According to a report by The Deal’s Claire Poole, Exxon has not been faring so well. On Tuesday, several analysts said they preferred the stocks of Royal Dutch Shell and Chevron over Exxon, while another analyst went as far as to downgrade Exxon’s stock to underperform. As Exxon’s stock is down 17% to $80.74 from its 52 week high of $97.20 a year ago, an acquisition might do the company good. Anadarko Petroleum’s spurned deal to buy Apache last week have people thinking that Exxon may strike at either company, both of whom have positions in New Mexico’s Permian Basin. Occidental Petroleum has also been mentioned as a potential target, as it is the largest operator and producer in the Permian, accounting for 13% of the oil produced there. But the company also has a big chemicals division, which would mute any oil-adding benefits. Pioneer Natural Resources and Whiting Petroleum have also been named as potential Exxon targets, Pioneer for its sizable positions in the Permian and South Texas’ Eagle Ford Shale and Whiting for its properties in the Bakken, where Exxon has expanded its position in recent years. Exxon recently bought a 35% stake in an oil block off the coast of Uruguay, joining with France’s Total SA to drill the country’s first offshore exploratory well in the first half of next year. Projects like that aren’t likely to boost the company’s oil production as easily, or as quickly, as an acquisition would.
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