We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ExxonMobil (XOM) in Talks to Acquire Shale Driller Pioneer
Read MoreHide Full Article
Exxon Mobil Corporation (XOM - Free Report) is in preliminary talks to potentially acquire Pioneer Natural Resources Company , per the Wall Street Journal.
ExxonMobil is seeking a seismic deal to utilize its windfall profits. After generating historic profits in 2022, ExxonMobil has been exploring opportunities that could reshape the U.S. energy industry, while pushing it deeper into West Texas shale.
The acquisition will offer ExxonMobil a leading position in the Permian Basin of West Texas and New Mexico, an area crucial to its growth plans. The acquisition will likely be ExxonMobil’s largest merger after the one with Mobil Corporation in 1999.
ExxonMobil has been looking to make a purchase in the Permian Basin for months. The company’s interest in U.S. shale indicates that the oil giant may continue to tie its future opportunities to fossil fuels, possibly for decades.
Pioneer is the largest oil producer in the Permian Basin. In 2022, Pioneer produced an average of 650,000 barrels of oil equivalent per day in the basin. This is about 100,000 more than what ExxonMobil produced in the region last year.
Pioneer owns some of the high-quality assets in the Permian Basin. Pioneer’s recent acquisitions can stand for about 30 years of premium inventory. With the acquisition, ExxonMobil will have a vast inventory of economic drilling locations Pioneer gathered through the acquisitions of Parsley Energy Inc. and DoublePoint Energy, which had also drilled in the Permian Basin.
ExxonMobil’s strategy to focus on its oil and gas assets proved profitable last year. The company generated a record profit of $55.7 billion, which made it one of America’s most prosperous companies in fiscal 2022.
The acquisition will merge the largest Western oil company with a Texas shale driller holding vast reserves of oil in America’s most-coveted fracking hot spot. However, the potential talks may not lead to formal negotiations and ExxonMobil may opt for another company.
Price Performance
Shares of ExxonMobil have outperformed the industry in the past six months. The stock has gained 17.4% compared with the industry’s 15.6% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
Phillips 66 (PSX - Free Report) reported fourth-quarter 2022 adjusted earnings of $4 per share, missing the Zacks Consensus Estimate of $4.34. Lower-than-expected quarterly earnings were driven by a decline in contributions from the Chemicals segment. The negatives were partially offset by strong refining margins worldwide.
Phillips 66 received approval from the board of directors to hike its dividend. The new quarterly dividend of $1.05 per share reflects an increase of 8.2% from the previous quarter’s 97 cents and a 14% hike from the year-ago quarter’s 92 cents.
Enterprise Products Partners’ (EPD - Free Report) fourth-quarter 2022 adjusted earnings per limited partner unit of 65 cents beat the Zacks Consensus Estimate of 60 cents. Strong quarterly earnings were driven by higher contributions from the NGL and Natural Gas Pipelines & Services businesses.
Enterprise Products Partners is strongly committed to returning cash to shareholders. EPD’s board of directors increased its cash distribution to 49 cents per unit, suggesting a 3.2% hike from the last paid-out distribution of 47.5 cents.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ExxonMobil (XOM) in Talks to Acquire Shale Driller Pioneer
Exxon Mobil Corporation (XOM - Free Report) is in preliminary talks to potentially acquire Pioneer Natural Resources Company , per the Wall Street Journal.
ExxonMobil is seeking a seismic deal to utilize its windfall profits. After generating historic profits in 2022, ExxonMobil has been exploring opportunities that could reshape the U.S. energy industry, while pushing it deeper into West Texas shale.
The acquisition will offer ExxonMobil a leading position in the Permian Basin of West Texas and New Mexico, an area crucial to its growth plans. The acquisition will likely be ExxonMobil’s largest merger after the one with Mobil Corporation in 1999.
ExxonMobil has been looking to make a purchase in the Permian Basin for months. The company’s interest in U.S. shale indicates that the oil giant may continue to tie its future opportunities to fossil fuels, possibly for decades.
Pioneer is the largest oil producer in the Permian Basin. In 2022, Pioneer produced an average of 650,000 barrels of oil equivalent per day in the basin. This is about 100,000 more than what ExxonMobil produced in the region last year.
Pioneer owns some of the high-quality assets in the Permian Basin. Pioneer’s recent acquisitions can stand for about 30 years of premium inventory. With the acquisition, ExxonMobil will have a vast inventory of economic drilling locations Pioneer gathered through the acquisitions of Parsley Energy Inc. and DoublePoint Energy, which had also drilled in the Permian Basin.
ExxonMobil’s strategy to focus on its oil and gas assets proved profitable last year. The company generated a record profit of $55.7 billion, which made it one of America’s most prosperous companies in fiscal 2022.
The acquisition will merge the largest Western oil company with a Texas shale driller holding vast reserves of oil in America’s most-coveted fracking hot spot. However, the potential talks may not lead to formal negotiations and ExxonMobil may opt for another company.
Price Performance
Shares of ExxonMobil have outperformed the industry in the past six months. The stock has gained 17.4% compared with the industry’s 15.6% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at the following companies that presently buy a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Phillips 66 (PSX - Free Report) reported fourth-quarter 2022 adjusted earnings of $4 per share, missing the Zacks Consensus Estimate of $4.34. Lower-than-expected quarterly earnings were driven by a decline in contributions from the Chemicals segment. The negatives were partially offset by strong refining margins worldwide.
Phillips 66 received approval from the board of directors to hike its dividend. The new quarterly dividend of $1.05 per share reflects an increase of 8.2% from the previous quarter’s 97 cents and a 14% hike from the year-ago quarter’s 92 cents.
Enterprise Products Partners’ (EPD - Free Report) fourth-quarter 2022 adjusted earnings per limited partner unit of 65 cents beat the Zacks Consensus Estimate of 60 cents. Strong quarterly earnings were driven by higher contributions from the NGL and Natural Gas Pipelines & Services businesses.
Enterprise Products Partners is strongly committed to returning cash to shareholders. EPD’s board of directors increased its cash distribution to 49 cents per unit, suggesting a 3.2% hike from the last paid-out distribution of 47.5 cents.