(AOF) – Oil and gas company Exxon Mobil is reportedly in advanced discussions to acquire Pioneer Natural Resources in a deal that could value the shale oil and gas producer at around $60 billion ($56.93 billion). euros), according to information reported to Reuters which cites sources close to the matter. On the New York Stock Exchange, ExxonMobil’s stock fell 2.85% to $105.86 while that of Pioneer rose 9.4% to $235.16. A deal between Exxon and Pioneer could be reached soon.
This would be Exxon’s largest acquisition since its $81 billion purchase of Mobil in 1998. The transaction would allow Exxon to expand its presence in the Permian Basin in the southern United States.
The acquisition of Pioneer would allow Exxon to have more established oil lands to increase its production when needed, rather than risking its liquidity in the development of an unknown land, a move “completely logical”, comments Bill Smead, chief investment officer of Smead Capital Management.
Pioneer, whose stock market value stood at $50 billion on Thursday, is the third largest oil producer in the Permian Basin behind Chevron and ConocoPhillips.
Two days before this announcement of the potential takeover of Pioneer, again according to information from Reuters, ExxonMobil had chosen the asset manager Blackrock as a potential buyer of its majority stake in the main gas import terminal located off the coast of Porto Levante in Italy: The Adriatic LNG Terminal.
The entire regasification terminal would be valued at around 800 million euros. The US oil and gas company said it continues to work on the transaction to reach an agreement. Exxon indicated in March that it wanted to sell its 70.68% stake in this LNG terminal.
As for its latest accounts published at the end of July, ExxonMobil revealed a larger drop in profits than expected in a context of falling hydrocarbon prices and refining margins. The American group generated a net profit of $7.88 billion, or $1.94 per share, in the second quarter, compared to a profit of $17.85 billion, or $4.21 per share a year earlier.
The oil and gas company remains on track to achieve $9 billion in structural savings by the end of 2023 compared to 2019 after achieving $8.3 billion in savings to date.
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