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How do you see the Pioneer-Parsley deal shaking out?
Posted on 10/21/20 at 2:20 pm
Posted on 10/21/20 at 2:20 pm
quote:
Pioneer Natural Resources Co. said Tuesday it agreed to buy rival Parsley Energy Inc. for $4.5 billion in stock. Pioneer is run by Scott Sheffield while his son Bryan is Parsley’s founder and chairman.
quote:
Pioneer Chief Financial Officer Richard Dealy told analysts and investors on a conference call the two Sheffields were intentionally kept out of takeover talks, which were led by the lead independent directors of both companies.
“Given the related-party nature of it, this was a transaction that was managed independently, so Scott and Bryan were not involved,” Dealy said. “We very much made sure we had a robust process of them not being involved in the negotiations.”
bloomberg
2
Posted on 10/21/20 at 3:00 pm to castorinho
I don't see the upside for Pioneer on this. They weren't involved in the formal negotiation but no doubt this was driven originally by nepotism. I'm not entirely familiar with the M&A process, but surely Pioneer shareholders will vote this down?
Side note: Parsley's been cutting costs and laying off folks while Bryan built a mega house on Lake Austin. A real company man.
Side note: Parsley's been cutting costs and laying off folks while Bryan built a mega house on Lake Austin. A real company man.
This post was edited on 10/21/20 at 3:01 pm
Posted on 10/21/20 at 3:42 pm to Waterloo
quote:
I don't see the upside for Pioneer on this.
Agreed. I don't see where Pioneer gets stronger from this deal. I don't know much about Parsley except that they have Delaware acreage and bought Jagged Peak who's acreage wasn't very good. If Pioneer did want Delaware why not buy Oasis's or any of the other operators's assets that are going bankrupt?
I expect all the acquired companies staff to get laid off so $156 million on G&A savings yearly, not enough.
I honestly expected someone like XOM to make a play for Pioneer.
Posted on 10/21/20 at 5:26 pm to Waterloo
quote:
I don't see the upside for Pioneer on this.
Has nothing to do with upside for PXD. Have you ever done business in W TX?
quote:
Bryan built a mega house on Lake Austin.
If Parsley dissolved into thin air, Bryan could still build the lake mansion.
Bryan was a multi millionaire the minute he was born and will be until he dies. Parsley was a generational wealth gift.
Posted on 10/21/20 at 9:18 pm to GeauxGutsy
Agreed. This acquisition is a joke. Makes no sense for PXD. feel like poppa Sheffield is giving his son a first class ride with whatever major I.e. XOM acquires PXD
Posted on 10/21/20 at 10:12 pm to castorinho
quote:
How do you see the Pioneer-Parsley deal shaking out?
Lawsuits. The conflicts are outrageous. I want to see the fairness opinion on this incestuous deal. $4.5B on a market cap of 4.3-4.4B...single digit premium?? With the debt assumption it’s a terrible deal for pxd, too.
Posted on 10/21/20 at 10:13 pm to GeauxGutsy
quote:
Parsley was a generational wealth gift.
Good distillation of the deal.
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