ExxonMobil Corporation is in discussions to acquire Pioneer Natural Resources (NYSE:PXD), marking what could be the oil giant's largest acquisition since its formation in 1999, according to multiple reports over the weekend.
With a market capitalisation of $50 billion, Pioneer is Texas' largest oil producer.
The acquisition would significantly expand ExxonMobil's operations in the Permian Basin, the most productive oilfield in the US, and strengthen its standing as a leading western oil company, a report in the Financial Times noted.
The move comes as ExxonMobil seeks to expand production, buoyed by strong profits from rising energy prices.
For Pioneer, the deal would signify the end of an era; the company was founded in 1997 and became Texas' largest oil producer after acquiring Parsley Energy and Double Point Energy in 2021 for a combined $11 billion.
The acquisition talks follow a trend of consolidation in the U.S. shale industry and come as Pioneer's long-standing CEO, Scott Sheffield, plans to retire in 2023.