Pioneer (PXD) stock is down about 6% in 2023. PXD was down 0.2% to $214.96 in Thursday’s market trading while XOM slid 2.25% to $108.89. Exxon stock broke out on Sept. 27, clearing a 118.84 buy point, but has sold off since. Meanwhile, US crude oil prices dropped by 2.3% to $82.31 a barrel on Thursday.

next