- On Wednesday, Exxon Mobil announced a monumental nearly $60 billion deal to acquire Pioneer Natural Resources, marking the largest oil-and-gas transaction in two decades. This deal, priced at $253 per share, values Pioneer at an almost 7% premium compared to its Tuesday closing value of approximately $55.4 billion.
- This acquisition solidifies Exxon's position as a dominant force in the American fracking industry, now centered in West Texas, where Pioneer possesses more drilling opportunities than most of its competitors. In response, Pioneer's premarket trading saw a 3% increase, while Exxon's stock experienced a marginal drop of less than 1%.
Why it matters
This transaction represents Exxon's most significant deal since its $75 billion merger with Mobil in the late 1990s and stands as the largest corporate transaction of the year thus far. Reports last week in The Wall Street Journal hinted at the impending merger between Exxon and Pioneer.