6 big deal reports: Pioneer stock soars on Exxon buyout whispers | Pro Recap
Investing.com | Author Davit Kirakosyan
Published Apr 16, 2023 14:26
By Davit Kirakosyan
Investing.com -- Here is your daily Pro Recap of the biggest head-turning deal dispatches you may have missed this week: reports of Exxon's buyout talks with Pioneer, plus Emerson's agreement to take out National Instruments, Teck Resources' rejection of Glencore's overtures, and more.
Pioneer Natural Resources shares soar on the possible acquisition by Exxon/h2
Pioneer Natural Resources (NYSE:PXD) shares rose more than 5% on Monday following the Wall Street Journal's report that the company held “preliminary talks” with Exxon Mobil (NYSE:XOM) about a possible acquisition.
The report, which cited people familiar with the matter, noted that Exxon has held M&A talks with at least one other company, but Pioneer, which is the third-largest oil producer after Chevron (NYSE:CVX) and ConocoPhillips (NYSE:COP) in the Permian basin and the biggest in the U.S., is likely a top target.
Analysts suggest that Pioneer and other exploration and production companies might get acquired in the upcoming quarters, as oil giants like Exxon aim to boost their inventory.
Stifel cut its price target on Pioneer Natural Resources to $286.00 from $293.00 while maintaining a Buy rating. The analysts noted they see Pioneer and Endeavor Energy (private Midland operator) as the most likely targets for Exxon.
Moreover, based on its evaluations of rig intensity, valuation, and comparative performance, Stifel believes that a deal would be feasible for Exxon, but challenging for Pioneer to digest, especially since it has experienced approximately 40% underperformance in the last year. Overall, the firm considers the possibility of an immediate deal as unlikely, unless it comes with a premium of at least 25%.
Meanwhile, Bernstein raised its price target on Pioneer Natural Resources to $262.00 from $241.00 while maintaining an Outperform rating.
Pioneer Natural Resources shares rose more than 10% this week.
As always, InvestingPro subscribers got these headlines in real time.
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