ExxonMobil considers $60 billion acquisition of Pioneer Natural Resources By Investing.com

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<p>ExxonMobil (NYSE:) Corp, under the leadership of CEO Darren Woods, is considering a strategic $60 billion acquisition of <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Pioneer Natural Resources </span></span> (NYSE:) Co, a US competitor valued at $55 billion. The potential deal was reported on Monday, October 9, and aligns with Woods’ belief that oil and gas will continue to play a critical role in the world’s energy landscape despite record-high global oil demand.</p>
<p>The merger would establish a shale-focused powerhouse producing nearly 4.5 million barrels of oil equivalent daily. However, this could potentially incite antitrust issues amidst worldwide endeavors to curtail greenhouse gases. The proposed Pioneer deal would bolster Exxon’s net-zero goal in the Permian by 2030, given the Permian Basin’s proximity to Exxon’s Gulf Coast refineries and Pioneer’s flexible, globally linked production.</p>
<p>ExxonMobil, the best-performing energy stock post-pandemic and outperforming Pioneer by over 40 percentage points, has a substantial $30 billion cash reserve, further propelling this potential acquisition. This decision follows Exxon’s history of pivotal strategic decisions shaping the energy sector, like Lee Raymond’s $80 billion Mobil Corp merger and Rex Tillerson’s $31 billion XTO Energy acquisition.</p>
<p>In reaction to the potential deal, PXD’s shares jumped 10.5% on Friday and climbed an additional 1.1% on Monday, while XOM rebounded with a 4% rise on Monday following a 1.7% drop on Friday. Wall Street analysts have given Exxon stock a Moderate Buy rating, anticipating a 13.63% upside and an average price target of $126.20 per share.</p>
<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&amp;C.</em></p>
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