Exxon close to buying Pioneer Natural for about $60B – WSJ

Exxon Mobil (NYSE:XOM) is nearing a deal to acquire Pioneer Natural Resources (NYSE:PXD) in a deal that would value the shale driller at about $60 billion.

A deal may be finalized in the coming days if the discussions don’t hit a last-minute obstacle, according to the WSJ report late Thursday, which cited familiar people familiar with the matter.

The news comes after the WSJ first reported in early April that Exxon (XOM) held preliminary, informal talks with Pioneer Natural Resources (PXD) about a possible acquisition. Exxon also discussed a potential tie-up with at least one other company as it seeks a blockbuster deal in the shale.

Pioneer Natural (PXD) has a market cap of $50.2 billion. An acquistion of Pioneer would likely be Exxon’s (XOM) largest since its purchase of Mobil in 1999. Exxon has a market cap of $445 billion.

Pioneer (PXD) is the second-largest producer in the Permian Basin by operated oil production, based on figures as of March. Combined, Exxon (XOM) and Pioneer produced ~1.2 million boe/day from the Permian last year, and a tie-up would create the Permian’s largest producer, surpassing current leader Occidental Petroleum (OXY).

Pioneer Natural (PXD) CEO Scott Sheffield, who announced in late April that he would be retiring at the end of the year, told Bloomberg in an interview at the time that reports of takeover talks with Exxon were “rumors” and that his retirement “had nothing to do with Exxon.”

A Pioneer Natural (PXD) acquisition would be the second in recent months for Exxon (XOM) after it agreed to buy Denbury Resources (DEN) for almost $5 billion in all-stock deal in July.