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Pioneer, Exxon Deal Sees Goldman Sachs, Citigroup as Lead Advisors

Published 12/10/2023, 04:16 am
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In a significant transaction involving Pioneer and Exxon (NYSE:XOM), a prominent player in the Oil, Gas, and consumable Fuels industry according to InvestingPro Tips, Goldman Sachs Group (NYSE:GS) and Citigroup Inc (NYSE:C). have emerged as the lead advisors, positioning them to earn substantial fees. Exxon, with a market cap of 419.1B USD as per InvestingPro data, has a history of maintaining dividend payments for 53 consecutive years, a fact that might have played a role in the confidence of the advisors. The deal also saw Centerview Partners advising Exxon, while Pioneer was guided by Morgan Stanley (NYSE:MS) and Bank of America (NYSE:BAC). Such transactions typically generate tens of millions in advisory fees. For instance, Centerview earned an $88 million fee from the Seagen Inc. - Pfizer Inc. (NYSE:PFE) deal.

In the face of the potential for high earnings from such deals, global mergers and acquisitions (M&A) activity has been sluggish this year. The slowdown is due to increased regulatory scrutiny, high-interest rates, and market volatility. M&A volumes in the first nine months of 2023 reached a decade-low of $2.1 trillion. This is despite the fact that Exxon's revenue for the last twelve months was reported at 367.98B USD, with a growth of 3.67%.

Among the key players in this landscape is Denver-based Petrie, headed by Tom Petrie. Petrie was once part of Petrie Parkman & Co. before being acquired by Merrill Lynch and later separated from Bank of America in 2011. Petrie has advised on over $250 billion in energy deals, including initiatives for Saudi Arabia, the State of Alaska, and the U.S. Department of Energy. Key personnel at Petrie include Andrew Rapp, Mike Bock, and Jon Hughes.

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InvestingPro Tips also highlights that Exxon has a perfect Piotroski Score of 9, indicating strong financial health and profitability. This is further echoed by the fact that 11 analysts have revised their earnings upwards for the upcoming period. For more insights like these, readers can explore InvestingPro's subscription plans which offer a plethora of additional tips.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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