ExxonMobil is actively pursuing more mergers and acquisitions (M&A) across its business segments, with a sharp focus on value creation rather than volume.
“We’re continuing to keep a really close eye on the waterfront, see where the opportunities are, do a good job of understanding what that unique value creation opportunity looks like and then see if we can find something that we can then eventually land,” Darren Woods, Chairman and Chief Executive Officer, revealed during the company’s recent Q2 earnings call.
Woods stated that Exxon’s acquisition strategy is rooted in leveraging the company’s existing technology, scale, and operational expertise. “It’s kind of the one plus one has to equal three or more,” he said, referencing the company’s 2023 acquisition of Pioneer Natural Resources.
He pointed to synergies from that deal as a benchmark, noting, “We started off with US$2 billion, we announced we’re up to US$3 billion per year on average over the next ten years.” He said that the figure is likely to be revised upward in Exxon’s next corporate plan.
Woods noted that Exxon’s approach is not to “buy companies and then strip all the people out of them”, but rather to seek out strong talent and leadership. “The former CEO of Pioneer is now running all of our Permian business,” he said.
The company is seeking acquisitions that align with Exxon’s core values, particularly “an intense focus on safety and environmental care, a focus on efficiency and performance”.
Woods also made clear that Exxon’s M&A interest spans more than just upstream oil and gas. “We think there are opportunities out there and across all of our sectors frankly, not just in the upstream,” he said.
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He added, “We’re not really interested in buying volumes. We’re interested in building value.”
ExxonMobil currently has “a very active activity set” in identifying potential targets, and Woods described the process as “ongoing and long term”.
Exxon is the operator of Guyana’s Stabroek Block with a 45% stake. Chevron now owns 30% and CNOOC owns 25%.
