Truist is finding a number of positives in Exxon Mobil 's deal to buy Pioneer Natural Resources .
"While we forecast moderate near-term incremental earnings/cash flow from Exxon acquiring Pioneer (PXD, Hold), we anticipate more pronounced longer-term benefits in '25+ given the notably more productive proforma US inventory," he wrote.
Exxon Mobil announced on Wednesday that it agreed to buy Pioneer Natural Resources at $253 per share in an all-stock deal, or $59.5 billion.
Despite the recent share performance, the Wall Street firm sees more upside ahead for Exxon Mobil, upping its price to $131 from $110 a share.
XOM 1M mountain Exxon Mobil shares over the last month Dingmann also expects the Pioneer acquisition — and ongoing operating improvements — to keep Exxon Mobil the path toward accomplishing its $9 billion cost savings plans, while leading to new cost tightening over the longer term.
Persons:
Neal Dingmann, Dingmann, Michael Bloom
Organizations:
Exxon Mobil, Natural Resources, Exxon, Pioneer, Mobil