Exxon Mobil To Buy Pioneer Natural Resources For $59.5 Bln In All-stock Deal

(RTTNews) - Exxon Mobil Corp. (XOM), a natural gas firm, and Pioneer Natural Resources Co. (PXD), a hydrocarbon explorer, announced a deal in which ExxonMobil will acquire Pioneer in an all-stock transaction valued at $59.5 billion, or $253 per share, which is based on XOM closing price on October 5.

The per-share merger consideration represents around an 18 percent premium to Pioneer's closing price and a 9 percent premium to its prior 30-day volume-weighted average price on October 5.

As per the deal, Pioneer shareholders will receive 2.3234 shares of ExxonMobil for each Pioneer share at closing.

The implied total enterprise value of the transaction, including net debt is around $64.5 billion.

The merger, expected to be closed in the first half of 2024, is anticipated to be accretive immediately and highly accretive in the mid-to-long-term earnings per share of ExxonMobil.

Darren Woods, CEO of ExxonMobil, said: "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..." The merger combines Pioneer's over 850,000 net acres in the Midland Basin with ExxonMobil's 570,000 net acres in the Delaware and Midland Basins and an estimated 16 billion barrels of oil equivalent resource in the Permian.

Post transaction, ExxonMobil's Permian production volume would double to over 1.3 million barrels of oil equivalent per day or MOEBD, based on 2023 volumes, and is expected to increase to around 2 MOEBD in 2027.