Is Exxon buying Pioneer Natural Resources?
Here’s what we know so farCopy link to section
According to the Wall Street Journal, Exxon has held informal talks with the Texas-based firm over a possible acquisition. It’s been on a lookout for a possible takeover after seeing record profit in 2022.
Nonetheless, the said report confirmed that such a deal, if it ever realizes, will take until the back half of this year or may even be pushed to the next year to be announced. Anonymous sources also told the WSJ:
There’s no formal process between Exxon and Pioneer. Exxon executives have discussed a potential tie-up with at least one other company.
Exxon stock is also in the green today.
What’s in it for Exxon Mobil Corp?Copy link to section
At writing, Pioneer Natural Resources Co has a market cap of over $50 billion. If Exxon indeed proceeds with this acquisition, it’ll be its largest since Mobil Corp in 1999.
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What’s also noteworthy is that the takeover will help Exxon expand its footprint in the Permian Basin of West Texas and New Mexico that the oil giant expects to be pivotal for its growth plans.
In February, the U.S. fracking giant reported weaker-than-expected revenue for its fiscal fourth quarter. Still, a DBS analyst in a recent note reiterated his $271 price target on Pioneer stock that represents more than a 20% upside from here.
Remember that it’s a dividend stock that currently pays a lucrative yield of 12.19%.