Pioneer Natural falls after fourth multi-billion shale deal of the year By Reuters – Investing.com

SourceInvesting.com
SectorEconomy
CountryMiddle east

© Reuters. FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County (Reuters) -Shares of Pioneer Natural Resources (NYSE:) declined more than 6% as the U.S. oil producer's $6.4 billion acquisition of rival DoublePoint Energy months after a large deal took investors by surprise, with the sector still recovering from last year's crash. Pioneer's fourth multi-billion shale deal this year comes as investors in the shale patch have called on producers to focus on cash flow and shareholder returns, rather than spending to grow, as demand remains low due to the COVID-19 pandemic.

In January, Pioneer closed its $4.5 billion, all-stock purchase of Parsley Energy (NYSE:), giving it one of the largest positions in the Permian Basin, the top U.S. shale field. RBC Capital Markets said it was surprised Pioneer made such a large acquisition after Parsley Energy and that the rationale seemed to be part opportunistic and ...read more...