XOM - Exxon CEO does not 'anticipate regulatory issues' in buying Pioneer
2023-10-11 10:29:26 ET
Pioneer Natural Resources Inc (NYSE: PXD) is in focus this morning after Exxon Mobil Corp (NYSE: XOM) confirmed plans of buying the hydrocarbon exploration giant for $59.5 billion in stock.
Exxon CEO Darren Woods discussed the deal with CNBC
Invezz first reported last week on the pending merger which, including debt, is valued at $64.5 billion. The Exxon-Pioneer deal is so far the largest in 2023.
The acquisition will help position Exxon Mobil as one of the largest producers in the Permian Basin. On CNBC’s “ Squawk Box ”, Darren Woods – its Chief Executive said today:
Pioneer’s capabilities, their tier one acreage, our tech, our development approach, brings higher recovery at lower cost and opportunity to reduce emissions.
In my opinion, this + deal kicks off Shale3.0 – bigger companies, bigger deals, even longer laterals, cost-focused, inventory for 2030+, eventually multi-basin.Evolution not revolution. US production to 14-15mmbopd by ‘27-‘28. #Shale3dot0 #EFT https://t.co/igMjcAqi4t
— Dan Pickering (@pickeringenergy) October 11, 2023
Exxon is also buying Pioneer Natural Resources as part of its commitment to grow domestically and avoid the rising geopolitical tensions .
Exxon says fossil fuels are not going anywhere any time soon
The agreement will replace each share of Pioneer Natural Resources with 2.3234 shares of Exxon Mobil. It is expected to complete in the first six months of 2024.
On Wednesday, CEO Woods reiterated that the world will continue to rely on fossil fuels for energy for quite some time still. He does not “anticipate any regulatory issues” to stand in the way of Exxon-Pioneer merger either.
The announcement arrives about a couple weeks before Exxon is scheduled to report its Q3 results. Consensus is for it to earn $2.31 a share this quarter versus $4.45 per share a year ago.
Shares of Exxon Mobil are down 3.0% at writing – PXD, though, is comfortably in the green.
*PIONEER CEO: EXXON IS BEST STOCK TO OWN OVER NEXT SEVERAL YEARS
— zerohedge (@zerohedge) October 11, 2023
The post Exxon CEO does not ‘anticipate regulatory issues’ in buying Pioneer appeared first on Invezz.