Exxon Mobil Near $60 Billion Deal to Acquire Pioneer Natural Resources
Exxon Mobil is reportedly on the verge of finalizing a deal to acquire Pioneer Natural Resources for approximately $60 billion. According to The Wall Street Journal, the agreement could be concluded in the coming days unless unforeseen obstacles arise during last-minute negotiations.
The potential acquisition represents a significant move for Exxon Mobil, as it would grant the energy company a substantial presence in the oil-rich Permian Basin. Pioneer Natural Resources, known for its expertise in shale drilling, has been a pioneer in tapping the Permian Basin’s vast resources.
Earlier discussions between Exxon Mobil and Pioneer Natural Resources were reported in April by The Wall Street Journal. At that time, the news caused a 4.5% surge in Pioneer stock on April 10.
Pioneer Natural Resources currently has a market capitalization of $50.1 billion, while Exxon Mobil boasts a valuation of $436 billion.
Since extended trading has already concluded, any immediate reaction from investors is unlikely.
In Thursday’s market trading, Pioneer Natural Resources stock experienced a slight 0.2% decline, finishing at $214.96.
Meanwhile, Exxon Mobil shares dropped 2.25% to close at $108.89 on Thursday, falling below its 200-day moving average after surpassing the 50-day moving average. The company had recently broken out on September 27, surpassing a buy point of $118.84, but has since faced a sell-off.
In addition to these developments, U.S. crude oil prices fell 2.3% to $82.31 per barrel on Thursday, contributing to the challenging climate in the energy sector.
The finalization of this deal would significantly impact Exxon Mobil’s operations and its competitive position in the market. Moreover, it would represent yet another transformative move in the energy sector, as companies continue to seek strategic partnerships and acquisitions to navigate the rapidly changing industry landscape.
For the latest updates on the stock market and more, follow Ed Carson on Twitter at @IBD_ECarson and Threads at @edcarson1971.
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