ExxonMobil has agreed to buy shale producer Pioneer Natural Resources for about $60 billion, in a deal that would create one of the largest oil and gas companies in the world.
The deal is expected to close in the first half of 2024 and would give ExxonMobil a significant presence in the Permian Basin, the most prolific oil field in the United States.
Exxon Mobil is set to acquire U.S. rival Pioneer Natural Resources in an all-stock deal valued at $59.5 billion, making it the largest producer in the largest U.S. oilfield, the Permian Basin. The deal is Exxon’s largest since its purchase of Mobil Oil in 1998 and is the biggest acquisition this year by any company.
Exxon has offered $253 per share for Pioneer, representing a 9% premium to Pioneer’s average price in the 30 days leading up to the deal’s report. This acquisition would leave four of the largest U.S. oil companies controlling much of the Permian Basin shale field and its extensive oilfield infrastructure.
ExxonMobil is one of the largest oil and gas companies in the world, with operations in over 50 countries. Pioneer is the largest independent oil producer in the United States, with a focus on the Permian Basin.
The deal is seen as a way for ExxonMobil to expand its operations in the Permian Basin and to reduce its costs. Pioneer is a low-cost producer of oil, and ExxonMobil hopes to be able to achieve similar costs by combining its operations with Pioneer’s.
Pioneer, which has been successful in the shale revolution, will further enhance Exxon’s position in the energy sector. The acquisition will surpass Shell’s 2016 acquisition of BG Group, making Exxon the top player in the global liquefied natural gas market.
In a separate deal, Exxon had previously agreed to acquire Denbury, a U.S. oil firm with a focus on low-carbon business, for $4.9 billion. Exxon has been rebuilding its business after a sharp decline in its stock price in early 2020 when oil and gas prices collapsed.
The deal is also seen as a sign of ExxonMobil’s confidence in the future of oil and gas. The company is investing heavily in renewable energy, but it also believes that oil and gas will continue to play a major role in the global energy mix for many years to come.
The deal demonstrates Exxon’s commitment to its traditional oil and gas operations, despite increasing pressure to transition towards renewable energy sources.
It is important to note that the deal is still subject to approval from regulators. However, if it is approved, it will be a major event in the oil and gas industry and it will have a significant impact on the global energy landscape.
-inputs from Reuters
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