Exxon grabs fracking company
US oil giants consider mega takeover
4/8/2023 4:01 p.m
While other companies are slowly planning their withdrawal from the oil and gas industry, the US giant ExxonMobil wants to continue investing and growing in the business. The preferred takeover target is the country’s leading fracking company.
A multi-billion dollar takeover may be imminent in the US oil industry. According to people familiar with the matter, ExxonMobil has held initial informal talks with Pioneer Natural Resources about a potential takeover of the US fracking giant.
After Exxon posted record profits last year, the US’s largest oil major is exploring ways to reinvest that money, according to people familiar with the company’s plans. In that regard, Exxon executives discussed a potential merger with at least one other company. Unlike some other international oil companies, Exxon is also focusing on oil as an energy source in the long term and is planning fewer investments in renewable energies such as wind or solar.
According to those informed, there are no formal takeover negotiations between Exxon and Pioneer. A possible deal, if it goes through at all, probably wouldn’t be sealed until later this year or next. According to the information, the Dallas-area-based fracking company is a top target for Exxon.
An acquisition of fracking company Pioneer, which has a market cap of around $49 billion, would likely be Exxon’s largest acquisition since its mega-merger with Mobil Corp in 1999 and give Exxon a dominant position in the oil-rich Permian Basin procure West Texas and New Mexico. Pioneer owns the largest acreage there of any oil and gas company and sits on substantial reserves in America’s most desirable fracking hotspot.