Exxon Mobil is set to acquire Pioneer Natural Resources in a deal valued at $59.5bn (£48.4bn), positioning it as the premier global shale oil producer.
This year’s biggest corporate acquisition is an all-stock deal at $253 per share, marking Exxon’s most significant acquisition since its 1999 merger with Mobil.
With this merger, ExxonMobil became the predominant entity in the Permian Basin spanning Texas and New Mexico, raising its production to an impressive 4.5m barrels of oil equivalent daily – a 50% lead over its closest competitor.
Additionally, this acquisition grants ExxonMobil access to a plethora of untapped sites in the world’s largest shale basin. These onshore locations offer faster development compared to offshore sites.
Darren Woods, ExxonMobil’s chairman and CEO, commented:
Pioneer stands out in the Permian, boasting an unparalleled asset portfolio and a team rich in industry expertise. By combining our resources, we’re poised to generate long-term value that surpasses what each could achieve independently.
