Pioneer Natural Resources (PXD) -) shares surged higher in pre-market trading following multiple media reports that suggest Exxon Mobile (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 that would value the Irving, Texas-based group at around $60 billion, a 20 premium to its Thursday closing share price.
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 specialists Seagen (SGEN) -) in early March.
It would also give Exxon a 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 in other parts of the world.
Exxon said earlier this week it would likely post third quarter operating profits of between $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, thanks in part to a surge in global oil prices that has lifted WTI crude, the U.S. pricing benchmark, more than 28.5% over the third quarter.
Exxon Mobil shares were marked 1.64% lower in pre-market trading to indicate an opening bell price of $107.20 per share while Pioneer shares surged 101.6% to $239.92 each.
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