Pioneer Natural Resources (PXD) is an oil stock worth owning on its own merits. But a fresh report that Exxon Mobil (XOM) could acquire the Club holding would likely unlock even more value. Exxon has held “informal” talks about buying Pioneer, The Wall Street Journal reported Friday, citing people familiar with the matter. Any potential deal would not transpire until later this year or in 2024, the Journal reported. Exxon — which generated $62 billion in free cash flow in 2022 and ended the year with nearly $30 billion in cash — has held acquisition discussions with at least one other oil-and-gas firm, according to the Journal. Pioneer shares jumped more than 6% Monday, to around $221 each — making it by far the best-performing energy stock in the S & P 500 . Shares of Exxon fell by by 0.25%, to just under $115 apiece. Pioneer and Exxon did not immediately respond to CNBC’s request for comment Monday. Exxon’s reported interest in Pioneer is hardly a surprise because the Texas shale driller is a “marquee” independent exploration-and-production company in the lower 48 states, Stifel analyst Derrick Whitfield told the CNBC Monday. If Exxon wants to meaningfully bolster its rig count in the Permian Basin, it’s “going to need quality depth of inventory,” which Pioneer has, Whitfield said. The analyst, who has a buy rating and $286 per share price target on PXD, said the likelihood of a Pioneer-Exxon deal comes down to how much Exxon is willing to pay. “I think management would want to … improve performance of their asset base and arguably have a higher stock price before coming to the table with Exxon Mobil,” Whitfield said. “That’s not to say if Exxon Mobil offered a 25% premium, it wouldn’t be done. Personally, that was the number I had pegged in my mind. If you saw a 25% premium, I think that would bring them to the table because, let’s be realistic, every independent wants to be acquired by Exxon Mobil.” The Club believes it may take a bit more for Pioneer to seriously consider selling. A 25% premium from where Pioneer closed Thursday, at roughly $208 per share, would value shares at around $260 each. However, Jim Cramer said Monday he thinks Pioneer CEO Scott Sheffield — an industry veteran in his second stint leading the company — would hesitate to sell at a per-share price below $285. That’s Pioneer stock’s all-time closing high, reached in June 2022. “I am not saying he wouldn’t sell. I am saying that he’s not going to sell below where this stock was, given the fact oil could be going back to $90 [a barrel], given the fact that he’s got the best Permian assets,” he added. West Texas Intermediate crude — the U.S. oil benchmark — was trading down more than 1% Monday afternoon, at $79.70 a barrel. We were content with our Pioneer investment prior to Exxon’s reported interest in the company, adding to our PXD stake twice last month at lower levels than Monday’s market price. Our most recent purchase of 25 shares on March 20 came at roughly $185 each. Pioneer’s attractiveness stems in large part from its quality acreage and low oil price breakevens, at roughly $39 per barrel. That enables the firm to generate hefty amounts of free cash flow and return most of it to shareholders through stock buybacks and quarterly dividends. Knowing that Exxon is reportedly on the prowl for an acquisition, investors may look at Pioneer and other Permian operators even more favorably. Stifel’s Whitfield believes the Journal story could put a near-term floor underneath Pioneer’s stock price — a view we share. At the very least, Pioneer’s shareholders may be more likely to remain invested in the company, Whitfield said. And that’s certainly our intention at this time. “What I suspect is it’s going to further firm the shareholder base because you now have an article that directly links Exxon Mobil to Pioneer, and the way it was set up, there is clearly an interest there,” Whitfield said. “I think if you’ve seen Pioneer at [a] much higher share price in the past, that gives you that much more conviction to hold onto it now.” (Jim Cramer’s Charitable Trust is long PXD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Permian Basin rigs in 2020, when U.S. crude oil production dropped by 3 million a day as Wall Street pressure forced cuts.
Paul Ratje | Afp | Getty Images
Pioneer Natural Resources (PXD) is an oil stock worth owning on its own merits. But a fresh report that Exxon Mobil (XOM) could acquire the Club holding would likely unlock even more value.
