Exxon to acquire Pioneer Natural Resources

Exxon Mobil has entered a historic agreement to acquire Pioneer Natural Resources for nearly $60 billion, marking the largest oil-and-gas deal in two decades. This move solidifies Exxon's position as a key player in the American fracking sector, particularly in West Texas where Pioneer holds extensive drilling opportunities. The purchase, at $253 per share, represents a nearly 7% premium over Pioneer's previous closing value of around $55.4 billion. Pioneer's premarket trading saw a 3% increase, while Exxon's stock experienced a slight drop of less than 1%.

This transaction, conducted entirely in stocks, capitalizes on Exxon's strong share performance compared to industry peers in recent years. With the surge in oil and gas prices, institutional investment firms have shown increased interest in Exxon, bolstering its stock position relative to other oil companies. This landmark acquisition is Exxon's largest deal since its $75 billion merger with Mobil in the late 1990s, making it the largest corporate transaction of the year so far. The Wall Street Journal had previously reported on the imminent collaboration between Exxon and Pioneer.