Exxon secures lead in top US oilfield with $60 billion buy of shale rival Pioneer
By Sabrina Valle and Anirban Sen
NEW YORK/HOUSTON (Reuters) -Exxon Mobil agreed to buy U.S. rival Pioneer Natural Resources (NYSE:PXD) in an all-stock deal valued at $59.5 billion that would make it the biggest producer in the largest U.S. oilfield and secure a decade of low-cost production.
The deal, valued at $253 a share, would be Exxon's biggest since its $81 billion purchase of Mobil Oil in 1998, years before the shale boom began.
It combines the largest U.S. oil company with one of the most successful names to emerge from the shale revolution that turned the country into the world's largest oil producer in little more than a decade.
The deal is set to close in early 2024, the companies said on Wednesday. Pioneer shares were up 2.4% at $242.90 in premarket trading. Exxon shares fell 1%.
The $253 per share offer represents a 9% premium to Pioneer's average price for the 30 days prior to Oct. 5, when reports of the deal surfaced.
Exxon has pulled itself out of a period marked by deep losses and huge debts in the last two years by slashing costs, selling dozens of assets and benefiting from high energy prices spurred by Russia's invasion of Ukraine.
The deal will leave four of the largest U.S. oil companies in control of much of the Permian Basin shale field and its extensive oilfield infrastructure.
Still, antitrust experts told Reuters last week that Exxon and Pioneer stood a good chance of completing their deal, even though they would face heavy scrutiny. This is because they could argue that even as the largest Permian producer, together they will account for a small fraction of a vast global market for oil and gas.
Exxon Chief Executive Darren Woods has rebuffed investor and political pressure to shift
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