Exxon Mobil Corp has held preliminary talks with Pioneer Natural Resources Co about a possible acquisition of the U.S. fracking company, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Discussions between the two companies about a potential deal have been informal, the newspaper said, adding that Exxon executives have discussed a potential tie-up with at least one other company.
Exxon on Tuesday signaled that its first-quarter operating profits dropped about 25% from last year’s record levels as oil and gas prices eased.
Pioneer earlier this year denied a media report that it was considering an acquisition of smaller U.S. rival Range Resources Corp.
Exxon declined to comment on the report. Pioneer did not immediately respond to Reuters’ requests for comment.
(Reporting by Shivani Tanna and Jaiveer Shekhawat in Bengaluru, Editing by Rosalba O’Brien and Bill Berkrot)