Exxon Could Spend Tens of Billions of Dollars to Buy Pioneer
Exxon Mobil (XOM:US) is reportedly considering whether to put its pile of cash to work and acquire driller Pioneer Natural Resources (PXD:US), according to the report in the Wall Street Journal.
The discussions between the two oil companies are still informal. While Exxon is also considering other targets, Pioneer is its “top target.”
The oil behemoth ended the year with nearly $30 billion in cash after posting a record profit year as it earned $55.7 billion in 2022. Another WSJ scoop about Exxon discussed the company’s failed multibillion-dollar bet to find oil in Brazil.
Pioneer, on the other hand, is the third-biggest oil producer in the States, behind Chevron (CVX:US) and ConocoPhillips (COP:US). The oil producer was rumored to be interested in acquiring smaller rival Range Resources, although the company denied such reports.
Pioneer said it is "not contemplating a significant business combination or other acquisition transaction."
The company’s stock gained around 8% on the WSJ report and the PXD shares were trading nearly 3.6% into the red till the closure of market on April 6, but then got back up and currently trade around 2.25% in gains.
Shares were in the spotlight at Capitol Hill in recent months after Congressman Kevin Hern disclosed last month he sold between $1 million and $5 million worth of PXD shares on February 01, when it closed at $223.96.
Similarly, Congressman Van Taylor also sold between $1 million and $5 million worth of XOM shares on November 28, when the stock closed at $109.81.
Exxon and Pioneer shares closed at $115.23 and $225.10 on Wednesday, respectively.
