ExxonMobil acquired Pioneer for $59.5 billion – Kommersant

ExxonMobil announced about the purchase of another American oil and gas company – Pioneer Natural Resources. The deal will be paid entirely in ExxonMobil stock and is valued at $59.5 billion. It is the company’s largest deal since the Exxon-Mobil merger in 1999, which was valued at $80.3 billion.

Under the terms of the agreement, Pioneer shareholders will receive 2.3234 ExxonMobil shares for each Pioneer share upon closing of the transaction. Thus, Pioneer was valued by ExxonMobil at $64.5 billion.

If the deal closes, ExxonMobil will become the largest player in the Permian oil and gas basin. As noted in the press release, in the event of a merger, the companies will have, according to preliminary estimates, access to 16 billion barrels of oil equivalent in the Permian Basin. Upon closing of the deal, ExxonMobil’s production in the Permian Basin will more than double to 1.3 million barrels of oil equivalent per day, and by 2027 this figure should rise to approximately 2 million barrels.

ExxonMobil at the end of 2022 received a record net profit for itself and all Western oil companies in the amount of $55.7 billion. Having received a huge reserve of cash, the company not only increased dividends to shareholders and announced a large-scale share buyback program, but also began to explore options for further business expansion, in particular in the field shale fields in West Texas.

ExxonMobil shares are down nearly 2% in after-hours trading on the New York Stock Exchange. Pioneer stock prices, on the contrary, are growing by 2%.

Kirill Sarkhanyants