that was in the permian basin. this is different. an all-stock deal. the cash they're keeping around, a lot goes back to shareholders. this should be accretive to cash flow in 2025. they think it will double by 2027. the cash back to shareholders will be done e done through share buybacks, increasing that to $20 billion. and the dividend per share, which they've been raising by about 6% annually, they'll raise it by 8% this january, so $1.63 a share. talked about guyana saying they don't think they need to expand when it comes to the permian basin because they have a lot of acreage there, more than exxonmobil and pioneer combined. but they've been talking to hess for over six months. this has been going on for a long time. we'll keep an eye on it. but hess shares are down. >> it should be one -- i mean, it's one for one basically. 1.025. chevron is going down $3 or $4. it's one for one stock. if you were a hess shareholder -- now it's up a little built, but if you were expecting a big premium from takeover, it didn't happen. i love t

the permian basin established as a low cost and low carbon supply basin for the world. a lot of players in the permian basin and consolidation makes sense to lower the cost of production. >> what happens? we spoke with exxonmobil's ceo and pioneer's ceo earlier this week. darren woods thinks they will be able to get this out of the ground in the permian basin at $35 a barrel once this deal goes through. they have other things to make it cheaper with the technology. what does this mean? that's a good number. what does that mean for the other big players? what do they have to do at this point? >> if you look back at history with the majors like bp and shell and exxon and chevron, they were skeptical of shale early on. shale development was a short cycle. they were focused on deep water and long-term projects. in the meantime, early adopters of pioneer with shale and devon and eog were building land positions in the permian. those companies now own some of the best agec acres in the worl. now shell and recchevron have access. pioneer was the corner lot in the best neighbor

it will make exxon by far the biggest player in the permian basin. here's what the ceos of both companies told us starting with the pioneer ceo. guest: you have to become a diversified company. the question is do we do it ourselves or become part of a company like exxon mobil? i think exxon has the best stock of any of the diversified companies, the best growth opportunities and for this transaction, shall companies cannot survive on their own long term. they will have to merge up and become part of diversified companies is my general opinion and this should happen over the next five years. >> will it be like private guys getting together or what you did reaching for exxon that has a huge reach all across the globe? guest: as you know, there are only two parts to diversify in the majors. conocophillips versa fight and ox eat diversified. shell companies were have to do it on their own or merge into one of the diversified companies. that's my general opinion. >> does this merge or change any investment decisions that you will make for stuff out of sha

but together these two would make up about 15% of the production in the permian basin. king about half the production. exxon says it intends to leverage its permian greenhouse gas reduction plans to accelerate pioneer's net zero emissions plan by 15 years to 2035 from 2050. the deal is expected to close in the first half of 2024 and if you look through, they think that they can do even more in terms of production because exxon does have technologies, they call them proprietary technologies, they think they can get more out of the ground. they point to the expertise that pioneer natural has in the permian basin because they have been the biggest and the earliest for a very long time. so they say between the two of them, they will be able to really get a lot more out of the ground, even on the wells that are there. it is a huge stake of land. the land tends to be pretty contiguous, close to each other between the two. they also say it will be easy for them to ramp up some of the efficiencies, with the work they would be doing on the two different parcels of things. exxon s

and take a look at pioneer's peers in the permian basin like devon energy, occidental, they're all up report. stuart: think about that, exxon's got $30 billion cash, apple's got $200 billion -- lauren: okay, when you put it like that. stuart: isn't that that something? amc, oh, or this is about taylor swift. lauren: yeah. the movie about her concerts is, like, selling out like it's, you know, "star wars" franchise. stuart: guaranteed. lauren: $100 million in preticket sales. it opens one week from today. do your daughters have their tickets, brian? >> they don't have their tickets, but they were asking me last night, i like travis kelsey, but you don't even know what the nfl is. [laughter] stuart coming up, president biden backtracking on building a border wall. he claims the white house had no choice. watch this. >> the border wall money was appropriated for the border wall with. i tried to get them to reappropriate, to redirect that money. they didn't, they wouldn't. >> reporter: do you think the border wall works? >> no. stuart: lucas tomlinson at the white house breaking down the

in terms of the broader take, just the amount of oil they expect to get out of the permian basin and how much reserves they think are there now because of the technology is totally mind blowing. it changes the game when it comes to geopolitics and offsetting oil price volatility. they are not questioning how they get there but if they get the new technology, that will be tremendous. jon: you mentioned the analysts but when it comes to the chemicals business in the short term. longer-term story is pretty set right now. what will people be watching for? alix: it's a demand story and we asked him that as well. there is a lot of weakness in chemical straight up and that usually a product demand story. his take was that supply was ok. he says the demand has to pick up and work its way through. he's optimistic that will happen but this is a straight up cyclical business. chevron is getting hit hard. six straight days of losses on the stock and part of that is the cyclical part of the business and the other when they are dealing with his cost overruns on certain projects with issues with co

