Exxon completes $60 billion acquisition of Pioneer

On By Vaseline

Exxon Mobil Corporation has completed its acquisition of Pioneer Natural Resources, marking a monumental milestone in the energy industry. With a price tag of $60 billion, this deal ranks as one of the largest oil and gas acquisitions in recent history, reshaping the industry landscape.

The completion of this mega deal significantly strengthens Exxon’s presence in the coveted Permian Basin. This strategic move effectively doubles Exxon’s footprint in the region, cementing its position as the dominant player in one of the country’s most productive oil-producing areas.

The acquisition gives Exxon access to more than 1.4 million net acres in the Delaware and Midland basins in the Permian.

According to Exxon forecasts, the combined entity is poised for a substantial increase in production to as much as 1.3 million barrels per day. Looking ahead, Exxon expects further growth, with production expected to reach an impressive 2 million barrels per day by 2027, underscoring the long-term strategic value of this acquisition.


However, the road to finalizing this groundbreaking deal was not without challenges. To gain approval from competition authorities, Exxon made concessions to address concerns about competition in the market. One notable compromise involved an agreement not to appoint Scott Sheffield, Pioneer’s former CEO, to the board of directors.

The decision came in the wake of allegations against Sheffield and Pioneer accusing them of conspiring with officials of the Organization of the Petroleum Exporting Countries (OPEC) to manipulate oil prices. These allegations, which have been referred to the Justice Department, further complicated the deal, requiring Exxon to carefully navigate regulatory scrutiny to complete the acquisition.

Despite these obstacles, Exxon’s successful completion of the Pioneer acquisition underlines its commitment to strategic expansion and strengthens its position as a key player in the global energy market. As the industry continues to evolve, Exxon’s bold move sets the stage for improved growth and competitiveness in the years to come.

By Julianne Geiger for Oilprice.com


More top reading from Oilprice.com: