ExxonMobil merges with Pioneer Natural Resources
Published on: Oct 12, 2023
The all-stock acquisition will transform Exxon’s upstream portfolio and accelerate Pioneer’s net zero Permian ambition from 2050 to 2035.
Exxon Mobil has acquired Pioneer Natural Resources in an all-stock transaction valued at $59.5 billion. The merger combines Pioneer’s more than 850,000 net acres in the Midland Basin with Exxon’s 570,000 net acres in the Delaware and Midland Basins.
Together, the companies will have an estimated 16 billion barrels of oil equivalent resource in the Permian. At close, ExxonMobil’s Permian production volume would more than double to 1.3 million barrels of oil equivalent per day (MOEBD) and is expected to increase to approximately 2 MOEBD in 2027.
“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," said Darren Woods, Chairman and CEO of ExxonMobil.
The company believes the transaction represents 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, benefitting the American economy and its consumers.
“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,” adds Woods.
Exxon expects a cost of supply of less than $35 per barrel from Pioneer’s assets. By 2027, short-cycle barrels will comprise more than 40% of the total upstream volumes, positioning the company to more quickly respond to demand changes and increase capture of price and volume upside.
