According to multiple media reports, Exxon Mobil (XOM) is planning a $60 billion U.S. takeover of shale driller Pioneer Natural Resources (PXD).
The acquisition is likely to be announced within days, according to the reports. The deal would be Exxon’s biggest purchase since its merger with Mobil back in 1999.
The blockbuster takeover would also be bigger than Occidental Petroleum’s (OXY) $38 billion U.S. purchase of Anadarko in 2019.
Acquiring Pioneer would make Exxon Mobil the dominant player in the oil fields of both Texas and New Mexico. Pioneer currently owns some of the largest untapped oil fields in the U.S.
The deal comes after elevated crude oil prices in 2022 led to record profits at all the major oil producers and left Exxon Mobil flush with cash.
A takeover of Pioneer Natural Resources also demonstrates that Exxon Mobil is still focused on fossil fuels, even though it has also gotten into the lithium battery business in recent years.
Exxon Mobil’s stock fell 2% in premarket trading on news of the potential deal. Its stock has gained 2% this year to trade at $108.99 U.S. per share.
Pioneer’s stock jumped 11% higher on news of the takeover to reach $237.71 U.S. a share. Its share price had previously declined 2% on the year.
