Current:Home > ScamsExxon Mobil buys Pioneer Natural in $59.5 billion deal with energy prices surging-DB Wealth Institute B2 Expert Reviews
Exxon Mobil buys Pioneer Natural in $59.5 billion deal with energy prices surging
View Date:2024-12-23 16:26:36
Exxon Mobil Corp. is buying Pioneer Natural Resources in an all-stock deal valued at $59.5 billion, its largest buyout since acquiring Mobil two decades ago, creating a colossal fracking operator in West Texas.
Including debt, Exxon is committing about $64.5 billion to the acquisition, leaving no doubt of the Texas energy company’s commitment to fossil fuels.
Pioneer shareholders will receive 2.3234 shares of Exxon Mobil for each Pioneer share they own.
Exxon purchased XTO Energy in 2009 for approximately $36 billion. In the late 1990s, the merger between Exxon and Mobil was valued around $80 billion.
The deal with Pioneer Natural expands Exxon’s presence in the Permian basin that straddles the border between Texas and New Mexico. Pioneer’s more than 850,000 net acres in the Midland Basin will be combined with Exxon’s 570,000 net acres in the Delaware and Midland Basins, which all border each other. The company will have an estimated 16 billion barrels of oil equivalent resource in the Permian.
Once the deal closes, Exxon Permian production volume will more than double to 1.3 million barrels of oil equivalent per day, based on 2023 volumes. It’s expected to climb to about 2 million barrels of oil equivalent per day in 2027.
“The combination of ExxonMobil and Pioneer creates a diversified energy company with the largest footprint of high-return wells in the Permian Basin,: Pioneer CEO Scott Sheffield said in a prepared statement.
Exxon has been flush with cash. The company posted record annual profits in 2022, bringing in $55.7 billion in annual profits, exceeding its previous record of $45.22 billion in 2008.
Exxon has been using some of that cash on acquisitions. In July the company announced that it was buying pipeline operator Denbury in an all-stock deal valued at $4.9 billion.
Pioneer Natural has been making similar moves. In 2020 the company said it was buying Parsley Energy in an all-stock deal valued at approximately $4.5 billion. It then purchased DoublePoint Energy in a cash-and-stock deal worth about $6.4 billion in 2021.
Both companies’ boards have approved the transaction, which is expected to close in the first half of next year. It still needs approval from Pioneer shareholders.
Pioneer’s stock gained more than 2% before the market open on Wednesday, while shares of Exxon fell slightly.
veryGood! (585)
Related
- Social media star squirrel euthanized after being taken from home tests negative for rabies
- Playing in the Dirty (NFC) South means team can win the division with a losing record
- College football bold predictions for Week 13: Florida State's season spoiled?
- Lawyer for Italian student arrested in ex-girlfriend’s slaying says he’s disoriented, had psych exam
- The Best Gifts for People Who Don’t Want Anything
- Becky G Reveals How She Found Her Inner Strength By Making This Lifestyle Change
- Four local employees of Germany’s main aid agency arrested in Afghanistan
- ‘You’ll die in this pit': Takeaways from secret recordings of Russian soldiers in Ukraine
- Week 10 fantasy football rankings: PPR, half-PPR and standard leagues
- From 'Butt Fumble' to 'Hell Mary,' Jets can't outrun own misery in another late-season collapse
Ranking
- Asian sesame salad sold in Wegmans supermarkets recalled over egg allergy warning
- Jalen Hurts runs for winning TD in overtime, Eagles rally past Josh Allen, Bills 37-34
- Digging to rescue 41 workers trapped in a collapsed tunnel in India halted after machine breaks
- Rosalynn and Jimmy Carter were not only a global power couple but also best friends and life mates
- Judith Jamison, a dancer both eloquent and elegant, led Ailey troupe to success over two decades
- This week on Sunday Morning (November 26)
- Irish writer Paul Lynch wins Booker Prize for dystopian novel 'Prophet Song'
- Beyoncé films to watch ahead of 'Renaissance' premiere
Recommendation
-
Sydney Sweeney Slams Women Empowerment in the Industry as Being Fake
-
Taylor Swift's surprise songs in São Paulo. Which songs does she have left for Eras tour?
-
Timeline: The mysterious death of Stephen Smith in Murdaugh country
-
Mississippi State football hires Jeff Lebby, Oklahoma offensive coordinator, as next coach
-
Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Red Velvet, Please
-
Stock market today: Asian shares mostly decline, as investors watch spending, inflation
-
How WWE's Gunther sees Roman Reigns' title defenses: 'Should be a very special occasion'
-
Lebanese residents of border towns come back during a fragile cease-fire