Oct 11, 2023 - Energy & Environment

Exxon to buy Pioneer for $59.5B, reshaping U.S. oil industry

Exxon gas station photo.

Photo by Michael M. Santiago/Getty Images.

ExxonMobil announced Wednesday it will buy U.S. shale driller Pioneer Natural Resources for $59.5 billion in stock.

Why it matters: This would be ExxonMobil's largest deal since its two namesakes got married, and would give it the Permian Basin's most prolific player.

  • It also could produce an antitrust face-off with a White House that's already at odds with Big Oil.

By the numbers: The merger would more than double Exxon's production in the Permian Basin to 1.3 million barrels of oil-equivalent per day, with expected growth to 2 million daily in 2027.

  • The tie-up will merge Pioneer's 850,000 acres in the Permian with Exxon's 570,000 acres.
  • The proposed deal is a $59.5 billion all-stock merger at $253-per-share that rises to a value of $64.5 billion once debt is included.

The bottom line: Exxon buying Pioneer would be an audacious move in a proven region, enabled by strong balance sheets after the oil price run-up in recent years.

  • If completed, it's the biggest step yet in ongoing consolidation of the shale patch.

Editor's note: This is a breaking news story. Check back for updates.

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