Exxon (XOM) stock is off highs ahead of Q3 earnings on Oct. 27. Investors are excited about Exxon's recent bid for Pioneer Natural Resources (PXD) which should produce a powerful free cash flow generator.
On Oct. 11 Exxon announced it had entered an agreement for an all-stock deal to buy all the shares of Pioneer. The exact deal is this: every PXD shareholder will receive 2.3234 shares of XOM common stock when the deal closes. It is foreseen to close sometime in the first half of 2024, assuming the Biden Administration approves the deal.Pioneer is a large oil shale producer in the Midland Basin region of Texas and Oklahoma. The deal is worth about $57.2 billion. This is based on the 233.14 million shares PXD shares outstanding at the end of July and today's price of $245.28 PXD price. However, there may be more shares outstanding as of Oct. 11., so its possible it is closer to $60 billion.
