An array of pumpjacks operate near the site of a new oil and gas well in Midland's Permian Basin.The megadeal, announced Wednesday, also cements the energy giant’s future in fossil fuels as it becomes the nation’s dominant producer of shale oil.
The acquisition sets a mark for future Permian consolidation, said Andrew Dittmar, senior vice president at Enverus Intelligence Research, an energy analysis firm. Exxon’s biggest rival, Chevron, seems the most likely to respond with a transaction of its own, Dittmar said, either targeting small public companies or large-cap companies like Coterra Energy or Devon Energy.
“For Chevron, though, even that would fall short of adding the depth of inventory Exxon did with its Pioneer deal,” Dittmar said. Despite heightened scrutiny of big corporate mergers by the Biden administration’s antitrust lawyers, Woods said he doesn’t anticipate regulatory issues for the deal that’s expected to close early next year because the two companies will own only 15% of the production out of the Permian – an area that Pioneer CEO Scott Sheffield described as being as big as Saudi Arabia. However, the deal likely will face antitrust scrutiny from the Federal Trade Commission., Business Reporter.
Singapore Singapore Latest News, Singapore Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: NBCNewYork - 🏆 270. / 63 Read more »
Source: MarketWatch - 🏆 3. / 97 Read more »