One of the biggest stories that emerged over the holiday weekend was that energy conglomerate Exxon Mobil Corp. (NYSE: XOM) is reportedly in talks to acquire Permian shale drilling giant Pioneer Natural Resources Co. (NYSE: PXD). If it comes to pass, the purchase of Pioneer, which has a market capitalization near $49 billion, would be the company’s biggest deal since the merger with Mobil in 1999.
With a huge vault of cash, and looking to increase production, Exxon purchasing Pioneer would not only make the proverbial rich get richer, but it would greatly expand the mega-integrated leader’s footprint in the Permian Basin, which has among the largest cache of resources in the world. In addition, it could spark a wave of additional mergers and acquisitions as competitors try to keep up with Exxon.
We screened our 24/7 Wall St. energy exploration and production universe looking for additional companies that could be the target of some of Exxon’s biggest competitors, like Chevron and ConocoPhillips. Five top companies hit our screens, and all are rated Buy and pay solid dividends like Pioneer does.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This company was long considered an industry leader when it was known as Apache, and the stock is perhaps offering one of the best entry points in the sector. APA Corp. (NYSE: APA) explores for and produces oil and gas properties. It has operations in the United States, Egypt and the United Kingdom, as well as has exploration activities offshore Suriname. It also operates gathering, processing and transmission assets in West Texas, as well as holds ownership in four Permian-to-Gulf Coast pipelines.
APA is one of the largest U.S. exploration and production companies, with 2.3 billion barrels of oil equivalent of proven reserves (63% liquids). It is an explorer, acquirer and exploiter, and a fiscally conservative company that has grown its reserves and production consistently via acquisitions and organic projects.
Shareholders receive a 2.63% dividend. Truist Financial has a $51 price target for APA stock, and the consensus target is $48.96. Shares closed almost 3% higher on Monday at $39.09.
This company was formed by the closing of the $17 billion merger of Cabot Oil & Gas and Cimarex Energy in 2021. Coterra Energy Inc. (NASDAQ: CTRA) is an independent oil and gas company engaged in the development, exploration and production of oil, natural gas and natural gas liquids (NGLs) in the United States. It primarily focuses on the Marcellus Shale, with approximately 177,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania.
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