BREAKINGVIEWS-US oil deals create big fish in vast ocean

Dow Jones Industrial Average +1.18%
Chevron Corporation -0.01%
Hess Corporation +0.77%
Exxon Mobil Corporation -0.09%
S&P 500 index +2.11%

Chevron Corporation

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155.43

-0.01%

Hess Corporation

HES

149.64

+0.77%

Exxon Mobil Corporation

XOM

104.76

-0.09%

Dow Jones Industrial Average

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+1.18%

S&P 500 index

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Robert Cyran

- 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.

Full view will be published shortly.

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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))

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