Houston-based ExxonMobil has completed its acquisition of Irving-based Pioneer Natural Resources, more than doubling ExxonMobil’s footprint in the Permian Basin.
ExxonMobil said the merger creates “an unconventional business” with the largest, high-return development potential in the Permian Basin.
“This premier, tier-one asset is a natural fit for our Permian portfolio and gives us a greater opportunity to deploy our technology and deliver operating and capital efficiency for long-term shareholder value,” ExxonMobil Chairman and CEO Darren Woods said in a statement. “The combination of our two companies benefits this country’s energy security and economy, and also furthers society’s environmental ambitions as we move Pioneer’s 2050 net zero goal to a 2035 plan.”
In October, we reported the deal would be an all-stock transaction valued at $59.5 billion. Pioneer shareholders will receive 2.3234 shares of ExxonMobil for each Pioneer share at closing. ExxonMobil said at the time the implied total enterprise value of the transaction, including net debt, is approximately $64.5 billion.
The combined company’s more than 1.4 million net acres in the Delaware and Midland basins have an estimated 16 billion barrels of oil equivalent resource, ExxonMobil said. Its Permian production volume will more than double to 1.3 million barrels of oil equivalent per day, based on 2023 volumes, and is expected to increase to approximately 2 MOEBD in 2027, based on initial estimates, the company said.
Aiming for net-zero in the Permian Basin
ExxonMobil said that combining Pioneer’s differentiated Permian inventory and basin knowledge with ExxonMobil’s proprietary technologies, financial resources, and industry-leading project execution excellence is expected to generate double-digit returns by recovering more resource, more efficiently and with a much lower environmental impact.
ExxonMobil said it has industry-leading plans to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions from its Permian unconventional operations by 2030.
With the merger completed, ExxonMobil said it will leverage its Permian greenhouse gas reduction plans to accelerate Pioneer’s Scope 1 and 2 net-zero emissions goal by 15 years. The company said it will also apply its industry-leading technologies for monitoring, measuring and addressing fugitive methane to reduce the combined companies’ methane emissions.
ExxonMobil said it expects to increase the amount of recycled water used in its Permian fracturing operations to more than 90% by 2030.
Get on the list.
Dallas Innovates, every day.
Sign up to keep your eye on what’s new and next in Dallas-Fort Worth, every day.
R E A D N E X T
-
The companies said the all-stock merger deal 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 "a diversified energy company with the largest footprint of high-return wells in the Permian Basin."
-
Founded by former First Lady and Dallas resident Laura Bush, Texan by Nature recognizes the best and most innovative work in conservation coming from businesses based or operating in Texas.
-
Evoque, a Dallas-based provider of comprehensive colocation, connectivity, and infrastructure solutions, has completed its previously announced acquisition of Cyxtera’s data center portfolio. Evoque and Florida-based Cyxtera will combine to form a leading data center company with more than 50 locations, mostly in North America. No financial details were released. "Combining Evoque and Cyxtera is a strategic step that aligns seamlessly with our vision for data infrastructure investments,” Udhay Mathialagan, board chair at Evoque and CEO, Global Data Centers, Brookfield Infrastructure, said in a statement. “This move not only swiftly amplifies the joint organization’s market presence, but also diversifies its product…
-
Jones, who's already the majority shareholder in Comstock Resources, has agreed to make an additional $100.45 million equity investment in the company via two entities he controls.
-
Richardson-based Lennox, a leader in energy-efficient climate-control solutions, completed the acquisition of Virginia-based AES, a company dedicated to service and sustainability in the light commercial market, the company announced in October. Terms of the acquisition were not disclosed. AES provides installations services, adapter curbs, and reclaim services across North America and will become part of the Lennox Commercial Business Segment, enabling the delivery of "front-to-back" life-cycle integrated services to AES and Lennox customers. "AES represents a strong strategic and cultural fit for the Lennox Commercial segment and is consistent with our growth strategy," Lennox EVP and President of the Commercial…