this gives exxon an incredible amount of flex ability in the permian basin.3, trending premarket at 243. pine europe by 2.3%. let's talk about the price action elsewhere on the s&p 500, equities up as follows on the s&p, three winning streak on the s&p, looking to make it four. up 131%. heels lower, on friday, cycle highs pushing 5%. here we are sitting wednesday, 455 .82. jonathan: how do you -- lisa: how do you create financing based on that level of volatility? we get the latest in real economic data that might serve as some sort of linchpin of a more concrete view, september ppi coming out. the expectation is for some disinflation, will it be enough to create a calm background for that auction of 10-year note's that will be a test of just how much demand there is in the market today. fez speakers lineup, maybe they will point to the bond market and say check out what they have to say because we cannot a slain a better than that. chris weller and rafael bostic, susan collins and 2:00 p.m., in case you want more information from the fed, we get fomc minutes

the permian basin is where a lot of people have been focusing on a slightly smaller scale, matador. now that chevron and exxon have both done two transactions this year, so they're presumably off the table a bit. conoco has moved from being an acquired to an acquirer. so a lot to watch, a lot of activity >> so look for totale in europe, and conoco in the u.s. as acquirers? >> yes, those are the two biggest ones that could acquire a large-cap u.s. company also, there could be smaller moves as well. >> i'm sure it's not -- maybe in some cases, piece by piece, but overall it's there is there a takeover premium being put in there on the hopes or expectations that maybe they're the next target? >> the one thing about that is all-stock purchases. that's kind of the executive thing, we're not sure about what the oil and gad environment looks like so all stock deals could make more sense at least the shareholders of the former company can participate in the up side >>> thank you, pippa bertha coombs has the news update. >>> two senior law enforcement officials tell nbc news that the weapon

. >> a lot of talk about the permian basin. the highest producing oilfields in the united states. give us a sense how that influences the possible m&a deal. >> the likely target means you have to have a willing seller. in the case of pioneer and hess, you have ceos near retirement on companies they built and run for decades. i think the basin has consolidated into the hands of a few companies. namely oxy and chevron and conocophillips and exxonmobil. there are other bigger players out there like eog resources which is diversified. >> a lot of possibilities, peter, is there one in your mind that is likely going forward? >> these deals are hard to put together. i'm not sure i can say one single company can agree to the price. i think it is less likely you get someone selling. >> all right. peter mcnally, thank you. i appreciate the time. >>> coming up on "worldwide exchange," energy deal making may be red hot, but david solomon says the good times start and end in texas. comments from ldn'gomas ceo coming up right after this. but if it's using untrusted data can you trust the result

another one we like, pioneer, one of the largest producers in the permian basin, really attractive stockks, lot of free cash flow returning that in the form of a dividend and this variable dividend component and investors will see a higher dividend this quarter because of a higher oil price. >> and i am hearing you say loud and clear that even though they are high, these dividends are safe, yes? she? ab >> yes, they're actually going to grow. >> all right, rob, thank you very much. rob thummel, appreciate it. >>> we will power through as many more stories tofhe day as we can. it's closing time after a quick it's closing time after a quick break. like doors opening wherever i go... [sound of airplane overhead] even the ground is moving for me! y'all seeing this? wild! and i don't even have to activate anything. oooooohhh... automatic sashimi! earn cash back that automatically adjusts to how you spend with the citi custom cash® card. [mind blown explosion noise] ♪ ♪ every day, businesses everywhere are asking: is it possible? with comcast business... it is. is it possible to help keep our

occidental petroleum or diamondback energy or the few remaining independents that are producing in the permian basinhevron is good because has has a lot of production and north dakota in the gulf of mexico and in going to which is proven to be a big bonanza as far as oil production and these are locations where the political climate is quite steady for investors. ashley: is a reaction to the biden administration policy going green and making a harder for these companies to go about their business making it a lot more expensive. is that part of the deal because of the policies of the administration, to your point it's cheaper to buy someone else and do it yourself. >> i certainly think the biden administration is making more difficult for the oil industry to get more crude oil and natural gas out of the ground, you can see this from the policies and announcements that they made sense 2021 which is restricted the amount of federal lands available for leasing not only in alaska but the gulf of mexico and the amount of litigation that is followed from those announcements. if you're an oil company advoca

in the permian basin, that's where everyone wants to be.r is an incredibly attractive asset, a phenomenal management team. scott sheffield is retiring, but since 1970 he's done a remarkable job. he is the one who's created all this production in the basin itself. of course, this is a fantastic deal. if it happens, it's incredibly beneficial to exxon. it speaks towards the strong fundamentals of the environment overall. >> josh, do you get rid of the ieo here or stay with it? >> no. this is a head fake. it actually makes no sense. crude oil peaked september 27th. oil is down 12% since then. the xl section e is down. ieo has been holding up better than the majors. exxon is off 12% during that same period of time. now, only 9% of the names -- let's look at the big ones. in the xle, only 9% of the components of that index are above the 50-day moving average, which means almost every stop has broken down on the short-term basis. that reading was above 40% as recently as mid-june, and that's when wti crude was trading in a range between, like, 67

