The Briefing Room
General Category => Science, Technology and Knowledge => Energy => Topic started by: libertybele on April 11, 2023, 12:53:24 am
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Exxon Mobil, Pioneer rumors spark fracking M&A talk
Exxon Mobil is reportedly in preliminary discussions to acquire Pioneer Natural Resources as part of the company’s Permian Basin strategy, analysts say.
Based in Irving, Texas, Pioneer is a hydrocarbon exploration company with a market capitalization of around $52 billion and is the third-largest oil producer behind Chevron Corp and ConocoPhillips in the basin, according to Refinitiv data.
Quincy Krosby, chief global strategist for LPL Financial, told FOX Business in an interview, "The potential deal suggests that Exxon sees value in the Permian Basin, the largest in the U.S., given Pioneer's dominant position."
"Moreover, it indicates that Exxon expects that oil prices will remain high enough to warrant the investment and that oil products will continue to be a major source of energy in the short to medium term," he added.
Meanwhile, Exxon spokesperson Emily Mir told FOX Business on Monday, "We do not comment on market rumors or speculation."............
https://www.foxbusiness.com/markets/exxonmobil-pioneer-rumors-spark-fracking-ma-talk
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Sucks... $53B market cap acquisition on the crest side of the market cycle?
Just like XTO, they are going to badly over pay.