According to sources familiar with the matter, ExxonMobil is in talks to acquire its rival company, Pioneer Natural Resources, in what could be the largest acquisition by the renowned oil company in the last 24 years.
Exxon, with a market capitalization of $50 billion and its position as the largest crude oil producer in Texas, is seeking acquisitions to expand production following a series of significant quarterly profits, as reported by the Financial Times. This potential transaction would mark the largest since the historic merger between Exxon and Mobil in 1999.
The acquisition of Pioneer Natural Resources would further solidify ExxonMobil’s standing as the leading Western oil company. The Wall Street Journal initially reported the negotiations between the companies, although both declined to comment on this news.
A takeover of Pioneer would signal the end of an era for the company, which was founded in 1997 and has weathered the highs and lows of shale oil production, contributing to the United States becoming the world’s largest oil and gas producer.
ExxonMobil recently invested $5 billion in the acquisition of Denbury Resources, and a potential purchase of Pioneer Natural Resources would surpass the value of its $41 billion takeover of XTO Energy in 2009.
In 2022, ExxonMobil and Pioneer both reported record profits of $56 billion and $8 billion, respectively, following a sharp increase in oil and gas prices due to the war in Ukraine.
ExxonMobil Expects $16B Fuel and Chemical Profits by 2027
Executives at ExxonMobil anticipate that their profits from motor fuels and chemicals will surge to $16 billion by 2027, reflecting a significant increase of approximately $4 billion from their current earnings. This optimistic outlook is based on the expected continued growth in demand.
The biggest oil firm in the United States has achieved significant gains in its refining sector this year, largely attributed to a substantial increase in refining capacity and a strategic emphasis on higher-margin chemical products.
“Towards the end of this decade, we see demand for gasoline peaking, which means we have a long way to go,” ExxonMobil senior vice president Jack Williams said during a briefing at its headquarters in Texas.
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