so now you have four big oil companies controlling most of the permian basin. huh.erground lake of oil. lauren yeah. what's the ftc going to say about that? probably nothing. because of the massive drawdown in u.s. drilling, these companies can say, well, we're just a small part of world oil production, and that's the sad reality. if. [laughter] stuart: it sure is. one her many. walgreens, just -- one more. walgreens just appointed a new ceo. it's been a tough year for them. the stock goes up. lauren: yeah. up 5.25. shares are down 40% this year. walgreens is closing stores, cutting jobs, the pharmacists are unhappy, some of them walking out. now a huh correction. a new ceo, tim wentworth with, he replaces rosalynn brewer. comes from cigna, express scripts, and walgreens is pushing deeper into health care, so i guess that marriage is favorable. stuart: and what's he going to do about shrink shrinkage? lauren: i was reading a story the other day, or when you check yourself out at the self checkout, it's still easy to steal, it really is. a lot of stores are noticing

the best outin the permian basin.in synergies by the second year, even better by joining forces they'll produce 150,000 more barrels per day than they could do separately. that's what a merger's supposed to be about. winners on all sides. and yet you know what i heard instantly from a lot of people who follow mergers, the federal trade commissioner, lina khan, will try to block it. i don't know if that's true. but given the ftc's recent track record of making specious arguments to block large deals i could see them going there. maybe they'll hold pioneer is such an important supplier for gas stations that the buying entity is going to foreclose its rivals for its own economic benefit to consumers' detriment? which is the argument the ftc used when they tried to block microsoft's takeover of activision. they claimed it would enclosing competition. maybe the ftc will say there will be less competition because drillers won't want to work for the combined entity for some reason. maybe bundling clauss also known as synergi

has a nice setup, but we prefer the shorter term, the higher returns of the permian basin, so we prefer the exxon deal. >> you think they got a good price on it? >> they got a good, great price. again, same thing. pioneer stock had done pretty well in the last year. as well, outperforming some of the majors. you know, what this does, again, i think not a surprise maybe that both of these had to add some assets. i think what this is going to do is put more pressure on other companies, the likes of conoco or emg to match that and buy some things themselves. >> that's what i'm curious about. if we see energy consolidation continue, who else is implied? does it start to raise equity prices across the board on hopes for some takeover premium or have the opposite effect? how does this all shake out and where does it leave producers and consumers at the end of the day? six, 12 months from now, is u.s. output at new record highs? >> no, i mean, in fact, maybe just opposite of what we have seen in the last deals on these is when one plus one, a lot of times they don't necessarily from an activit

major player in all of the permian basin. is reporting that exxon wants to buy it for a 20% premium. this is a $60 billion deal, biggest deal for exxon since 1998-99. i'm not shocked by this. there's been talk of tie-ups for months because the drillers are having their financial backing pulled are them because of esg. 40 no one wants to touch it. and exxon is sitting on all this cash, and they don't want to invest it into the ground because of esg, so why not tie up with someone when has proven resources? stuart: why not. lauren: spending the money instead of trying to find your own. stuart: you've got all this cash, why not? thanks, lauren. >>> coming up, the liberal media crying over wealthy college grads who have are to pay back student loans. they don't want them to dip into their fun budget and cut back on things like travel, concerts, even a spa days. what a story. [laughter] we've got it, of course. and mr. rogers said it best, remember him? old roll tape. ♪ boys are boys from the beginning. ♪ girls are girls right fro

the move would cement composition as the permian basin's dominant oil producer by far.ill step down next year as part of a board room cleanout. he will retire before the and -- annual meeting in may 2024. his fellow directors will retire after the happy results in february. qantas is looking to bring in fresh faces to repair its battered reputation. the results of an independent review on major governance issues will be released in the second quarter of 2024. lvmh shares in the u.s. down after it was reported that sales in the third quarter grew slower than expected. organic revenue and its fashion and leather goods rose 9%, short of the wall street expectation of more than 11%. sales on wines and spirits fell 14%, much worse than estimates. asia sales, excluding japan, drew 11%, while short of estimates, a sign that china might be losing steam. shares of pepsico have rallied as they raise their earnings forecast following better-than-expected quarterly results. the company says that consumers have so far absorb higher prices on snacks and beverages. the cfo says that t

