Acquisition of Pioneer Natural Resources by ExxonMobil

A historic merger reshapes the future of the US energy industry.

Share:

Pioneer-Exterieur

Comprehensive energy news coverage, updated nonstop

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

7-Day Pass

Up to 50 articles accessible for 7 days, with no automatic renewal

3 $/week*

FREE ACCOUNT

3 articles/month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 30,000 articles • 150+ analyses per week

The purchase of Pioneer Natural Resources by ExxonMobille, one of the leading producers of shale oil and gas in the United States, is valued at around $60 billion. Scheduled to close in the first half of 2024, the deal marks a major turning point for ExxonMobil, giving it a new position of strength in the Permian Basin, a strategic oil-producing region stretching across western Texas and southeastern New Mexico.

A historic merger

This is the largest acquisition for ExxonMobil since its merger with Mobil in 1999. The transaction will be all-equity, with a purchase price of $59.5 billion, based on ExxonMobil’s closing price on October 5. Including debt, the total value of the transaction is estimated at around $64.5 billion, according to information provided by the two companies.

Economic context

In 2022, ExxonMobil posted a record net profit of $55.7 billion, mainly due to the rise in hydrocarbon prices caused by the recovery in global demand and tensions over Russian oil supply. This strong financial performance left ExxonMobil with considerable liquidity, enabling it to complete this major transaction.

Dallas, Texas-based Pioneer Natural Resources, founded in 1997, employs over 2,000 people, according to its website. In 2022, the company posted net earnings of $7.8 billion, with sales of $24.29 billion.

Future implications

The merger between ExxonMobil and Pioneer Natural Resources could reshape the landscape of the US oil and gas industry. This acquisition will enable ExxonMobil to strengthen its position in the energy sector, particularly in shale, which continues to drive hydrocarbon production in the United States. However, it will also raise questions about the concentration of power in the energy sector and its impact on environmental sustainability.

In short, the merger between ExxonMobil and Pioneer Natural Resources represents a major operation in the American oil and gas industry. It marks a significant turning point for ExxonMobil, which consolidates its position in the energy sector with this acquisition. This operation has far-reaching implications for the future of the energy industry, and is sure to spark debate on its environmental and economic impact. Stay tuned for the latest developments in this merger.

Alnaft has signed two study agreements with Omani firm Petrogas E&P on the Touggourt and Berkine basins, aiming to update hydrocarbon potential in key oil-producing areas.
Import quotas exhaustion and falling demand push Chinese independent refineries to sharply reduce Iranian crude volumes, affecting supply levels and putting downward pressure on prices.
Serbian oil company NIS, partially owned by Gazprom, faces newly enforced US sanctions after a nine-month reprieve, testing the country's fuel supply chain.
US-based Chevron appoints Kevin McLachlan, a veteran of TotalEnergies, as its global head of exploration, in a strategic move targeting Nigeria, Angola and Namibia.
Lycos Energy finalises the sale of its Alberta assets for $60mn, planning an immediate $47.9mn cash distribution to shareholders and the launch of a share buyback programme.
Russian oil output moved closer to its OPEC+ allocation in September, with a steady rise confirmed by Deputy Prime Minister Alexander Novak.
Fuel shortages now affect Bamako, struck in turn by a jihadist blockade targeting petroleum flows from Ivorian and Senegalese ports, severely disrupting national logistics.
McDermott has signed a memorandum of understanding with PETROFUND to launch technical training programmes aimed at strengthening local skills in Namibia’s oil and gas sector.
The example of OML 17 highlights the success of an African-led oil production model based on local accountability, strengthening Nigeria’s position in public energy investment.
ExxonMobil has signed a memorandum of understanding with the Iraqi government to develop the Majnoon oil field, marking its return to the country after a two-year absence.
Crude prices rose following the decision by the Organization of the Petroleum Exporting Countries and its allies to increase production only marginally in November, despite ongoing signs of oversupply.
Cenovus Energy modifies terms of its acquisition of MEG Energy by increasing the offer value and adjusting the cash-share split, while reporting record third-quarter results.
Hungarian oil group MOL and Croatian operator JANAF are negotiating an extension of their crude transport agreement as the region seeks to reduce reliance on Russian oil.
Rail shipments of Belarusian gasoline to Russia surged in September as Moscow sought to offset fuel shortages caused by Ukrainian attacks on its energy infrastructure.
Denmark is intensifying inspections of ships passing through Skagen, a strategic point linking the North Sea and the Baltic Sea, to counter the risks posed by the Russian shadow fleet transporting sanctioned oil.
Nicola Mavilla succeeds Kevin McLachlan as TotalEnergies' Director of Exploration, bringing over two decades of international experience in the oil and gas industry.
Sahara Group is making a major investment in Nigeria with seven new drilling rigs, aiming to become the country’s top private oil producer by increasing output to 350,000 barrels per day.
Senegal aims to double its oil refining capacity with a project estimated between $2bn and $5bn, as domestic demand exceeds current output.
Chevron is working to restart several units at its El Segundo refinery in California after a fire broke out in a jet fuel production unit, temporarily disrupting regional fuel supplies.
Ethiopia has begun construction of its first crude oil refinery in Gode, a $2.5bn project awarded to GCL, aimed at strengthening the country’s energy security amid ongoing reliance on fuel imports.

All the latest energy news, all the time

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

7 DAY PASS

Up to 50 items can be consulted for 7 days,
without automatic renewal

3$/week*

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.