Exxon CEO does not ‘anticipate regulatory issues’ in buying Pioneer

on Oct 11, 2023
  • Exxon confirmed plans of buying Pioneer Natural Resources on Wednesday.
  • Its CEO Darren Woods discussed the merger on CNBC's "Squawk Box".
  • XOM is down 3.0% at writing but PXD is trading up more than 1.0%.

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Pioneer Natural Resources Inc (NYSE: PXD) is in focus this morning after Exxon Mobil Corp (NYSE: XOM) confirmed plans of buying the hydrocarbon exploration giant for $59.5 billion in stock.

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Exxon CEO Darren Woods discussed the deal with CNBC

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Invezz first reported last week on the pending merger which, including debt, is valued at $64.5 billion. The Exxon-Pioneer deal is so far the largest in 2023.

The acquisition will help position Exxon Mobil as one of the largest producers in the Permian Basin. On CNBC’s “Squawk Box”, Darren Woods – its Chief Executive said today:

Pioneer’s capabilities, their tier one acreage, our tech, our development approach, brings higher recovery at lower cost and opportunity to reduce emissions.

Exxon is also buying Pioneer Natural Resources as part of its commitment to grow domestically and avoid the rising geopolitical tensions.  

Exxon says fossil fuels are not going anywhere any time soon

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The agreement will replace each share of Pioneer Natural Resources with 2.3234 shares of Exxon Mobil. It is expected to complete in the first six months of 2024.

On Wednesday, CEO Woods reiterated that the world will continue to rely on fossil fuels for energy for quite some time still. He does not “anticipate any regulatory issues” to stand in the way of Exxon-Pioneer merger either.

The announcement arrives about a couple weeks before Exxon is scheduled to report its Q3 results. Consensus is for it to earn $2.31 a share this quarter versus $4.45 per share a year ago.

Shares of Exxon Mobil are down 3.0% at writing – PXD, though, is comfortably in the green.

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