Exxon Mobil Corporation has sealed a deal to acquire Pioneer Natural Resources in an all-stock transaction valued at $59.5 billion. This move, Exxon’s largest since the Mobil merger two decades ago, will create a formidable fracking operator in West Texas.
Including debt, the acquisition totals around $64.5 billion. Pioneer shareholders will receive 2.32 shares of Exxon for each Pioneer share they hold, reported The Financial Times.
Exxon’s CEO, Darren Woods, emphasized the ongoing role of fossil fuels in the global energy transition, stating that while their prominence might wane over time, it’s unclear at what rate. Woods highlighted the potential for Exxon and Pioneer to work together to reduce emissions and produce lower-carbon-intensity oil and gas.
Read more: Italy’s Antitrust Watchdog Raids Eni, Exxon Mobil’s Esso Over Price Hikes
This acquisition expands Exxon’s presence in the Permian Basin, a significant oilfield straddling the Texas-New Mexico border. In 2022, the Permian accounted for 18% of all U.S. natural gas production. The deal combines Pioneer’s 850,000 net acres in the Midland Basin with Exxon’s 570,000 net acres in the Delaware and Midland Basin, which will streamline operations and cut costs.
Woods revealed that the combined company is estimated to have 16 billion oil equivalent barrels in Permian resources, with 15 to 20 years of inventory. This acquisition comes at a time when natural gas rigs in operation have declined by over 26% in the U.S. due to rising drilling costs and labor expenses.
Exxon’s expanded Permian production is set to more than double to 1.3 million barrels of oil equivalent per day, with expectations of reaching about 2 million barrels of oil equivalent per day by 2027.
The acquisition solidifies Exxon Mobil’s position in the energy sector and underscores its commitment to fossil fuels, even as the industry navigates evolving global energy dynamics.
Source: FT
Featured News
Judge Allows FTC Antitrust Case Against Amazon to Move Forward
Oct 1, 2024 by
CPI
SAP Leader Urges Caution on EU AI Rules, Warns of Competitive Disadvantage
Oct 1, 2024 by
CPI
Colorado’s Grocery Workers Unite to Oppose $24.6 Billion Supermarket Merge
Oct 1, 2024 by
CPI
Canada’s Competition Bureau Warns Businesses of Tougher Enforcement
Oct 1, 2024 by
CPI
Top Antitrust Lawyers Launch New Boutique Firm
Oct 1, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh