ExxonMobil merges with Pioneer Natural Resources

ExxonMobil, based in Irving, Texas, United States, and Pioneer Natural Resources, also headquartered in Irving, have entered into a definitive agreement for a merger. This all-stock transaction is set to combine the strengths of both energy giants, enhancing the U.S. energy landscape.

The transaction is valued at USD59.5 billion, or USD253 per share, based on ExxonMobil’s closing price on October 5, 2023. Under the terms of the agreement, Pioneer shareholders will receive 2.3234 shares of ExxonMobil for each Pioneer share at closing. The implied total enterprise value of the transaction, including net debt, is approximately USD64.5 billion.

The merger will amalgamate 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. This union is projected to create an industry-leading inventory of high-quality undeveloped U.S. unconventional assets. The combined companies are expected to boast an estimated 16 billion barrels of oil equivalent resource in the Permian Basin.

Upon completion, ExxonMobil’s Permian production volume is anticipated to more than double to 1.3 million barrels of oil equivalent per day, based on 2023 volumes. This figure is expected to rise to approximately two million barrels per day by 2027. The merger underscores an opportunity for enhanced U.S. energy security, leveraging top-tier technologies, operational excellence, and financial resources.

The collaboration is also set to expedite Pioneer’s ambition to achieve net zero emissions in the Permian Basin by 2035, a goal initially set for 2050. This accelerated timeline underscores the companies’ commitment to environmental responsibility and sustainable operations.