Exxon Is In Advanced Talks In Order To Acquire Pioneer

Exxon Mobil is looking to acquire Pioneer Natural Resources and is in advanced talks. The deal could value the producer in the Permian shale basin at about $60 billion, as various sources close to the deal claimed.

According to Reuters.com,

?The acquisition would be Exxon’s biggest since its $81 billion deal for Mobil in 1998 and would expand its footprint in one of the most lucrative regions of the U.S. oil patch. Pioneer, which had a market value as of Thursday of $50 billion, is the third-largest producer of oil in the Permian basin after Chevron Corp (CVX.N) and ConocoPhillips (COP.N).?

The Permian shale basin stretches across parts of New Mexico and Texas and is one of the most important areas as far as the US energy industry is concerned. The importance lies in its ability to produce oil and gas at relatively low prices.

Successful negotiations between Pioneer and Exxon Mobil can lead to an agreement in the coming days. However, the matter is still confidential, and getting a full picture of the inside details seems difficult. Furthermore, both Pioneer?s and Exxon?s spokespersons refused to comment on the matter.

Currently, Exxon has a market value of $436 billion and is the biggest oil producer in the United States. It averages 3.8 million barrels of oil equivalent in a day (globally). Last year, Exxon earned $55.7 billion (which was a record) due to high prices of gas and oil. The company ended the year with $29.6 billion in cash.

Once Exxon acquires Pioneer, it will be able to control more established oil-producing land. It shall also be able to increase production when in need, and it will, thus, not need to risk valuable cash in developing unproven acreage.

Continue Reading:

• How to Navigate Target’s Return Policy: No Receipt, No Problem
• Is the Cat and Jack Return Policy Shopper-Friendly? Let’s Explore
• The Ultimate Guide to Salesforce Sales Cloud: Features and Benefits