Cramer's Morning Take: Will ExxonMobil Buy Pioneer? 4/11/23

Jim Cramer (0:02)

I'm Jim Cramer and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting.

We don't have a market that is necessarily indicative of anything apart because I think we've got some Fed governors and people saying, hey, listen, don't worry about things. At the same time, we've got some cross-current news about maybe deals and maybe not deals that aren't coming to work. Oil up a little. I have to tell you that the one that I think most impacts us was that my partner, David Faber, has come back this morning and really threw cold water on Pioneer.

Jeff Marks (0:35)

I think so. He questioned why was the story even written where if a deal were to happen, it probably wouldn't happen this year, which is what the story said itself.

I thought yesterday was a wake-up call for the group that perhaps a lot of them are too cheap, which I think we've been in that camp, too.

Jim Cramer (0:53)

I'm going to go over exactly how cheap they are and how much better it is to just go and buy one than it is to drill one.

Jeff Marks (1:01)

But lower expectations that we might get some type of news.

Jim Cramer (1:04)

Yeah, we definitely lower expectations, but I do want to point out that there is a discussion that these companies are willing to go. They're willing to go, but the prices they want are probably way too high.

Jeff Marks (1:17)

Yeah, well, we know a company like Exxon made a lot of money last year, a lot of excess free cash flow above what they're paying out.

Jim Cramer (1:26)

But they bought XTL, which was a gas company, but it closed off here and then gas went from nine to two.

This is what you're fighting if you're buying Exxon. This price, if Exxon is buying, you've got to at least top that price.

Jeff Marks (1:40)

The old high.

Jim Cramer (1:40)

Or else they're not going to let it happen. So let's put that on the back burner.

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