ExxonMobil to acquire Pioneer

ExxonMobil has announced its plans to acquire Pioneer in an all-stock transaction valued at $59.5 billion, or $253 per share. According to a press release by ExxonMobil, Pioneer shareholders will receive 2.3234 shares of ExxonMobil for each Pioneer share at closing.

The merger will combine 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.

ExxonMobil revealed that the implied total enterprise value of the transaction, including net debt, is approximately $64.5 billion. The combined entity is projected to possess roughly 16 billion barrels of oil equivalent in the Permian region. This will double ExxonMobil's Permian production from 1.3 million barrels of oil equivalent per day in 2023 to 2 by 2027.

ExxonMobil Chairman and CEO Darren Woods stated, "Pioneer is a clear leader in the Permian with a unique asset base and people with deep industry knowledge." He added, "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." Woods also mentioned that the merger will bring together environmental best practices and accelerate Pioneer's net-zero plan from 2050 to 2035.

Pioneer Chief Executive Officer Scott Sheffield expressed his enthusiasm for the merger, stating, "The combination of ExxonMobil and Pioneer creates a diversified energy company with the largest footprint of high-return wells in the Permian Basin." Sheffield believes that the consolidated company will maintain its leadership position and deliver durable returns, creating tangible value for shareholders for decades to come.

The acquisition of Pioneer by ExxonMobil will significantly impact the energy industry, combining two major players in the Permian Basin and creating a powerhouse with extensive assets and expertise.