Exxon Mobil Corp. (XOM.N) is in advanced talks to acquire Pioneer Natural Resources Co., (PXD.N). Should this deal materialise, it could be the biggest one of the year.
Exxon eyeing Pioneer in possible $60bn acquisition
Experts estimate that such an acquisition could be worth as much as $60bn. They would be Exxon’s most significant endeavour since the $81bn merger with Mobil Corp. in To date, one of 2023’s biggest agreements were the Pfizer Inc. $43bn acquisition of Seagen Inc.
The Wall Street Journal first reported the possibility of an Exxon takeover of Pioneer and said the details of the deal could likely be ironed out in the next few days. On Thursday, Pioneer closed trading at $214.96, pegging the company’s value at $50.1bn.
When approached by Bloomberg for comment, both Exxon and Pioneer declined to respond to what they called ‘market rumours’. The latter-mentioned company’s prospects attracted interest since its founder and chief executive officer, Scott Sheffield, announced his retirement at the end of 2023.
The unification of Exxon and Pioneer would make the combined organisation the most prominent acreage holders in the Permian Basin and boost barrel output to approximately 1.2m a day. Additionally, it will expand XOM.N’s top-tier drilling locations by decades well beyond 2050.
Exxon experienced financial stumbles during COVID-19 as oil prices plunged. It soldiered on by cutting costs and targeted investments, seeing a profit surge of $59bn in 2022. Last year, XOM.N stock gained more than 80%.
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In July, Darren Woods, chief executive officer of Exxon, told investors the company always has an eye on potential mergers and acquisitions. It would, however, be discerning before entering any deals.
