Exxon Mobil, the largest oil producer in the United States, is reportedly in advanced talks to acquire Pioneer Natural Resources in a deal valued at around $60 billion. According to anonymous sources, if the negotiations are successful, an agreement could be reached in the coming days.
This potential acquisition would mark Exxon’s biggest deal since its $81 billion merger with Mobil in 1998. By acquiring Pioneer, Exxon would expand its presence in the Permian Basin, one of the most lucrative regions in the US oil industry. Spanning across Texas and New Mexico, the Permian Basin is highly sought-after due to its low extraction costs for oil and gas.
Ranked as the third-largest oil producer in the Permian basin, Pioneer has a market value of $50 billion. Its inclusion in Exxon’s portfolio would provide the company with more established oil-producing assets and reduce the risk associated with developing unproven acreage.
However, this deal is expected to attract significant political and regulatory scrutiny. In February, the White House accused Exxon of earning substantial profits at the expense of consumers. As a result, any agreement between Exxon and Pioneer would likely face close examination from various authorities.
Exxon currently holds a market value of $436 billion and is known for its average production of 3.8 million barrels of oil equivalent per day. Despite earning a record-breaking $55.7 billion last year, the company has experienced reduced profits in recent months due to falling energy prices caused by concerns over a global economic slowdown.
In summary, Exxon Mobil is reportedly in advanced talks to acquire Pioneer Natural Resources for around $60 billion. If successful, this deal would be Exxon’s largest acquisition since its merger with Mobil in 1998. The acquisition would expand Exxon’s presence in the Permian Basin and provide the company with more reliable oil production assets. However, the deal is expected to face scrutiny from political and regulatory entities due to previous accusations against Exxon.
