HomeEconomyExxon in advanced talks to acquire Pioneer Natural Resources

Exxon in advanced talks to acquire Pioneer Natural Resources

Exxon Mobil is in advanced talks to acquire Pioneer Natural Resources in a deal that could value the shale oil and gas producer at around $60 billion.

Exxon Mobil is in advanced talks to acquire Pioneer Natural Resources in a deal that could value the shale oil and gas producer at around $60 billion (€56.93 billion), sources close to the case said on Thursday. . This would be Exxon’s largest acquisition since the purchase of Mobil for $81 billion in 1998. The transaction would allow the energy company to expand its presence in the Permian Basin, in the southern United States, one of the most profitable regions of the basin. American oil company.

Pioneer, whose stock market value was $50 billion on Thursday, is the third-largest oil producer in the Permian Basin, behind Chevron and ConocoPhillips. This basin, which stretches between Texas and New Mexico, is coveted by the American energy industry due to the relatively low cost of extracting oil and gas. In the second quarter, Exxon achieved record production in the Permian Basin with 620,000 barrels of oil. However, this is less than Pioneer’s 711,000 barrels in the same region and during the same period.

Daily production of almost 4 million barrels of oil equivalent

If negotiations are successful, a deal between Exxon and Pioneer could be reached in the coming days, the three sources said. Exxon is the largest American oil group and produces an average of 3.8 million barrels of oil equivalent per day globally.

The acquisition of Pioneer would allow Exxon to have more established oil fields to increase its production when necessary, rather than risk its cash flow in the development of an unknown field, a “completely logical” move, according to Judge Bill Smead. Smead investment director. Capital management.

Author: TT with Reuters
Source: BFM TV

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