In its biggest deal in a decade, ExxonMobil is set to purchase Pioneer Natural Resources for $60 billion (€56.7 billion).
Exxon will acquire more than 850,000 acres in the Permian Basin in West Texas, USA, more than doubling the company’s output in a region that accounted for 18% of all US natural gas production in 2022, according to the Energy Information Administration.
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), based on 2023 volumes, and is expected to increase to approximately 2 MOEBD in 2027.
ExxonMobil believes the transaction represents an opportunity for even greater US 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.
‘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,’ says ExxonMobil Chairman and CEO Darren Woods. ‘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.’
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.
