ExxonMobil to buy fracking giant Pioneer?
The Wall Street Journal is reporting that ExxonMobil is in advanced talks to acquire Pioneer Natural Resources
The deal could value the Permian shale basin producer at about $60 billion and would be Exxon’s largest acquisition since its $81 billion deal for Mobil in 1998. ExxonMobil would double its production in the Permian basin. Exxon produced a record 620,000 barrels per day (bpd) in the Permian basin in the second quarter. Pioneer's output in the basin averaged 711,000 bpd in the same period.
(Video Transcript)
ExxonMobil to acquire Pioneer
Now in the oil sector, Exxon Mobil is in advance talks to acquire Pioneer Natural Resources according to the Wall Street Journal today. The deal could value the Permian Basin share producer at about $60 billion. This would be Exxon's largest acquisition since Exxon sold an $81 billion deal for Mobil back in 1998.
Pioneer share price chart
I want to show you the value and the share price chart for Pioneer first of all to show you what could happen. If this deal does come to pass, this is not an all session stock on the IT platform, but do expect it to rise at the start of today's trade. It has a current valuation of around about $50 billion and if it's a $60 billion deal that's one heck of a premium to the price on the stock market today. So potentially we could well see a rise at the start of today's session for Pioneer. Also watching what's happening with Exxon, now this has seen some big declines this week on the back of the drop in the price of oil.
ExxonMobil
ExxonMobil would then double its production in the Permian Basin. Exxon produced a record 620,000 barrels of oil in the Permian Basin in the second quarter. Pioneer's output in the basin averaged 711 barrels of oil per day, so more than double ExxonMobil's production. A spokesperson for Exxon and Pioneer declined to comment on these reports in the Wall Street Journal, but I think certainly it could well be a stock story for today.
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