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  • 1440 Daily Digest

Exxon Mobil's Megadeal

Exxon Mobil Corp. has agreed to buy Pioneer Natural Resources for $59.5B in an all-stock deal, or $253 per share, making it the largest oil-and-gas merger in more than 20 years since Exxon bought Mobil for $75B in 1999.

The deal allows Exxon Mobil to expand its footprint in the Permian Basin, the highest-producing oil field in the US, which spans West Texas and southeastern New Mexico (see overview). With Pioneer being the Permian's largest well operator, the combined entity would have 16 billion barrels of oil equivalent in the Permian and double Exxon Mobil's daily production to 1.3 million barrels of oil equivalent. The daily figure will rise to 2 million barrels by 2027. The transaction is expected to close in the first half of 2024 once it receives regulatory approval.

The move comes three months after Exxon Mobil, which had a record profit of $56B in 2022, bought pipeline operator Denbury for $4.9B to harness its carbon capture capabilities (see 101).

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