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BREAKINGVIEWS-US oil deals create big fish in vast ocean
Dow Jones Industrial Average -2.08%
Chevron Corporation +0.79% Pre
Hess Corporation +0.55% Pre
Exxon Mobil Corporation +2.55% Pre
S&P 500 INDEX -2.70%
Dow Jones Industrial Average DJI | 41911.71 | -2.08% |
Chevron Corporation CVX | 157.57 158.30 | +0.79% +0.46% Pre |
Hess Corporation HES | 148.24 148.74 | +0.55% +0.34% Pre |
Exxon Mobil Corporation XOM | 111.80 112.64 | +2.55% +0.75% Pre |
S&P 500 INDEX SPX | 5614.56 | -2.70% |
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
By Robert Cyran
NEW YORK, Oct 30 (Reuters Breakingviews) - Exxon’s $60 bln deal for Pioneer and Chevron’s $53 bln Hess offer will make the giants even bigger. But they will only have 12% of US petroleum production and 5% of global share. Success depends on higher commodity prices. Big Oil may not control as much as it wants.
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CONTEXT NEWS
On Oct. 11 Exxon said it had agreed to buy oil driller Pioneer Natural Resources in an all-stock deal for $59.5 billion, or $253 a share based on prices when the deal was announced.
Chevron said on Oct. 23 that it had agreed to acquire rival Hess for $53 billion in stock, worth $171 per share on the day the deal was announced.
(Editing by Lauren Silva Laughlin and Sharon Lam)
((For previous columns by the author, Reuters customers can click on CYRAN/
robert.cyran@thomsonreuters.com; Reuters Messaging: robert.cyran.thomsonreuters.com@reuters.net))
