ExxonMobil closes a $59.5 billion deal to buy natural resources giant Permian Shale

Exxon Mobil (XOM) will buy the Permian shale giant Leading natural resources (bxd) for $59.5 billion, after reports last week that an agreement was close to being reached. XOM stock fell early Wednesday. Pioneer Natural rose modestly, and is actually up strongly after the acquisition hype.

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Exxon will pay $253 per share for Pioneer Natural Resources in the all-stock deal. Investors will receive 2.2324 shares of Exxon stock for every share of PXD stock. The total enterprise value, including net debt, is $64.5 billion.

Exxon expects to close the deal in the first half of 2024.

The acquisition would give Exxon a key position in the Permian Shale Basin in eastern New Mexico and western Texas. Exxon said the volume of its production in the Permian Basin will double to 1.3 million barrels per day.

On October 5, The Wall Street Journal reported that ExxonMobil was close to acquiring Pioneer Natural for nearly $60 billion. On Tuesday night, Bloomberg said a deal for more than $250 a share could happen on Wednesday. Last April, the Wall Street Journal reported that Exxon and Pioneer were in early talks.

PXD stock rose 1.6% early Wednesday to above 241. Exxon stock fell 3.3%.

On Tuesday, Pioneer stock advanced 0.8% to 237.41, while XOM stock fell 0.2% to 110.45. At Tuesday’s close, Pioneer’s stock market cap was $55.35 billion. Last Thursday, PXD stock was valued at $50.1 billion.

Crude oil futures were down nearly 1% Wednesday morning to nearly $85 a barrel.

Please follow Ed Carson on X/Twitter at @IBD_ECarsonTopics in @edcarson1971 And Bluesky V @edcarson.bsky.social For stock market updates and more.

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