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Parsley Energy Gains on Possible Pioneer Natural Resources Tie-Up

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Another tie-up in the energy patch is potentially in the works.

Shares of Parsley Energy (PE) - Get Report jumped Tuesday on reports that rival Pioneer Natural Resources (PXD) - Get Report was in talks to buy the oil and gas producer as the pandemic-driven drop in energy prices continues to drive consolidation in the U.S. shale industry.

Citing people familiar with the discussions, the Financial Times reported that Pioneer and Parsley were negotiating an all-stock deal that would help them better weather the headwinds faced by producers due to low prices of crude.

A deal, which would create a significant Permian player with about $10 billion in combined revenue and production of more than 550,000 barrels of oil a day, could be reached within weeks, people close to the talks told the Financial Times.

A tie-up between the two producers would mark the fourth big deal on the U.S. oil patch since this year’s price crash sent the market into a tailspin, leaving oil and gas producers and refiners scrambling to staunch losses and cut costs.

ConocoPhillips (COP) - Get Report on Monday reached an agreement to acquire rival Concho Resources (CXO) - Get Report in an all-stock deal valued at $9.7 billion including debt. The deal is expected to close in the first quarter of 2021.

Energy giant Chevron (CVX) - Get Report in July said it would buy Noble Energy (NBL) - Get Report for $5 billion in stock in what at the time marked the biggest oil-patch tie-up since the coronavirus pandemic took hold.

Devon Energy (DVN) - Get Report last month agreed to take over rival WPX (WPX) - Get Report for $12 billion.

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