How to record Exxon Mobile acquisition of Pioneer Natural Resources.

mudtracker2

I followed member "sjmsing" instructions and the transaction showed up in my Pioneer Natural Resourse account. The EXXON account is blank. Most likely I need step by step instructions.

Thank you.

Jim_Harman

[edited]

You are free to set up a different account for each security you hold if you want, but investing accounts can hold multiple securities and normally you would have one account for all the securities you hold at a particular broker. That way the account balance will match your broker's statements.

I take it you held both XOM and PXD before the acquisition, but in different accounts. Or did you set up an XOM account but initially did not have any shares in it?

Quicken's Corporate Acquisition just works on one account so if you enter the acquisition in the PXD account, you should end up with XOM shares there instead of the PXD.

A better approach if you really want to have a different account for each security would be to go to the PXD account and use the Enter Transactions button, selecting Shares Transferred between Accounts to move the PXD to the XOM account then go to the XOM account and enter the Corporate Acquisition there. Then the XOM shares will end up in the XOM account.

Tom Young

It seems like this is a simple non-taxable acquisition where you lose your Pioneer Natural Resources shares and receive in their place ExxonMoblile shares:

2.3234 shares of ExxonMobil for each Pioneer share at closing May 3, 2024

So you should be able to use the "Action" of "Corporate Acquisition (stock for stock." You enter the May 3rd date, you enter the names of the stocks involved, you put the 2.3234 figure in the "New shares issued per share held" box, and enter $116.00 in the "Price per share for acquiring company" box.

Quicken should Remove the Pioneer shares and then Add the ExxonMobile shares - one Add per lot of Pioneer held. This should result in the number of shares you should have received if fractional shares were issued. You then "sell" the fractional share that you should have received, using the "cash in lieu" dollar amount you received as the "proceeds" from the sale.

NotACPA

@mudtracker2 What "accounts" are you talking about?

In Q, both PXD and XOM should be held as securities in Investment type accounts … not in their own "accounts".

mudtracker2

I have PXD and EOM listed separately in my investments accounts. After doing as you suggested, and making the suggested entries I hit "Done". The shares of PXD do not show up in the XOM account. XOM account shows nothing.

Tom Young

The symbol for ExxonMobile is XOM not EOM.

I'm not sure I'm understanding the setup of your Quicken Accounts. An "Account" in Quicken should be associated with an "account" at a financial institution, e.g., Schwab, Vanguard, etc., NOT to one particular security.

That is, if you used to hold PXD at, let's say, Schwab, then within the Quicken Schwab Account you should see PXD go away and XOM show up, since PXD not longer exists as they were acquired by XOM.

The PXD shares should not "show up" anywhere, in any Account, as that company no longer exists as a separate entity.

IF, within the Quicken Account in which you have your PXD shares you perform the "Corporate Acquisition (stock for stock)" action THEN the PXD shares should be gone and the XOM shares should show up.

Some direct questions for which I'd like direct answers:

• Do you hold your securities through a broker?
• If the answer to above question is "Yes", is this the SAME broker for both securities.
• Are you telling us that you've created separate Quicken Accounts for PXD and XOM?
• If the answer to the proceeding question is "Yes", are these Accounts established as Single Mutual Fund Accounts?

NotACPA

"If the answer to the proceeding question is "Yes", are these Accounts established as Single Mutual Fund Accounts?"

But XOM and PXD aren't funds … so I don't see how that's possible either.

q_lurker

But XOM and PXD aren't funds … so I don't see how that's possible either.

That is not a programmed restriction … or if it is, it can be easily bypassed.

mudtracker2

"EOM" is a typo. I have Exxon listed as XOM. However, I have PXD and XOM listed as separate accounts, as well as many others but not as a Single Mutual Fund Account. Also when using the "Corporate Acquisition (stock for stock)" the PXD shares are still shown.

q-lurker; if there is a way to bypass this could you explain that process. I've been at this for more than a few weeks. Somehow eliminate the PXD account shares and then just enter the new shares amount in the XOM account.

Jim_Harman

[edited]

You are free to set up a different account for each security you hold if you want, but investing accounts can hold multiple securities and normally you would have one account for all the securities you hold at a particular broker. That way the account balance will match your broker's statements.

I take it you held both XOM and PXD before the acquisition, but in different accounts. Or did you set up an XOM account but initially did not have any shares in it?

Quicken's Corporate Acquisition just works on one account so if you enter the acquisition in the PXD account, you should end up with XOM shares there instead of the PXD.

A better approach if you really want to have a different account for each security would be to go to the PXD account and use the Enter Transactions button, selecting Shares Transferred between Accounts to move the PXD to the XOM account then go to the XOM account and enter the Corporate Acquisition there. Then the XOM shares will end up in the XOM account.

mudtracker2

Yes, the "better approach" worked. Thank you very much. I have been wrestling with this acquisition for more than a month.

Thank you.