ExxonMobil said it completed its acquisition of Pioneer Natural Resources, in a May 3 release.
The largest deal for the oil major since the merger of Exxon and Mobil was valued at US$59.5 billion, Exxon had said in its October 2023 announcement of the definitive agreement to acquire.
It said the merger creates an Unconventional business with the largest, high-return development potential in the Permian Basin. The combined company’s more than 1.4 million net acres in the Delaware and Midland basins have an estimated 16 billion barrels of oil equivalent resource. ExxonMobil said its Permian production volume will more than double to 1.3 million barrels of oil equivalent per day (boe/d), based on 2023 volumes, and is expected to increase to approximately 2 million boe/d in 2027, based on initial estimates.
Exxon said that combining Pioneer’s differentiated Permian inventory and basin knowledge with its proprietary technologies, financial resources, and industry-leading project execution excellence is expected to generate double-digit returns by recovering more resources, more efficiently and with a much lower environmental impact.
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“This premier, tier-one asset is a natural fit for our Permian portfolio and gives us a greater opportunity to deploy our technology and deliver operating and capital efficiency for long-term shareholder value,” ExxonMobil Chairman and Chief Executive Officer (CEO) Darren Woods said.
Exxon plans to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions from its Permian unconventional operations by 2030. With the merger closed, it intends to accelerate Pioneer’s Scope 1 and 2 net-zero emissions goal by 15 years. It said it will also apply its industry-leading technologies for monitoring, measuring and addressing fugitive methane to reduce the combined companies’ methane emissions. In addition, using combined operating capabilities and infrastructure, ExxonMobil expects to increase the amount of recycled water used in its Permian fracturing operations to more than 90% by 2030.
Rystad Energy estimates mergers and acquisitions (M&A) could top US$214 billion in 2024.
