Exxon Buys Pioneer in $60 Billion Deal to Create Shale Giant
October 11 2023 - 7:09AM
Dow Jones News
By Collin Eaton and Benoit Morenne
Exxon Mobil struck a nearly $60 billion agreement Wednesday to
buy Pioneer Natural Resources in the largest oil-and-gas deal in
two decades, tying the energy giant's future to fossil fuels for
decades to come.
The deal, at $253 per share, values Pioneer at an almost 7%
premium to its closing value of about $55.4 billion Tuesday. It
cements Exxon's status as the dominant player in the American
fracking industry, now centered in West Texas where Pioneer has
more places to drill than almost all of its rivals.
Shares in Pioneer rose about 3% in premarket trading on
Wednesday. Exxon's stock dropped less than 1%.
The deal is Exxon's largest since its $75 billion merger with in
the late 1990s and is the largest corporate transaction so far this
year. The Wall Street Journal reported last week that Exxon and
Pioneer were closing in on the tie-up.
Exxon's all-stock transaction leans heavily on its higher share
price relative to its peers over the last year. Several
institutional investment firms have snapped up more of Exxon's
shares following a surge in oil and gas prices, keeping its stock
performing more strongly than that of most other oil companies.
Write to Collin Eaton and Benoit Morenne at Collin.Eaton@wsj.com
and Benoit.Morenne@wsj.com
(END) Dow Jones Newswires
October 11, 2023 06:54 ET (10:54 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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