Acquisition talks are underway between US oil drilling company Pioneer Natural Resources and its rival company Parsley Energy, Wall Street Journal reported on Tuesday, citing sources
MOSCOW (Pakistan Point News / Sputnik - 20th October, 2020) Acquisition talks are underway between US oil drilling company Pioneer Natural Resources and its rival company Parsley Energy, Wall Street Journal reported on Tuesday, citing sources.
According to the report, the two oil-and-gas companies � shale producers operating in the Permian Basin of US states of Texas and New Mexico � are engaged in talks on an all-stock deal that could be completed by the end of October.
Pioneer is already the largest acreage holder in the Permian Basin, and the acquisition of Parsley would provide it with additional production sites in the country's southwest.
The two companies have reportedly asked Texan regulators to consider cutting production in the state due to falling demand and oil prices, which were the consequence of the counter-coronavirus measures.
Pioneer Natural Resources was established in 1997 and Parsley Energy in 2008. As outlined in the report, Parsley Energy has a market value of about $4 billion and over $3 billion in debt. The market value of Pioneer Natural Resources is approximately $15 billion.
The news of a possible merger come on the heels of an announcement on Monday of ConocoPhillips, another US oil producer, buying its competitor Concho Resources for $9.7 billion. Last month Devon Energy agreed to a $2.6 billion merger with WPX Energy. In July one more oil company, Chevron, bought Noble Energy for around $5 billion.