we have so many resources in places like the marcellus shale, permian basin and these different thingsthat will lower your gas prices. our target is to dollar gas again. the only way you do that is by producing more. we want to use federal lands in alaska and pipelines and we will do all of that, that will be a day one thing and part of it is because it's important for people's pocketbooks. it affects everything that goes into the economy. it affects all the power all the goods and services provided to this country. it will be good for jobs and good for our industrial base but also good for our national security. when we are the dominant energy producer, that hurts russia and iran and china area when we go with bidens green new deal, it kneecaps our energy production. it weakens us against china, iran and russia. it's a no-brainer to be able to do that so we will do that day one and turn it on. it will make a big difference and we will be aggressive at permitting and the things we need to do to overcome the bureaucracy. that will make a big difference for everyone. i look at congress a

it produces exclusively in the permian basin. wall street journal that exxon mobil is nearing a deal to buy the company for $60 million and the deal could be sealed in the coming days. what you, on daybreak asia. this is bloomberg. ♪ >> the u.s. and china are said to be moving closer to setting up a meeting between president joe biden and xi jinping at the next apec summit in california. the asian government management -- managing editor joins us in hong kong, we have seen more of these high-profile meetings between the two sides. what are we inspecting from a summit? -- expecting from a summit? >> whether or not it will take place is a main question, and we see signs of that with the u.s. preparing for that, china has not confirmed that it's meeting will actually happen, xi jinping skipped the g20 just last month. he indicated he has not traveled much at all. he went to moscow and south africa. if he said -- he shows up, that would be a big deal, showing that the u.s. and china relations are heading in a better direction. as far

tom: we are going to see the potential merger in the permian basin.go away. james lucier. this will be a two-hour conversation but we have to back it up to an half hour conversation. how did we get to november 17 this leaderless? james: there is nothing to look for but is shut down. there are two candidates for speaker in the house and neither is close to locking up the boat. it is a good chance neither will lock up the votes in the speaker race will take a while to sort out. while they are sorting this out, the house will be paralyzed on everything with continuing resolution or ukraine or any topic. tom: if they are paralyzed, what is the impact on the president of the united states? james: he is just fine in full command of his executive powers. he can do as he likes. the issue is not that the house is not meeting but without a functional speaker, you cannot bring legislation to the floor. and without someone who was an elected leader of the republicans, they cannot change bills. the u.s. government is working fine but anything that requires this fr

if it was not the permian basin, it was not just shale, what are you looking for in terms of the transactions be left. maybe bp or tou thao. -- or total. shell is trying to pivot to oil and gas. i do not know who will be there to buy a transformative deal. conoco is already doing their deal. i don't know if it will be another pressure. tom: how much pressure -- lisa: how much pressure is on opec-plus not to do some of this ? alix: you could argue the u.s. is already producing over 13 million barrels a day, so they produce more than saudi arabia. it is about monetizing the assets in the ground today because in 24 years -- that is what saudi arabia is trying to do, keep the prices at certain level. spare capacity is worth more. manus: the cost of production is like down here. lisa: you cannot -- alix: you cannot really compare. the fiscal breakeven is quite high, which obviously chevron does not care about. manus: they don't care, but it is about who in europe. this is the american m&a landscape. what happens with equinor? what happens with european producers? tom: i want to cut to the chase. y

resources and strong innovative spirit that encapsulate the caring thermometer my district, the permian basin, which produces over 40% of the cou country's oil production. while climate aarmist scream oil and gas is bad, i feel confident in saying that if they were serious and actually reducing carbon emissions we would produce it here where we do it cleaner, bert, more efficient, higher labor standards than anywhere else. don't export that to our adversaries. unfortunately this administration has done just that and they would rather look to our adversaries for energy than embrace the innovation being done right here at home. and looking to supply the energy needs for americans, i respectfully ask the president call mater the midland, texas, not opec, for the energy needs. at a time when our world is increasingly destabilized, our nation needs us to lead from front. our domestic energy production is too important of an asset to be left out of our national security tool kit. and we must use this unique asset not only for the benefit here domestically but around the world. l.n.g., 10% worldwide

significantly in the permian and mid midland basin, really the saudi arabia of our country. >> that'sour world. there's a time value of money. there's whether the ftc is -- >> people are thinking six months, maybe a little bit more. there is not a belief that this is going to get a serious antitrust review. perhaps it does get a second request, but as the gentleman said earlier on "squawk box," they're 15% of oil coming out of permian, less than 8% total for the country. you would anticipate that would not necessarily bring significant antitrust scrutiny. maybe scrutiny but not -- and you know, exxonmobil is a pretty important company and if they can continue to bring the price down, that conceivably is something that would be good for consumers. >> i think the world of exxon. i think the danbury deal is good. you know why we bought the stock? let me be very clear about this. because of mr. sheffield. we won't have mr. sheffield. >> he'll be on the board. >> look, sheffield's fantastic. i want sheffield. probably isn't someone who's good as sheffield, but i have to do that because my