PXD Pioneer Natural Resources Co

By Collin Eaton and Benoit Morenne

Exxon Mobil struck a nearly $60 billion agreement Wednesday to buy Pioneer Natural Resources in the largest oil-and-gas deal in two decades, tying the energy giant's future to fossil fuels for decades to come.

The deal, at $253 per share, values Pioneer at an almost 7% premium to its closing value of about $55.4 billion Tuesday. It cements Exxon's status as the dominant player in the American fracking industry, now centered in West Texas where Pioneer has more places to drill than almost all of its rivals.

Shares in Pioneer rose about 3% in premarket trading on Wednesday. Exxon's stock dropped less than 1%.

The deal is Exxon's largest since its $75 billion merger with in the late 1990s and is the largest corporate transaction so far this year. The Wall Street Journal reported last week that Exxon and Pioneer were closing in on the tie-up.

Exxon's all-stock transaction leans heavily on its higher share price relative to its peers over the last year. Several institutional investment firms have snapped up more of Exxon's shares following a surge in oil and gas prices, keeping its stock performing more strongly than that of most other oil companies.

Write to Collin Eaton and Benoit Morenne at Collin.Eaton@wsj.com and Benoit.Morenne@wsj.com

(END) Dow Jones Newswires

October 11, 2023 06:54 ET (10:54 GMT)

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