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ExxonMobil to buy Pioneer in $60 billion deal

11 October 2023

ExxonMobil announced that it agreed to buy Pioneer Natural Resources in an all-stock deal valued at $59.5 billion. The acquisition—Exxon’s largest since its merger with Mobil in 1999—will make ExxonMobil the largest oil producer in the Permian basin.

Pioneer is the Permian basin’s largest operator, accounting for 9% of gross oil and gas output, while ExxonMobil occupies the fifth position with 6% of output.

The merger combines Pioneer’s more than 850,000 net acres in the Midland Basin with ExxonMobil’s 570,000 net acres in the Delaware and Midland Basins, creating the industry’s leading high-quality undeveloped US unconventional inventory position, ExxonMobil said. At close, ExxonMobil’s Permian production volume would more than double to 1.3 million barrels of oil equivalent per day (boe/d), based on 2023 volumes. By 2027, ExxonMobil expects to increase its Permian output to approximately 2 million boe/d by combining its technology with Pioneer’s lower cost of operations.

Under the terms of the agreement, Pioneer shareholders will receive 2.3234 shares of ExxonMobil for each Pioneer share at closing. The deal, valued at $253 a share, represents an 18% premium to Pioneer’s closing price on October 5th and a 9% premium to its prior 30-day average price. The Boards of Directors of both companies have unanimously approved the transaction, which is subject to customary regulatory reviews and approvals. It is also subject to approval by Pioneer shareholders. The transaction is expected to close in the first half of 2024.

Source: ExxonMobil