(Finance) – After the rumors of the last few days, the official announcement has arrived on the largest acquisition in over 20 years for Exxon, i.e. since the 1999 deal with which it merged with Mobil. Exxon Mobil has in fact announced a definitive agreement for the acquisition of the competitor Pioneer Natural Resourcesboosting the US oil and gas producer at the top of the largest oil field in the United States.
Fusion is aall-stock deal worth $59.5 billion, or $253 per share, based on ExxonMobil’s closing price on October 5, 2023. Under the terms of the agreement, Pioneer shareholders will receive 2.3234 shares of ExxonMobil for each share of Pioneer. The implied total enterprise value of the transaction, including net debt, is approximately $64.5 billion.
The fee represents a premium of approximately 18% compared to Pioneer’s undisturbed closing price on October 5, i.e. before rumors began to circulate in the US media, and a 9% premium compared to its average price of the previous 30 days.
Together, the companies will have a resource equivalent to 16 billion barrels of oil in Permian. At close, ExxonMobil’s Permian production volume is expected to 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.
“Pioneer is a clear leader in the Permian with a unique asset base and people with deep industry knowledge. The combined capabilities of our two companies will provide a creation of much greater long-term value to what each company is capable of doing on a stand-alone basis,” he said Darren Woods, CEO of ExxonMobil.