On October 23, 2023 ExxonMobil announced the acquisition of Pioneer Natural Resources in an all-stock transaction valued at approximately $64.5 billion. The acquisition would combine Pioneer’s more than 856,000 acres in the Midland Basin with ExxonMobil’s 570,000 net acres in the adjacent Delaware and Midland Basins resulting in an estimated 16 billion barrels of oil equivalent resources in the Permian Basin. In its announcement ExxonMobil explained the rationale for the acquisition:
· “Transforms ExxonMobil’s upstream portfolio, more than doubling the company’s Permian footprint and creating an industry-leading, high-quality, high-return undeveloped U.S. unconventional inventory position.”
· “Expect to generate double-digit returns by recovering more resource, more efficiently and with lower environmental impact.”
· “Combines Pioneer’s sizeable acreage, entrepreneurial culture and deep industry expertise with ExxonMobil’s balance-sheet strength, advanced technologies and industry-leading project development capabilities.”
· Plans to accelerate Pioneer’s net zero Permian ambition from 2050 to 2035.”
Silhouette of Permian Basin pumpjacks taken at dusk, north of Midland, Texas, U.S. in late 2019.
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