Exxon Mobil is expected to announce its acquisition of U.S. rival Pioneer Natural Resources for about $60 billion, according to anonymous sources. The deal would make Exxon the largest oil producer in the U.S. and secure a decade of low-cost production. The purchase could face scrutiny from antitrust regulators, as it would leave four major oil companies in control of the Permian Basin shale field. Exxon has rebounded from losses and debts by cutting costs and benefiting from high energy prices.
Exxon Mobil is set to acquire Pioneer Natural Resources for approximately $60 billion, positioning itself as the top U.S. oil producer and securing a decade of cost-effective production. The deal, expected to be a stock offer valued at over $250 a share, may face scrutiny from antitrust regulators due to its impact on the Permian Basin shale field. The acquisition marks a substantial turnaround for Exxon, which has recovered from significant losses and debts by slashing expenses, selling assets, and capitalizing on favorable energy prices.
Exxon’s strategic decision to maintain a heavy reliance on oil production, despite growing calls to shift towards renewable energy, has paid off with record-breaking profits of $56 billion last year. The company has prepared for major deals by setting aside $30 billion in cash, a move analysts believe will support the Pioneer acquisition. Pioneer, considered one of the most successful oil companies from the shale revolution, holds the third-largest position in the Permian basin. This acquisition follows Exxon’s recent $4.9 billion all-stock deal for Denbury Inc., reflecting the company’s resilience and stock value recovery.
