Pioneer Natural Resources, with a US$50 billion market value, ranks third in Permian basin oil production, trailing Chevron and ConocoPhillips.
Pioneer, which had a market value as of Thursday of US$50 billion, is the third-largest producer of oil in the Permian basin after Chevron Corp and ConocoPhillips. That basin, which stretches across parts of Texas and New Mexico, is the US energy industry’s most coveted because of its relatively low cost to extract oil and gas.
Exxon, which has a market value of US$436 billion, is the largest US oil producer with an average 3.8 million barrels of oil equivalent per day from its global operations. Acquiring Pioneer would give Exxon more established oil-producing land it can rely on to increase production when needed, rather than risk its cash on the development of unproven acreage.
The potential deal is set to attract political and regulatory scrutiny, after the White House accused Exxon in February of achieving bumper profits at the expense of consumers.