Permian Peers See Boost in Pre-market Trading
Shares of Permian peers of Pioneer Natural Resources Co. (PXD) were experiencing an uptick in premarket trading on Friday following reports from The Wall Street Journal that Exxon Mobil Corp. (XOM) was nearing a deal to acquire a shale-drilling company at a premium of about 20%. This news has generated increased interest in other companies operating in the Permian region.
Occidental Petroleum Corp. (OXY)
Occidental Petroleum Corp.'s stock (OXY) rose by 0.8% ahead of the market opening.
Devon Energy Corp. (DVN)
Devon Energy Corp. (DVN) also saw a gain of 0.9% in their shares.
Diamondback Energy Inc. (FANG)
Diamondback Energy Inc.'s stock (FANG) climbed by 1.4%.
TD Cowen analyst David Deckelbaum mentioned that the possibility of an Exxon-Pioneer merger has been frequently discussed among investors and has recently been the subject of media speculation, particularly in April. Deckelbaum believes that these reports will gain legitimacy and expects the scarcity value to increase among large-scale Permian peers such as Diamondback, Occidental, and Devon.
Ahead of the market opening, Pioneer's stock surged by 10.4%, while Exxon shares dropped by 1.6%. Futures for the S&P 500 (ES00) increased by 0.19%.
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