Stellar Snippets
Shale company Exxon Mobil is close to buying rival Pioneer Natural Resources for an all-stock, $59.5 billion deal at $253/share.
This is supposed to be Exxon's biggest deal since merging with Mobil Corp in 1999, which is to be closed in the first half of 2024.
As per the companies' press release, Pioneer shareholders will receive 2.3234 Exxon shares for every Pioneer share they own.
Exxon expects its production volume in the Permian Basin to more than double to about 1.3 million barrels/day after they close the deal.
The Permian Basin has several yet-to-be-drilled sites which are expected to be lucrative considering the global demand.
Exxon Mobil CEO Darren Woods stated that the merger will provide additional "long-term value creation" which neither would have been able to do alone.
The combination of the two companies, Woods hopes, will "bring together environmental best practices" and reduce their carbon footprint.
Since the announcement, Pioneer shares have been up more than 10%, but both companies have struggled with their share prices in 2023.