ExxonMobil Announces Acquisition Of Pioneer Natural For $59.5 Bn

US natural gas company, ExxonMobil announced to buy Pioneer Natural Resources in an all-stock deal valued at $59.5 billion at $253 per share. This is the company's largest acquisition after Mobil Corp in more than two decades. Exxon is committing about $ 64.5 billion to the acquisition including debt, which leaves no doubt of the energy company's commitment to fossil fuels as energy prices surge.

According to the Wall Street Journal report, Exxon would become a top producer in the most prolific US oil basin after the completion of the deal. The agreement between two of the biggest acreage holders in the Permian Basin of Texas and New Mexico would be completed soon due to negligible complications in the deal, added the report.

Pioneer shareholders will get 2.32 shares of Exxon for each Pioneer share held. The deal will expand Exxon's presence in the Permian basin, which is a massive oilfield straddling the border between Texas and New Mexico. Pioneer holds more than 8,50,000 net acres in the Midland Basin which will be combined with Exxon's 5,70,000 net acres in the Delaware and Midland Basin allowing the combined entity to trim costs.

The boards of both Exxon and Pioneer have approved the deal and expect it to close in the first half of next year, but the transaction still awaits approval from Pioneer shareholders.

In 2020, Pioneer Natural announced buying Parsley Energy in an all-stock deal valued at approximately $4.5 billion. Following that, the company acquired DoublePoint Energy in a cash-and-stock deal worth about $6.4 billion in 2021.