Pioneer Natural Resources (NYSE:PXD) stock is on the rise Wednesday after agreeing to a $60 billion acquisition deal with Exxon Mobil (NYSE:XOM).
That deal has Exxon Mobile agreeing to acquire shares of PXD stock in an all-stock transaction. The total value of this offering is $59.5 billion, which comes to $253 per share. This represents an 18% premium to PXD’s stock price on Oct. 5, which was the last day of trading before rumors of the deal began to spread.
The boards of directors at Pioneer Natural Resources and Exxon Mobil have already given their unanimous support to the deal. If all goes well with regulators and shareholders, the merger should be completed in the first half of 2024.
Benefits of the PXD Stock Deal
Pioneer Natural Resources and Exxon Mobil are both expecting benefits from the combination of the companies. An example of this is the transformation of Exxon Mobile’s upstream portfolio, which includes more than doubling its Permian footprint.
Exxon Mobil also notes that it will be able to produce more barrels of oil per day following the acquisition. It expects 1.3 million barrels of oil equivalent per day (MOEBD) based on 2023 volumes. That would be over double what it produces now. That number is estimated to increase to 2 MOEBD in 2027.
PXD stock is up 1.4%, and XOM stock is down 3.3% as of Wednesday morning. Investors will note that these shares aren’t seeing larger movements today as reports of the deal last week already affected the stocks.
There’s even more stock market news that traders are going to want to read about down below!
We’re offering up all of the latest stock market coverage that traders need to know about on Wednesday! Among that is what’s happening with shares of Hyliion (NYSE:HYLN), Hyliion (NYSE:HYLN) and Wheeler Real Estate IT (NASDAQ:WHLR) stock today. All of that news is ready to go at the following links!
More Wednesday Stock Market News
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
