ExxonMobil Merges with Pioneer Natural Resources in All-Stock Acquisition

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A definitive agreement has been signed for the acquisition and merging of Pioneer Natural Resources’ stocks and energy assets.

After signing a definitive agreement, ExxonMobil acquired Pioneer Natural Resources. The all-stock transaction is valued at $59.5 billion—$253 per share—which is based on the closing price on Oct. 5, 2023. According to the transaction terms, Pioneer shareholders will receive 2.3234 shares of ExxonMobil for each Pioneer share at the deal’s closing. Factoring in net debt, the total enterprise value of the agreement is approximately $64.5 billion.

ExxonMobil’s acquisition will merge Pioneer’s Midland Basin acreage (850,000) with its own acreage in the Delaware and Midland Basins (570,000). The merged companies will have approximately 16 billion barrels of oil equivalent housed in Permian basin geological formations. The merger increases ExxonMobil’s Permian production volume by more than double, putting the mark at 1.3 million barrels of oil equivalent per day (MOEBD), according to 2023 volumes. This oil equivalent production volume is slated to rise to approximately 2 MOEBD in 2027.


“The combined capabilities of our two companies will provide long-term value creation well in excess of what either company is capable of doing on a standalone basis,” said Darren Woods, ExxonMobil Chairman and CEO. “Their tier-one acreage is highly contiguous, allowing for greater opportunities to deploy our technologies, delivering operating and capital efficiency as well as significantly increasing production. As importantly, as we look to combine our companies, we bring together environmental best practices that will lower our environmental footprint and plan to accelerate Pioneer’s net-zero plan from 2050 to 2035.”

The addition of Pioneer’s acreage enables ExxonMobil to drill extensive laterals to reduce surface footprint and utilize fewer support wells. Pioneer’s assets will enhance field digitalization and automation for ExxonMobil, optimizing the company’s throughput and lowering overall costs. Acquired assets are expected to reduce the supply costs to less than $35 per barrel.

ExxonMobil plans to accelerate Pioneer’s net-zero emissions plan by 15 years, to 2035, through the deployment of its Permian greenhouse gas reduction strategy. Application of remote monitoring, measuring, and fugitive methane management will reduce the methane emissions of both companies. In addition, the combined operating capabilities and infrastructure are expected to increase recycled water usage for Permian operations by more than 90% by 2030.

“The combination of ExxonMobil and Pioneer creates a diversified energy company with a footprint of high-return wells in the Permian Basin,” said Scott Sheffield, Pioneer's Chief Executive Officer. “The consolidated company will maintain its leadership position, driving further efficiencies through the combination of our adjacent, contiguous acreage in the Midland Basin with the improved ability to deliver durable returns, creating tangible value for shareholders for decades to come.”

The transaction has been formally approved by the Board of Directors at each company, but customary regulatory reviews and shareholder approvals are still pending. ExxonMobil’s merger is expected to close within the first half of 2024.