Exxon investors ready to embrace buying existing oil over new drilling
© Reuters. FILE PHOTO: The logo of Exxon Mobil Corporation is shown on a monitor above the floor of the New York Stock Exchange in New York, December 30, 2015. REUTERS/Lucas Jackson/File Photo
A deal would bring Exxon to about 1.33 million barrels of oil and gas per day, the largest in the oilfield. In 2019, it set a 1 million barrel per day goal for 2025 and more recently pushed it back to 2027. The surge in oil and gas prices following Russia's invasion of Ukraine underscored the need for fossil fuels despite rapid gains in solar and wind energy. Reduced spending by U.S. oil producers allowed OPEC members to increase global oil prices this year by cutting their production.
Exxon was hoarding cash this year after paying off the huge debt it ran up in 2020 during the COVID-19 oil-price collapse. It has been holding some $30 billion in cash for the past year to give it the financial leeway to act when oil cycles turned, the company's Chief Financial Officer Kathryn Mikells said in July after second-quarter earnings.A deal would not be Exxon's first or second in shale. It paid $36 billion to acquire XTO Energy in 2010 after missing the first phase of the U.S.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How Exxon’s reported $60 billion deal could reshape Pioneer Natural Resources and IrvingBreaking news and exclusive reporting about business and technology in Dallas-Fort Worth, from real estate to retail to airlines
Read more »
Analysis-Exxon Mobil's megadeal to test climate-aware shareholdersAnalysis-Exxon Mobil's megadeal to test climate-aware shareholders
Read more »
Pioneer Natural, other Permian stocks rally on news an Exxon deal may be nextTomi Kilgore is MarketWatch's deputy investing and corporate news editor and is based in New York. You can follow him on Twitter TomiKilgore.
Read more »
Exxon-Pioneer deal talks: What Wall St, policymakers have to sayExxon-Pioneer deal talks: What Wall St, policymakers have to say
Read more »
Exxon-Pioneer deal talks: What Wall St, policymakers have to sayExxon Mobil (XOM.N) is in advanced talks to acquire Pioneer Natural Resources (PXD.N) in a deal that could value the Permian Basin producer at about $60 billion, according to people familiar with the matter.
Read more »