U.S Shale Companies Turn to M&A’s As U.S-Poland Ink $18 Billion Nuclear Deal

Mergers and acquisitions are increasingly reshaping the embattled U.S energy industry. The U.S shale oil industry has seen the most number of deals as companies continue to explore ways of staying afloat on fundamentals in the industry taking a beating.


Pioneer Natural Resources Co (NYSE:PXD) is the latest company to ink a deal to acquire Parsley Energy Inc. (NYSE:PE) as part of a $4.5 billion stock deal. The merger will result in one of the largest oil producers in the Permian Basin. The deal comes just days after ConocoPhillips (NYSE:COP) confirmed plans to acquire Concho Resources Inc. (NYSE:CXO) for $9.7 billion. Chevron Corporation (NYSE:CVX) has already completed the takeover of Noble Energy, WPX Energy having merged with Devon Energy.

The mergers and acquisitions affirm the growing belief that oil and gas companies must be big enough to survive the pandemic era where demand has slowed while supply has continued to suppress prices. The consolidation is also part of an effort that seeks to address massive debts that came into play as a result of years of breakneck expansion.

Tanking Oil Prices

Companies are resorting mergers and acquisition in a bid to shrug off the effects of record low oil prices. Oil price have struggled to stabilize above the $40 a barrel level given the subdued demand. OPEC meeting has already ended without members agreeing on new output cuts.

Oil prices continue to edge lower amid increasing risk of a second wave of coronavirus infections. Pilling pressure on oil prices is disappointing economic data out of China as well as additional lockdown measures in China as coronavirus infections continue to rise. The growing risk of OPEC members ramping up production early next year also continues to pile pressure on oil prices.

U.S-Poland Nuclear Power Deal

Amid the woes in the oil industry, the U.S and Poland have struck an $18 billion nuclear power technology deal. Under the terms of the agreement, U.S companies are to build six reactors in the European nation that are to last more than 100 years.

By reading our website you agree to the terms of our disclaimer, which are subject to change at any time. Owners and affiliates are not registered or licensed in any jurisdiction whatsoever to provide financial advice or anything of an advisory nature. Always do your own research and/or consult with an investment professional before investing. Low priced stocks are speculative and carry a high degree of risk, so only invest what you can afford to lose. By using our service you agree not to hold us, our editor’s, owners, or staff liable for any damages, financial or otherwise, that may occur due to any action you may take based on the information contained within our newsletters, website, twitter, Facebook or chat. We do not advise any reader to take any specific action. Our releases are for informational and educational purposes only. Never invest purely based on our articles. Gains mentioned on our website, twitter, Facebook, and on our website may be based on EOD or intraday data. We may be compensated for the production, release, and awareness of this article. We will disclose any and all compensation on the article page. This publication and its owner never hold positions in the securities mentioned in our articles. Our information may contain Forward-Looking Statements, which are not guaranteed to materialize due to a variety of factors. We do not guarantee the timeliness, accuracy, or completeness of the information on our site. The information in our disclaimers is subject to change at any time without notice. We are not held liable or responsible for the information in press releases issued by the companies discussed in these write-ups. Please do your own due diligence