XOM - Pioneer Natural Resources Is Great. Here's Why You Shouldn't Buy It.
2024-01-14 07:04:00 ET
Pioneer Natural Resources (NYSE: PXD) is one of the larger U.S. onshore oil and natural gas companies. There are a lot of things to like about the stock, including the company's 20 years' worth of future drilling opportunities and highly efficient operations. It's why ExxonMobil (NYSE: XOM) has agreed to buy the company. Here's why you might not want to follow Exxon's lead.
Exxon and Pioneer Natural Resources have agreed on a purchase price of $253 per share. The deal is an all-stock transaction, so in actuality Pioneer shareholders will get 2.3234 shares of Exxon for each Pioneer share they own. That means that the real value of the transaction is entirely dependent on Exxon's share price when it closes. Given that the energy sector is highly volatile, that $253 per share figure is likely to change over time.
Image source: Getty Images.
For further details see:
Pioneer Natural Resources Is Great. Here's Why You Shouldn't Buy It.