JiYue, a Chinese EV brand focused on delivering all-electric “robocars” to the masses, has unveiled its latest model, and it’s quite a deviation from its previous EVs—but in the best way. Earlier today, JiYue launched the ROBO X supercar, designed for high-speed racing. By high speed, we mean 0-100 km/h acceleration in under 1.9 seconds. My mouth is watering.
JiYue has only existed since 2021, when parent tech company Baidu announced it was expanding from software development into physical EV production, joining forces with multinational automotive manufacturer Geely.
The new “robotic EV” marque initially launched as JIDU with $300 million in startup capital before garnering an additional $400 million in Series A funding, led by Baidu, in January 2022.
In August 2023, Geely took on a larger role in JIDU alongside a greater financial stake as the brand reimagined itself as JiYue, inheriting the JIDU logo and its flagship model, the 01 ROBOCAR.
The 07 finally launched in China earlier this year with 545 miles of range. With an all-electric SUV and sedan on the market, JiYue has unveiled an exciting new entry in the form of a performance supercar called the ROBO X. Check it out:
JiYue’s new ROBO X EV is available for pre-order now
JiYue showcased its new ROBO X hypercar in front of the crowd at the 2024 Guangzhou Auto Show earlier today. Similar to previous models but with a unique spin, JiYue described the ROBO X as an AI smart-driving supercar that, for the first time, blends artificial intelligence and autonomous driving into a high-performance, race-ready EV.
When we say “high performance,” we mean a quad motor liquid-cooled drive system that can propel the ROBO X from 0 to 100 km/h (0 to 62 mph) in under 1.9 seconds. JiYue called the new ROBO X a “performance beast” with “the perfect balance of excellent aerodynamic performance and high downforce.” JiYue CEO Joe Xia was even bolder in his statements about the ROBO X:
For the next 20 years, the design of supercars will bear the shadow of Robo X. This is the best design in the history of Chinese automobiles today, and it is a landmark presence.
Fighter-style airflow ducts bolster the EV’s aerodynamics, efficiency, and overall posture. Per JiYue, the two-seater ROBO X is expected to deliver a maximum range of over 650 km (404 miles).
The new supercar features falcon-wing doors, a carbon fiber integrated frame, and a professional racing HALO safety system offering 360° of support. The interior features an AI smart cockpit with SIMO real-time feedback to give drivers an immersive racing experience.
Furthermore, JiYue said the vehicle will utilize parent company Baidu’s Apollo self-driving technology, which could make it the first electric supercar to apply pure-vision ADAS technology that enables track-level autonomous driving.
Following today’s unveiling of the ROBO X, JiYue has officially opened up pre-orders in China for RMB 49,999 ($6,915). That said, reservation holders will need to be patient as JiYue shared that it doesn’t expect to begin mass production of the ROBO X until 2027.
What do you think? Will people be talking about the ROBO X for the next 20 years?
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes the launch of the Lectric XPedition 2.0, Yamaha e-bikes pulling out of North America, LiveWire unveils an electric scooter concept, PNY readying its cargo e-scooters for pilot testing, Royal Enfield’s first electric motorcycle, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
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Crude oil futures were on pace Friday for loss for the week, as a supply gut and a strong dollar depresses the market.
U.S. crude oil is down more than 2% this week, while Brent has shed nearly 2%.
Here are Friday’s energy prices:
West Texas Intermediate December contract: $68.56 per barrel, down 14 cents, or 0.2%. Year to date, U.S. crude oil has shed about 4%.
Brent January contract: $72.36 per barrel, down 20 cents, or 0.28%. Year to date, the global benchmark has lost nearly 6%.
RBOB Gasoline December contract: $1.99 per gallon, up 0.46%. Year to date, gasoline has fallen more than 1%.
Natural Gas December contract: $2.70 per thousand cubic feet, down 2.98%. Year to date, gas has gained more than 4%.
The International Energy Agency has forecast a surplus of more than 1 million barrels per day in 2025 on robust production in the U.S. OPEC revised down its demand forecast for the fourth consecutive month as demand in China remains soft.
A strong dollar also hangs over the market, as the greenback has surged in the wake of President-elect Donald Trump’s election victory.