Exxon Mobil Corp. Makes $59.5 Billion Purchase of Pioneer Natural Resources
In a landmark move, Exxon Mobil Corp. has announced its acquisition of Pioneer Natural Resources in a deal valued at a staggering $59.5 billion. This marks Exxon Mobil’s largest buyout since its acquisition of Mobil two decades ago, solidifying its commitment to fossil fuels despite the current surge in energy prices.
Under the terms of the agreement, Pioneer shareholders will receive 2.32 shares of Exxon for each Pioneer share they own. Both companies firmly believe that fossil fuels will continue to play a crucial role in the world’s energy transition, although the future rate of their utilization remains uncertain.
This acquisition significantly expands Exxon’s footprint in the Permian Basin, a significant oilfield spanning Texas and New Mexico. Last year alone, the Permian Basin accounted for 18% of all natural gas production in the United States. With this deal, the combined company is estimated to possess a staggering Permian resource of 16 billion oil equivalent barrels. Further, they anticipate doubling their Permian production volume to 1.3 million barrels of oil equivalent per day by 2023.
The transaction promises to bring several benefits to Exxon, including economies of scale, optimized drilling techniques, and reduced spending. These advantages will undoubtedly bolster Exxon’s position as a major player in the fossil fuel industry.
Pending approval from Pioneer shareholders, the deal is expected to close in the first half of next year. However, news of the acquisition has already made waves, causing Exxon’s stock to plummet more than 4%. Investors anxiously await the outcome of this monumental purchase and its potential for shaping the future of Exxon Mobil Corp.
Exxon Mobil’s bold move to acquire Pioneer Natural Resources demonstrates its unwavering dedication to fossil fuels and capitalizes on the opportunities presented by the Permian Basin’s vast resources. As the energy industry continues to evolve, Exxon Mobil is determined to remain at the forefront, driving innovation and growth within the fossil fuel sector.
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