As far back as 2017, rumors of Exxon Mobil (NYSE:XOM) acquiring Permian shale giant Pioneer Natural Resources (NYSE:PXD) have constantly circulated. However, following a Wall Street Journal report on Thursday about a potential acquisition deal worth $60 billion, many believe this may be the time. CNBC’s David Faber, weighing in on the discussion and citing people familiar with the development, said the offer “could contain a good deal of stock and that Exxon will maintain price discipline.”
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Should the deal go through, it will be the biggest acquisition by Exxon since 1999, when it took over Mobil. Meanwhile, the potential deal comes on the heels of a buyout spree by the two companies in recent months. ExxonMobil, in July, acquired midstream company Denbury for $4.9 billion for its suite of CO2 pipelines and other CO2-related assets.
“No deal as yet from Exxon, but we do expect those talks or potential deal still continues,” Faber said. Since the speculations hit mainstream attention, the two companies have seen positive reactions from the market, recording significant gains in their share prices since Friday.
What is the Prediction for Exxon Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on XOM stock based on eight Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $126.20 per share implies a 13.63% upside potential.
