Exxon Mobil said Wednesday it agreed to buy shale rival Pioneer Natural Resources for $59.5 billion in an all-stock deal, or $253 per share.
As part of the agreement, Pioneer stockholders will receive 2.3234 shares of Exxon for every Pioneer share they own. The deal, Exxon’s biggest since its acquisition of Mobil, is expected to close in the first half of 2024, the companies said in a release.
Pioneer shares were up nearly 2% in premarket trading, while Exxon was down more 2%.
Exxon said its production volume in the Permian Basin would more than double to 1.3 million barrels of oil equivalent per day once the deal closes.
“The combined capabilities of our two companies will provide long-term value creation well in excess of what either company is capable of doing on a standalone basis,” Exxon Mobil CEO Darren Woods said in a statement.
“As importantly, as we look to combine our companies, we bring together environmental best-practices that will lower our environmental footprint and plan to accelerate Pioneer’s net-zero plan from 2050 to 2035,” Woods added.
Pioneer Chief Executive Scott Sheffield also noted that the company will be “be better positioned for long-term success through a size and scale that spans the globe and offers diversity through product and exposure to the full energy value chain” once the acquisition is completed.
The announcement comes after The Wall Street Journal reported last week that both companies were closing in on a deal. Since then, Pioneer shares are up more than 10%.
For the year, however, Pioneer is only up 3.9%. The S&P 500, by comparison, has risen 13% in that time. Exxon shares have also struggled in 2023, climbing modestly.
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