en
Researched by Industrial Info Resources (Sugar Land, Texas)--Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) has agreed to acquire Pioneer Natural Resources (NYSE:PXD) (Irving, Texas) in an all-stock deal worth $59.5 billion, the companies announced Wednesday. The deal will make ExxonMobil the largest oil and gas producer in the Permian Basin.
The acquisition will more than double ExxonMobil's Permian footprint, combining Pioneer's more than 850,000 net acres in the Midland Basin with ExxonMobil's 570,000 net acres in the Delaware and Midland basins, according to the announcement. Together, the companies will have an estimated 16 billion barrels of oil equivalent resource in the Permian, with 15 to 20 years of remaining inventory.
Click on the image at right for a map showing ExxonMobil and Pioneer's respective Permian acreages
Industrial Info is tracking 70 operating ExxonMobil Oil & Gas Production plants in New Mexico and Texas. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Plant Database can click here for a list of related plant profiles. Industrial Info's GMI database also includes 52 Pioneer production plant profiles in Texas and New Mexico. Click here for that list.
ExxonMobil's Permian production volume would more than double to 1.3 million barrels of oil equivalent per day, based on 2023 volumes, and is expected to increase to about 2 million barrels of oil equivalent per day in 2027. The acquisition will increase ExxonMobil's total production to 5 million barrels of oil equivalent by 2027.
"The unique, complementary fit of Pioneer's contiguous acreage will allow ExxonMobil to drill long, best-in-class laterals--up to four miles--which will result in fewer wells and a smaller surface footprint," ExxonMobil said. "The company also expects to enhance field digitalization and automation that will optimize production throughput and cost."
The acquisition is ExxonMobil's biggest deal since Exxon's $81 billion acquisition of Mobil Oil in the late 1990s. The Pioneer deal is expected to be finalized in the first half of 2024.
In a prepared statement, ExxonMobil Chief Executive Officer Darren Woods said Pioneer's "acreage is also highly contiguous--which is critical to realizing the full benefits of our development approach and technologies."
Noting that Pioneer has about 7,000 producing wells, Woods said, "Our combined capabilities will enable us to get more resource out of the ground, more efficiently and with a lower environmental impact, thereby enhancing our ability to serve consumers and strengthen U.S. energy security."
ExxonMobil also expects the deal to lead to cost synergies averaging $2 billion a year over the next 10 years. About a third of that amount will come from capital and operational expense synergies, company executives said in a conference call discussing the deal.
Reuters reported that Woods said in an interview that he doesn't anticipate antitrust hurdles to complete the deal.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
The acquisition will more than double ExxonMobil's Permian footprint, combining Pioneer's more than 850,000 net acres in the Midland Basin with ExxonMobil's 570,000 net acres in the Delaware and Midland basins, according to the announcement. Together, the companies will have an estimated 16 billion barrels of oil equivalent resource in the Permian, with 15 to 20 years of remaining inventory.
Industrial Info is tracking 70 operating ExxonMobil Oil & Gas Production plants in New Mexico and Texas. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Plant Database can click here for a list of related plant profiles. Industrial Info's GMI database also includes 52 Pioneer production plant profiles in Texas and New Mexico. Click here for that list.
ExxonMobil's Permian production volume would more than double to 1.3 million barrels of oil equivalent per day, based on 2023 volumes, and is expected to increase to about 2 million barrels of oil equivalent per day in 2027. The acquisition will increase ExxonMobil's total production to 5 million barrels of oil equivalent by 2027.
"The unique, complementary fit of Pioneer's contiguous acreage will allow ExxonMobil to drill long, best-in-class laterals--up to four miles--which will result in fewer wells and a smaller surface footprint," ExxonMobil said. "The company also expects to enhance field digitalization and automation that will optimize production throughput and cost."
The acquisition is ExxonMobil's biggest deal since Exxon's $81 billion acquisition of Mobil Oil in the late 1990s. The Pioneer deal is expected to be finalized in the first half of 2024.
In a prepared statement, ExxonMobil Chief Executive Officer Darren Woods said Pioneer's "acreage is also highly contiguous--which is critical to realizing the full benefits of our development approach and technologies."
Noting that Pioneer has about 7,000 producing wells, Woods said, "Our combined capabilities will enable us to get more resource out of the ground, more efficiently and with a lower environmental impact, thereby enhancing our ability to serve consumers and strengthen U.S. energy security."
ExxonMobil also expects the deal to lead to cost synergies averaging $2 billion a year over the next 10 years. About a third of that amount will come from capital and operational expense synergies, company executives said in a conference call discussing the deal.
Reuters reported that Woods said in an interview that he doesn't anticipate antitrust hurdles to complete the deal.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
