Pioneer Natural Resources Co. remains in “no comment” mode on whether it is in discussions with Exxon Mobil Corp. on a potential blockbuster merger, CEO Scott Sheffield said.
Sheffield was asked during this morning’s earnings call about why it did comment on a rumor that it was looking at buying Range Resources Corp. but hasn’t commented on the ExxonMobil rumor.
“We saw our stock get down to $180 [on the Range news],” Sheffield replied. “That’s the only reason we went away from ‘no comment.’”
Range is an Appalachia gas producer, while Pioneer is fully focused on Permian Basin oil. Its stock fell from $233 to $180 upon Bloomberg News’ report of the Range rumor in February.
The Wall Street Journal reported in early April that ExxonMobil is talking to Pioneer about a deal.
RELATED: Analysts: Pioneer Megamerger Could Cost Exxon Mobil $70 Billion
Doug Leggate, an analyst with Bank of America, said in the earnings call, “Your pattern has been not to comment on market speculation, but you did with Range. You broke the precedent.
“The language in that press release was very specific. It said, ‘We are not contemplating a significant business combination.’ Should we assume from that then that it would preclude any discussion with Exxon Mobil?”
Sheffield said that the Range comment was an exception. “You're going to see us always use that ‘no comment’ like every other company does in every other industry.”
RELATED: Pioneer’s Scott Sheffield to Retire
As for any other speculation, “and as I said before, the board will always do what's in the best interest for shareholders,” he concluded.
Leggate asked, then, if Pioneer is or isn’t in merger discussions with a “larger company.”
Sheffield said, “I’ve already answered that question, Doug.”
Recommended Reading
TGS Starts Up Multiclient Wind, Metaocean North Sea Campaign
2024-05-07 - TGS is utilizing two laser imaging and ranging buoys to receive detailed wind measurements and metaocean data, with the goal of supporting decision-making in wind lease rounds in the German Bright.
Spate of New Contracts Boosts TechnipFMC's Subsea Profits
2024-04-30 - TechnipFMC's operational profits are growing as the company heightened its focus on “quality” subsea orders, which earned $2.4 billion for the first quarter.
Message in a Bottle: Tracing Production from Zone to Wellhead
2024-04-30 - New tracers by RESMAN Energy Technology enable measurement while a well is still producing.
Defeating the ‘Four Horsemen’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production—and keep the cash flowing.
Tech Trends: AI Increasing Data Center Demand for Energy
2024-04-16 - In this month’s Tech Trends, new technologies equipped with artificial intelligence take the forefront, as they assist with safety and seismic fault detection. Also, independent contractor Stena Drilling begins upgrades for their Evolution drillship.