Key Takeaways
- ExxonMobil said it completed its deal to buy Pioneer Natural Resources valued at nearly $60 billion after U.S. regulators set conditions.
- Including debt, ExxonMobil is committing about $64.5 billion to the purchase of Pioneer.
- Pioneer CEO Scott Sheffield was barred from joining ExxonMobil’s board in order to meet Federal Trade Commission conditions.
- The acquisition is expected to more than double ExxonMobil’s production volume in the key Permian Basin oil field.
ExxonMobil (XOM) said Friday it completed its deal to buy Pioneer Natural Resources valued at nearly $60 billion after getting approval from U.S. regulators. Including debt, ExxonMobil is committing about $64.5 billion to the purchase of Pioneer.
FTC Approval Won as Pioneer CEO Scott Sheffield Barred From Board
The Federal Trade Commission (FTC) had challenged the deal over concerns that as part of ExxonMobil’s board, Pioneer CEO Scott Sheffield could be involved in “collusive activity that would potentially raise crude oil prices, leading American consumers and businesses to pay higher prices for gasoline, diesel fuel, heating oil and jet fuel.” It accused Sheffield of trying to “align production across the key Permian Basin oil field in West Texas and New Mexico with OPEC+.” Officials required that in order to get approval for the acquisition, Sheffield could not hold a board position.
Deal To More Than Double ExxonMobil’s Permian Basin Production
ExxonMobil said the merger would more than double its Permian Basin production volume to 1.3 million barrels of oil equivalent per day (MOEBD) based on last year’s volumes, and it expects that to rise to about 2 MOEBD in 2027.
ExxonMobil CEO Darren Woods said adding Pioneer gives the company “a greater opportunity to deploy our technology and deliver operating and capital efficiency for long-term shareholder value.”
Shares of ExxonMobil were down 0.7% at $115.38 as of 12:20 p.m. ET Friday, but have gained more than 15% so far this year.
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