DEN - Pioneer Natural pops 8% after WSJ reports Exxon has talked about takeover

2023-04-10 10:07:27 ET

Pioneer Natural Resources ( NYSE: PXD ) +8.1% in early trading Monday after The Wall Street Journal reported Friday that Exxon Mobil ( NYSE: XOM ) has held preliminary talks over a potential acquisition of the company.

Pioneer ( PXD ) is the second-largest producer in the Permian Basin by operated oil production based on figures last month; combined, Exxon ( XOM ) and Pioneer produced ~1.2M boe/day from the Permian last year, and a tie-up would create the Permian's largest producer, surpassing current leader Occidental Petroleum ( OXY ).

However the deal talks turn out, Exxon's ( XOM ) probe into Pioneer ( PXD ) could indicate the company is running out of blockbuster organic growth ideas , WSJ Heard On The Street 's Jinjoo Lee writes, noting Guyana has proven to be a prolific find but other explorations have not been as successful.

Last year, Bloomberg reported Exxon ( XOM ) had approached Denbury ( DEN ), an oil producer with an extensive carbon dioxide-gathering infrastructure, about a potential takeover ; Denbury currently trades +0.7% .

"The party is over" for Exxon Mobil ( XOM ), whose shares have "very little chance of significant capital appreciation at present," David Alton Clark writes in an analysis published recently on Seeking Alpha .

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