Pioneer Natural Resources (NYSE:PXD) was up 10% in Friday’s early deals amid reports of an incoming takeover by Exxon Mobil Corporation (NYSE:XOM).
Exxon is looking at a $60 billion deal to buy Pioneer, the third-largest US shale producer, according to a Reuters report.
Talks were reported to be at an advanced stage, sources close to the matter told Reuters, confirming initial reports from the Wall Street Journal.
A deal is potentially possible within days, the people said.
Exxon, which in July completed its largest purchase for six years at just under $5 billion, has not made an acquisition this size since its 1998 mega-merger with Mobil.
Pioneer's shares have fallen over 20% from their all-time high in May/June last year to $214.96 at the last close, which gave the company a market cap of just over $50 billion.
In New York this morning, Pioneer stock was up $21.95 or 10.2% changing hands at $236.91.
Pioneer’s oil-producing properties in the low-cost US Permian basin across Texas and New Mexico put it only behind Chevron and ConocoPhillips (NYSE:COP) in terms of output.
If the negotiations conclude successfully, an agreement between Exxon and Pioneer could be reached in the coming days, the three sources said, asking not to be identified because the matter is confidential.
Exxon Mobil purchases in recent months have included Texas-based carbon capture operator Denbury for $4.9 billion, its largest acquisition in six years.
It has not needed to buy much else thanks to a spectacular streak of exploration successes which have seen it discover over 11 billion barrels of crude and develop the large-scale high-yield Liza field offshore Guyana, near which it has been pocketing more acreage recently.