XOM-Pioneer Acq Confirmed

[ChuckGeb]

Exxon XOM Mobil struck a nearly $60 billion agreement Wednesday to buy Pioneer Natural Resources PXD 0.76%increase; in the largest oil-and-gas deal in two decades, tying the energy giant’s future to fossil fuels.

The deal, at $253 a share, values Pioneer at an almost 7% premium to its closing value of about $55.4 billion Tuesday. It cements Exxon’s status as the dominant player in the American fracking industry, now centered in West Texas, where Pioneer has more places to drill than almost all of its rivals.

[Lbark]

I own both pxd and xom. What would anyone advise doing for i dont want this large of a position. I would rather take some of the money and put it in other permian plays. thanks.

[ChuckGeb]

IMHO I think FANG Diamondback is in the same league as these names and if you were looking for the dividends, possibly a combination of VNOM and FANG.

[aja57]

Not a great deal for the shareholders . Sheffield must be getting a great payout.
Frankly I hope the Feds put the breaks on this "deal".

The share exchange is what is fixed . NOT THE 253/Share

Shareholders will get 2.3234 shares of Exxon for each of their PXD shares

The value of 253/share was what 2.3234 shares of Exxon was worth on the day the deal was signed (Oct 5th)

If XOM is 100 on the deal closing day, shareholder will get 232.34/share

If XOM is 110 on the deal closing day, shareholder will get 255.57/share

If XOM is 120 on the deal closing day, shareholder will get 278.80/share

SPRING and IRVING, Texas – Exxon Mobil Corporation (NYSE: XOM) and Pioneer Natural Resources (NYSE: PXD) jointly announced a definitive agreement for ExxonMobil to acquire Pioneer. The merger is an all-stock transaction valued at $59.5 billion, or $253 per share, based on ExxonMobil’s closing price on October 5, 2023. Under the terms of the agreement, Pioneer shareholders will receive 2.3234 shares of ExxonMobil for each Pioneer share at closing. The implied total enterprise value of the transaction, including net debt, is approximately $64.5 billion.

[Fraser921]

All of these takeover deals only benefit the insiders as all their stock options vest.

Vtle went from 62.87 pre-deal + to 45.55 post deal. How did that help a shareholders?

Liz warren said she was worried about deal as that could raise prices.

-No mention of closing keystone
-fighting every pipeline
-stopping drilling in Alaska and GOM'
-raising royalties
-raising inflation due to IRA
- banning Russian oil
- Enabling Iran, Afghanistan fiasco, supporting terrorists arresting and imprisoning opponents
_ fist bumps with saudi arabia
Telling people they cant have gas stoves

but its all xom fault

[ChuckGeb]

It appears someone threw down Dan’s valuation and they agreed to go with it.

[allen46]

I don't like this deal and have a large position in PXD. PXD is dead money now. Will probably sell and put proceeds in other oil heavy stocks.

CVE, MEG, CPG, BTE KGEIF, and ATHOF are on my list to add to existing positions.

[Lbark]

I am thinking like you that I may sell my pioneer position. I also in Exxon, which may be dead money too. Somebody these other names are better.

[ChuckGeb]

I am adding to all positions indicated by Allen. All except Kolibri on Nutall’s list. Zoom call today at noon today for Kolibi and 1 Nutall, both times indicated are Central. For deep dive by Nutall into the names also see Fraser’s link posted a few weeks ago on Bloomberg.Lukewarm piece yesterday on MEG on SA but Nutall really likes that one.

[Fraser921]

Link is here

https://event.on24.com/wcc/r/4343868/F40590646070FF310093BB9A89AB15C0?partnerref=fundalert