XOM - Exxon CEO doesn't see regulatory issues with Pioneer Natural deal

2023-10-11 08:28:57 ET

Exxon Mobil ( NYSE: XOM ) CEO Darren Woods doesn't expect to see regulatory hurdles to its almost $60 billion acquisition of Pioneer Natural Resources ( NYSE: PXD ).

"I think from a scale standpoint, we are still a small player in what is a very large market," Woods said in an interview on CNBC on Wednesday morning. "So we don't anticipate any regulatory issues here."

Woods explained that combined Exxon ( XOM ) and Pioneer Natural ( PXD ) would still have less than 15% of the production coming out of the Permian basin.

Pioneer Natural ( PXD ) shares rose 1.7% i n premarket trading on Wednesday, while Exxon ( XOM ) fell 2.8%. The transaction is expected to close in the first half of 2024, according to a statement on Wednesday.

"When you look at the portfolio we have developed today, our cost of supply is less than $35 a barrel," Woods said. "When you put those two together (combine XOM with PXD), that portfolio will be below $35 a barrel cost to supply. So it is a very competitive source of supply, which is good news, frankly, for the economy."

More on Pioneer Natural Resources, Exxon Mobil, etc.

• Pioneer Resources: Deal Killing Arguments
• Pioneer Natural Resources: Exit The Stock If Exxon Mobil Announces A Deal
• Will Exxon Mobil Make A Big Play By Buying Pioneer?
• Biggest stock movers today: Pioneer Natural Resources, Exxon Mobil, DaVita and more
• Exxon confirms deal to buy Pioneer Natural Resources for $59.5B in stock

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