ExxonMobil Corporation (NYSE:XOM) is reportedly in negotiations to acquire Pioneer Natural Resources Co. (NYSE:NYSE:PXD) in a deal valued at $60 billion, as initially reported on Friday. This move, if it materializes, would present one of Exxon's most significant transactions in over two decades. Roth analysts have suggested that this price could offer a 13% premium to Pioneer shareholders.
According to InvestingPro data, ExxonMobil has a robust market capitalization of $420.46 billion and a P/E ratio of 8.41. The oil giant plans to utilize its record profits from 2022 to expand its presence in the Permian Basin, which spans Texas and New Mexico. InvestingPro Tips reveals that ExxonMobil has been consistently increasing earnings per share and has raised its dividend for 40 consecutive years, reflecting the company's strong financial position.
Despite a decrease in Exxon's shares before the market opened on Friday, the acquisition could potentially become Exxon's largest tie-up since its merger with Mobil in 1999. The InvestingPro data also reveals a recent 1-week price total return of -7.31% for ExxonMobil.
Pioneer Natural Resources comes with a market capitalization of $50 billion and holds the title as Texas' largest crude producer. The company's acquisition could significantly reshape the U.S. oil market. InvestingPro data shows that Pioneer has a P/E ratio of 9.63 and a dividend yield of 7.8%. According to InvestingPro Tips, Pioneer has a high return on invested capital and has raised its dividend for 5 consecutive years, suggesting a strong financial performance.
On the same day, during "Halftime Report Final Trades", Jim Lebenthal from Cerity Partners highlighted ExxonMobil's appealing 3.2% dividend yield and active share repurchase initiative. He also pointed out the potential takeover of Pioneer Natural Resources by ExxonMobil.
In other news, Karen Firestone from Aureus Asset Management endorsed Fortive (NYSE:FTV) Corporation due to its Q2 sales growth of 4.3% YoY to $1.53 billion, surpassing consensus estimates. Meanwhile, Joshua Brown from Ritholtz Wealth Management chose CrowdStrike Holdings (NASDAQ:CRWD), Inc., a company experiencing substantial stock growth this year and credited for introducing the first zero-code application development platform in the cybersecurity sector.
For more detailed insights and tips on these stocks, you can explore InvestingPro for ExxonMobil and InvestingPro for Pioneer Natural Resources. These platforms provide a wealth of additional tips and real-time metrics to guide your investment decisions.
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