Exxon Mobil in talks to buy shale rival Pioneer Natural Resources for $60 billion: Report
(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Exxon last year earned a record $56 billion profit, two years after losses ballooned to $22 billion during the COVID-19 pandemic. The deal will leave four of the largest US oil companies in control of much of the Permian Basin shale field and its extensive oilfield infrastructure Antitrust experts told Reuters last week that Exxon and Pioneer stood a good chance of completing their deal, even though they would face heavy scrutiny.
This is because they could argue that together they will account for a small fraction of a vast global market for oil and gas. Meanwhile, Pioneer is the third-largest oil producer in the Permian basin, after Chevron Corp and ConocoPhillips, with rock-bottom production costs averaging about $10.50 per barrel of oil and gas.
Pioneer share price rose 0.8% to close at $237.41 in New York trading Tuesday, giving the company a market value of about $55 billion. The shares jumped as much as 3% more after the close of regular trading.
Exxon shares eased 0.4% to $110.45, for a market value of about $442 billion. Catch Live Market Updates here (With inputs from Reuters)"Exciting news! Mint is now on WhatsApp Channels
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