ExxonMobil announces merger with Pioneer Natural Resources in an all-stock transaction

The merger combines 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. Together, the companies will have an estimated 16 billion boe resource in the Permian. At close, ExxonMobil’s Permian production volume would more than double to 1.3 million boe/d, based on 2023 volumes, and is expected to increase to approximately 2 million moe/d in 2027. ExxonMobil believes the transaction represents an opportunity for even greater U.S. energy security by bringing the best technologies, operational excellence and financial capability to an important source of domestic supply, benefitting the American economy and its consumers.

Combining Pioneer’s differentiated Permian inventory and basin knowledge with ExxonMobil’s proprietary technologies, financial resources, and project development is expected to generate double-digit returns by recovering more resource, more efficiently and with a lower environmental impact.

The transaction is an opportunity to deliver leading capital efficiency and cost performance as well as increase production by combining Pioneer’s large-scale, contiguous, undeveloped Midland acreage with ExxonMobil’s Permian resource development approach.

The unique, complementary fit of Pioneer’s contiguous acreage will allow ExxonMobil to drill long laterals up to four miles, which will result in fewer wells and a smaller surface footprint. The company also expects to enhance field digitalisation and automation that will optimise production throughput and cost.

Read the article online at: https://www.oilfieldtechnology.com/special-reports/11102023/exxonmobil-announces-merger-with-pioneer-natural-resources-in-an-all-stock-transaction/