Skip to main content

Market Overview

ExxonMobil Explores Acquisition Of Pioneer Natural Amid Bid To Dominate Permian Basin

Share:
ExxonMobil Explores Acquisition Of Pioneer Natural Amid Bid To Dominate Permian Basin

Exxon Mobil Corp. (NYSE: XOM) is reportedly in early stage discussions with Pioneer Natural Resources Co. (NYSE: PXD) about a potential acquisition, the Wall Street Journal reported Friday, citing people close to the matter.

The talks, which have been informal thus far, could transform the U.S. oil and gas industry and strengthen Exxon's presence in West Texas shale.

Exxon executives have considered a partnership with at least one other company, the report said, that no formal negotiations are currently underway with Pioneer. It is possible that the discussions may not lead to a formal agreement or that Exxon may ultimately choose to pursue another target.

If a deal were to be reached between Exxon and Pioneer, it likely would not materialize until late this year or sometime next year, the report said.

Read also: A Bull Case For Marathon Petroleum As Margins For Refining Become More Profitable

Pioneer, which boasts a market cap of $48.29 billion, would be Exxon's most significant acquisition since its merger with Mobil Corp in 1999. The Journal noted a Pioneer acquisition would solidify Exxon's dominance in the oil-rich Permian Basin of West Texas and New Mexico, an area the company considers crucial to its growth strategy.

An acquisition of Pioneer would also surpass other major deals in the U.S. oil industry, the report said, including Occidental Petroleum Corp.'s (NYSE: OXY) 2019 purchase of Anadarko Petroleum for $38 billion and Exxon's 2009 acquisition of XTO Energy for $41 billion, which included about $10 billion in XTO debt.

Read next: Wall Street Analysts Raise Their Oil Price Forecasts After Shocking Supply Cuts By OPEC+

Photo via Shutterstock. 

 

Related Articles (PXD + XOM)

View Comments and Join the Discussion!

Posted-In: Large Cap M&A Mid Cap News Rumors Commodities Top Stories Markets Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com