Exxon potential purchase of Pioneer

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moke
Posts: 37
Joined: Mon Aug 22, 2022 8:11 pm

Exxon potential purchase of Pioneer

Post by moke »

Exxon eyes potential purchase of shale driller Pioneer -WSJ

April 7 (Reuters) - Exxon Mobil Corp (XOM.N) has held preliminary talks with Pioneer Natural Resources Co (PXD.N) about a possible acquisition of the U.S. shale oil producer, the Wall Street Journal reported on Friday, citing people familiar with the matter.
mrbill
Posts: 80
Joined: Fri May 07, 2010 3:58 pm

Re: Exxon potential purchase of Pioneer

Post by mrbill »

Happy Easter weekend Dan and EPG members. This PXD talk about being bought by XOM is spreading.
Any thoughts on what PXD would go for if it came true?
dan_s
Posts: 34648
Joined: Fri Apr 23, 2010 8:22 am

Re: Exxon potential purchase of Pioneer

Post by dan_s »

My current valuation is $252/share.
Shares outstanding at 12-31-2022 was 235 million, so total purchase price at my valuation would be
~$58 Billion.

TipRanks: "In the last 3 months, 19 ranked analysts set 12-month price targets for PXD. The average price target among the analysts is $252.71. The 19 price targets range from $210 to $322."

PXD's current production is ~672,000 Boepd. PXD's free cash flow should be $3.5 to $4.0 billion this year.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34648
Joined: Fri Apr 23, 2010 8:22 am

Re: Exxon potential purchase of Pioneer

Post by dan_s »

(Bloomberg) – Oil giant ExxonMobil Corp. has held preliminary talks with Pioneer Natural Resources Co. over a possible acquisition of the large independent, the Wall Street Journal reported, citing people with knowledge of the matter.

Talks are informal and there is no formal process, the newspaper reported, adding that any possible deal would come together only later this year or next year.

Exxon has also discussed a potential tie-up with at least one other company, as the operator hunts for a blockbuster deal in shale, according to the newspaper.

Shares of Texas-based Pioneer, one of the largest independent U.S. oil producers, have fallen nearly 9% this year, giving it a valuation of $49 billion. Chief Executive Officer Scott Sheffield has in recent years been on an acquisition spree, purchasing Parsley Energy and DoublePoint Energy since 2020.

Exxon, whose shares have gained 4% this year, has a market capitalization of $468 billion.
Dan Steffens
Energy Prospectus Group
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