ExxonMobil To Acquire Irving-Based Pioneer Natural Resources in $64.5 Billion Deal

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."

Exxon Mobil Corp. will acquire Irving-based Pioneer Natural Resources in an all-stock transaction valued at $59.5 billion, the companies announced.

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 $64.5 billion.

The companies said 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 U.S. unconventional inventory position.

The deal is expected to close in the first half of 2024. ExxonMobil is now based in Houston after relocating from its former headquarters in Irving, where it maintains a large campus.

“Pioneer is a clear leader in the Permian with a unique asset base and people with deep industry knowledge. 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,” ExxonMobil Chairman and CEO Darren Woods said in a statement. “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.”

Together, the companies said they will have an estimated 16 billion barrels of oil equivalent resource in the Permian.

At close, ExxonMobil said its Permian production volume would more than double to 1.3 million barrels of oil equivalent (MOEBD) per day, based on 2023 volumes, and is expected to increase to roughly 2 MOEBD in 2027.

Combining Permian inventory with tech and financial resources

ExxonMobil said the deal is an opportunity for even greater U.S. energy security by bringing the best technologies, operational excellence, and financial capability to an important source of domestic supply.

“The combination of ExxonMobil and Pioneer creates a diversified energy company with the largest footprint of high-return wells in the Permian Basin,” Pioneer CEO Scott Sheffield said in a statement. “As part of a global enterprise, Pioneer, our shareholders and our employees will be better positioned for long-term success through a size and scale that spans the globe and offers diversity through product and exposure to the full energy value chain.”

“The consolidated company will maintain its leadership position,” Sheffield added, “driving further efficiencies through the combination of our adjacent, contiguous acreage in the Midland Basin and our highly talented employee base, with the improved ability to deliver durable returns, creating tangible value for shareholders for decades to come.”

The companies said that by combining Pioneer’s differentiated Permian inventory and basin knowledge with ExxonMobil’s proprietary technologies, financial resources, and industry-leading project development, they are expected to generate double-digit returns by recovering more resource, more efficiently, and with a lower environmental impact.

ExxonMobil added that it has “industry-leading plans” to achieve net zero Scope 1 and Scope 2 greenhouse gas emissions from its Permian unconventional operations by 2030. As part of the transaction, ExxonMobil intends to leverage its Permian greenhouse gas reduction plans to accelerate Pioneer’s net zero emissions plan by 15 years, to 2035.

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R E A D   N E X T

  • Currently Pioneer's president and COO, Richard D. "Rich" Dealy brings more than 30 years of industry experience in roles spanning nearly all operations and business functions at Pioneer and its predecessor company. He will replace the retiring Scott Sheffield. The news comes amid reports that Exxon Mobil Corp. has held preliminary talks with Pioneer about a possible acquisition of the company.

  • The company has awarded a contract for front-end engineering and design for the project. Its Baytown low-carbon hydrogen, ammonia, and carbon capture facility is expected to produce 1 billion cubic feet of low-carbon hydrogen per day, making it the largest low-carbon hydrogen project in the world at planned startup in 2027-2028.

  • The investment from Cobalt Ventures follows MedArrive's $25 million series A round in November 2021 and brings its total funding to $40.5 million to date. "Everyone in America has a right to inclusive, high-quality care, yet too many are left out and have no one on their side who can connect them to the system," MedArrive Co-Founder and CEO Dan Trigub said. "That's what the MedArrive platform and our field providers offer."

  • OK, your house is a showplace. Your pool? Priceless. That $100K kitchen you never cook in? "Top Chef" ready. You've got a man cave to die for, and your she-shed cred's incredible. But you're missing one big thing—a swanky crib that your car can call home. Trailblazers is coming to change that—starting at $501K per unit.

  • After going dark for decades, Pioneer Tower glowed once again following the 2019 completion of a $4.7 million city of Fort Worth refurbishment project. In a 21st century twist, the tower got programmable LED lighting to mark holidays and special events. Now the restoration has earned Historic Fort Worth’s 2022 Preservation Project Award.