Pioneer Natural Resources Co. remains in “no comment” mode on whether it is in discussions with Exxon Mobil Corp. on a potential blockbuster merger, CEO Scott Sheffield said. (Source: Shutterstock)
Pioneer Natural Resources Co. remains in “no comment” mode on whether it is in discussions with Exxon Mobil Corp. on a potential blockbuster merger, CEO Scott Sheffield said.
Sheffield was asked during this morning’s earnings call about why it did comment on a rumor that it was looking at buying Range Resources Corp. but hasn’t commented on the ExxonMobil rumor.
“We saw our stock get down to $180 [on the Range news],” Sheffield replied. “That’s the only reason we went away from ‘no comment.’”
Range is an Appalachia gas producer, while Pioneer is fully focused on Permian Basin oil. Its stock fell from $233 to $180 upon Bloomberg News’ report of the Range rumor in February.
The Wall Street Journal reported in early April that ExxonMobil is talking to Pioneer about a deal.
RELATED: Analysts: Pioneer Megamerger Could Cost Exxon Mobil $70 Billion
Doug Leggate, an analyst with Bank of America, said in the earnings call, “Your pattern has been not to comment on market speculation, but you did with Range. You broke the precedent.
“The language in that press release was very specific. It said, ‘We are not contemplating a significant business combination.’ Should we assume from that then that it would preclude any discussion with Exxon Mobil?”
Sheffield said that the Range comment was an exception. “You're going to see us always use that ‘no comment’ like every other company does in every other industry.”
RELATED: Pioneer’s Scott Sheffield to Retire
As for any other speculation, “and as I said before, the board will always do what's in the best interest for shareholders,” he concluded.
Leggate asked, then, if Pioneer is or isn’t in merger discussions with a “larger company.”
Sheffield said, “I’ve already answered that question, Doug.”
Recommended Reading
Equigas, CO2Meter to Partner in Offering Gaslab Detection Devices
2025-02-14 - The devices are used in industrial operations to monitor gas leaks and maintain air quality and safety compliance.
Antero Stock Up 90% YoY as NatGas, NGL Markets Improve
2025-02-14 - As the outlook for U.S. natural gas improves, investors are hot on gas-weighted stocks—in particular, Appalachia’s Antero Resources.
Trump’s DOE Issues First LNG Permit of Term to Commonwealth LNG
2025-02-14 - The former administration of President Joe Biden had halted permitting for all of 2024.
Type One Energy, Private Equity Firm Partner to Advance Fusion Energy
2025-02-14 - The partnership between Pine Island New Energy Partners and Type One Energy focuses on identifying and evaluating fusion industry supplier chain companies to grow the sector.
Enbridge CEO: Tariffs Not a Concern but Present Chance for Reform in Canada
2025-02-14 - Enbridge’s CEO Greg Ebel says the company doesn’t see a major effect on its business with such a “hard-wired” system.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.