Cramer's Morning Take: Exxon Mobil & Pioneer 10/12/23

SPEAKER_1 (0:00)

What do you see on the horizon for financial markets?

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Jim Cramer (0:33)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

You know what, it's funny, these strategists are now saying, why isn't the war, why isn't geopolitics playing a role? And I think that that's because you need to have some input that reaches here. And oil did not go up as much as people thought. So yeah, I mean, I'm not saying it's benign. I'm just saying, I wish it were better. How about that?

Jeff Marks (0:58)

Speaking of oil, it might be good to talk again about the plan for Pioneer.

Jim Cramer (1:02)

Yeah, why don't you go into that?

Jeff Marks (1:03)

Now that Exxon Mobil is acquiring the company. Well, look, what we said yesterday remains today, that we want to sell when we are no longer restricted. It might be Monday.

Jim Cramer (1:15)

And good, I mean, I read the deck in the conference call. It's clear that Sheffield Authority is going to get 250 minimum.

But let's remember that the stock was higher at one point. You never want someone to sell out at a lower price than the all-time high.

Jeff Marks (1:32)

Sure, and I think Exxon falling a few percent yesterday kind of hit the stock price.

Jim Cramer (1:37)

I think they were surprised.

Jeff Marks (1:40)

I think so, because I think Pioneer's assets are that good.

Jim Cramer (1:43)

Yeah, remember, it's 150,000 more barrels per day, a billion dollars in synergies next year.

Jeff Marks (1:49)

Yeah, but look, anyway, if you want to hold on to Pioneer for the Exxon shares, just one thing to point out, you'll still get the fixed quarterly dividend from Pioneer as you wait for the deal to complete. Pioneer, they won't be repurchasing stock, which is customary with any transaction. You'll get two variable dividend payments, the quarterly payments, but it will be at a reduced figure of free cash flow.

Jim Cramer (2:14)

And people once again have to recognize that we're going to take the money and run, so to speak, not anything having to do with not liking the deal. But our status as non-arbitrary service has been the way since I started the Charitable Trust. Just what we don't do.

It'll raise our cash too.

Jeff Marks (2:32)

Yeah, you know, only if you think that maybe another bidder would come in or that they need to raise the price, which if you remember, I'm dating back about four or five years ago.

No, well, yes, Anadarko, yes, but NXP, NXP Semiconductor when they got the bid, the Fairfax. Now that deal ended up not happening. I think the Antitrust came in, but they did get the extra, the higher number.

Jim Cramer (2:54)

Maybe someone comes in, but it would have to be Chevron. And I don't think it's going to happen.

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