ExxonMobil Closes $59.5B Acquisition of Irving-Based Pioneer Natural Resources

ExxonMobil said the merger creates "an unconventional business" with the largest, high-return development potential in the Permian Basin.

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.

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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.

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