Mega Merger And Revenue Boost Exxon Wants To Rule The Shale Patch

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A merger with Pioneer would be Exxon's largest M&A deal since its purchase of Mobil in 1999 and the second in recent months after it agreed in July to buyDenbury Resources

Back in April, Exxon Mobil’s NYSEXOM CEO Darren Woods touted to investors the company's newly created ‘Low Carbon’ business which he claimed has the potential to outperform its legacy oil and gas business within a decade and generate hundreds of billions in revenues. Woods outlined projections showing how the business has the potential to hit revenue of billions of dollars within the next five years; tens of billions in 5-10 years, and hundreds of billions after the initial 10-year ramp-up.

To wit, CrownRock, one of the Permian's biggest private producers, has hired bankers to advise it on a potential deal with an asking price of $10 billion to $15 billion, 'M&A has been sort of heating up. I generally think you are going to see some more deals. I think the bottom line is we are kind of in a sweet spot for oil prices.

 

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