ExxonMobil closes on Pioneer deal

A Pioneer Natural Resources well site. The company is now part of ExxonMobil. The combined company has more than 1.4 million net acres in the Delaware and Midland basins. (Image: Pioneer Natural Resources)

ExxonMobil has closed its acquisition of Pioneer Natural Resources, saying the merger creates a 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’s Permian production volume will more than double to 1.3 million barrels of oil equivalent per day (MOEBD), based on 2023 volumes, and is expected to increase to approximately 2 MOEBD in 2027, based on initial estimates.

The Federal Trade Commission (FTC) approved the $60 billion deal but stipulated that Exxon bar former Pioneer CEO Scott Sheffield from the board, alleging “collusive” messages with OPEC+ members years ago aimed at limiting production.

Combining Pioneer’s differentiated Permian inventory and basin knowledge with ExxonMobil’s proprietary technologies, financial resources, and project execution excellence is expected to generate double-digit returns by recovering more resource, more efficiently and with a much lower environmental impact.

“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 CEO Darren Woods said. “The combination of our two companies benefits this country’s energy security and economy, and also furthers society’s environmental ambitions as we move Pioneer’s 2050 net zero goal to a 2035 plan.”