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A filing with the SEC shows that Exxon Mobil’s third-quarter earnings got a big boost from higher crude oil prices
Oil and gas giant Exxon Mobil Corporation ,NYSE:XOM) is said to be in advanced talks to acquire shale-focused company Pioneer Natural Resources Co. According to the Wall Street Journal report Citing an unnamed source familiar with the matter, the deal is estimated to be valued at up to $60 billion and could be closed in the coming days. Earlier in April, WSJ said the two companies met for preliminary talks.
If the deal is completed, it would be one of the biggest acquisition deals of the year, surpassing Pfizer Inc.’s $43 billion purchase of cancer drug maker Cigene Inc. It would be Exxon’s most significant deal since its $81 billion merger with Mobil Corp. in 1999 and made the company the leading producer in the US oil basin. This has the potential to increase the oil giant’s daily output to about 1.2 million barrels, more than many OPEC countries.
According to the unnamed source, although talks are at an advanced stage, the deal may fall apart due to complications.
Exxon Mobil’s third-quarter earnings got a big boost from higher crude oil prices, a filing with the Securities and Exchange Commission (SEC) shows. Rising crude oil prices boosted third-quarter earnings by $1.3 billion compared to the second quarter, while improving industry margins boosted refining earnings by $1.1 billion, according to company estimates. Exxon, which is worth about $436 billion, earned a record $55.7 billion in 2022 due to higher oil and gas prices. The company ended the year with $29.6 billion in cash and equivalents.
market Watch reports Shares of Exxon (XOM) are down about 1% year to date, while Pioneer (PXD) stock is down about 6% in 2023. PXD was down 0.2% at $214.96. thursday market trading While XOM fell 2.25% to $108.89. Exxon stock broke out on September 27, clearing a 118.84 buy point, but has since sold off. Meanwhile, US crude oil prices fell 2.3% to $82.31 per barrel on Thursday.
Mercy Mutanya is a tech enthusiast, digital marketer, author and IT Business Management student. She enjoys reading, writing, doing crossword puzzles, and watching her favorite TV series.
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