ExxonMobil Seals Its Megadeal for Pioneer Natural Resources. Time to Buy the Oil Giant?
ExxonMobil (NYSE: XOM) has agreed to buy Pioneer Natural Resources (NYSE: PXD) in an all-stock deal valued at $64.5 billion, including Pioneer's debt. The transaction will vault Exxon up the leader board to become the largest producer in the Permian Basin. The combination will also enhance Exxon's growth runway in the leading oil basin.
Here's a closer look at the deal and whether it makes the oil giant a buy.
Rumors have been swirling around Exxon and Pioneer since April. The oil giant finally sealed that deal, agreeing to buy Pioneer Natural Resources in an all-stock merger at $253 per share. That's a 9% premium to its 30-day volume-weighted average price as of Oct. 5, right before the latest rumors caused Pioneer's stock price to pop. The oil behemoth will exchange 2.3234 of its shares for each share of Pioneer Natural Resources.
Source Fool.com
