Pioneer Natural Resources (PXD) -) shares surged following multiple media reports that Exxon Mobil (XOM) -) is in advanced talks for a $60 billion takeover of the shale producer.
The Wall Street Journal, which first reported in Exxon's interest in Pioneer earlier this year, said late Thursday that the oil and energy giant could unveil a formal takeover in the coming days. Such a deal would value the Irving, Texas, group at around $60 billion, a 20% premium to its Thursday closing share price, the paper reported.
The takeover, if completed, would be the largest since the $81 billion merger between Exxon and Mobil in 1998 and the largest deal of the year in U.S. markets, topping Pfizer's (PFE) -) $43 billion purchase of cancer-drug specialists Seagen (SGEN) -) in early March.
For Exxon Mobil the deal would secure the industry's largest stake in the Permian Basin, an oil-and-gas-rich expanse of land that runs through west Texas and New Mexico and is largely seen as a cheaper, more reliable area for drilling than other parts of the world.
Exxon said earlier this week it would likely post third-quarter operating profit of $8.3 billion to $11.4 billion, with around half of that coming from the group's main oil and gas business
That's largely in line with analysts' forecasts and firmly ahead of the group's $7.9 billion second-quarter tally. And it comes in part due to a surge in global oil prices, which has lifted WTI crude, the U.S. pricing benchmark, more than 28.5% over the third quarter.
Exxon Mobil shares were marked 2.62% lower at last check, to change hands at $106.14, while Pioneer shares surged 10% to $236.43.
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