ExxonMobil buys Pioneer Natural Resources

Deal more than doubles larger company’s Basin operations

An array of pumpjacks operate near the site of a new oil and gas well being drilled Friday, April 8, 2022, in Midland, Texas. ExxonMobil Corp. is buying Pioneer Natural Resources in an all-stock deal valued at $59.5 billion, its largest buyout since acquiring Mobil two decades ago, creating a colossal fracking operator in West Texas. (Odessa American File Photo)

ExxonMobil’s $60-billion acquisition of Pioneer Natural Resources is a strong indication that the future of the Permian Basin is secure, says Permian Basin International Oil Show President Larry Richards, who hopes that Pioneer’s community support across the region will be continued by the bigger company.

“If anyone was worried about the long-term viability of the Permian oil and gas industry, this acquisition speaks volumes,” Richards said. “It’s an unequivocal statement of confidence in our industry and region and a long-term investment by one of the most strategic companies in the world.

“I personally hate to see it because Pioneer has been such a leader in adopting new technology and so incredibly gracious in their support of our local communities,” he said. “Hopefully ExxonMobil will continue both trends and embrace the entrepreneurial spirit that has been so important to Pioneer’s success story.

“Pioneer’s Permian team is the greatest asset that ExxonMobil is acquiring and I sure hope they realize that early and often as their integration progresses.”

An ExxonMobil spokesman said the deal transforms the company’s upstream portfolio “by more than doubling its Permian footprint and creating an industry-leading, high-quality, high-return undeveloped U.S. unconventional inventory position.

“It combines Pioneer’s sizeable acreage, entrepreneurial culture and deep industry expertise with ExxonMobil’s balance-sheet strength, advanced technologies and industry-leading project development capabilities,” the spokesman said. “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 barrels of oil equivalent resource in the Permian. At close ExxonMobil’s Permian production volume will more than double to 1.3 million barrels of oil equivalent per day and that is expected to increase to approximately two MOEBD 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, benefiting the American economy and its consumers,” the spokesman said.