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HomeOil and GasExxonMobil Completes Pioneer Acquisition, Doubling Permian Footprint

ExxonMobil Completes Pioneer Acquisition, Doubling Permian Footprint

5/3/2024

(P&GJ) — ExxonMobil has finalized its acquisition of Pioneer Natural Resources Company, marking a significant transformation in its upstream portfolio.

The acquisition, finalized on May 3, sees ExxonMobil more than doubling its footprint in the Permian Basin, combining Pioneer’s substantial acreage and industry expertise with ExxonMobil’s technological prowess and financial strength.

This merger creates an unconventional business with unparalleled development potential in the Permian Basin. With over 1.4 million net acres in the Delaware and Midland basins, the combined company boasts an estimated 16 billion barrels of oil equivalent resource. ExxonMobil’s Permian production is set to soar, with volumes expected to reach 1.3 million barrels of oil equivalent per day by 2027.

By merging Pioneer’s Permian inventory and basin knowledge with ExxonMobil’s resources and technologies, the combined entity anticipates generating double-digit returns while recovering resources more efficiently and with reduced environmental impact.

ExxonMobil’s Chairman and CEO, Darren Woods, expressed enthusiasm about the acquisition, highlighting its potential to enhance shareholder value and contribute to the country’s energy security and economy.

“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,” 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.”

Moreover, the merger aligns with environmental ambitions, accelerating Pioneer’s net-zero emissions goal from 2050 to 2035.

In terms of environmental impact, ExxonMobil has committed to achieving net-zero Scope 1 and Scope 2 greenhouse gas emissions from its Permian operations by 2030. Leveraging its expertise, ExxonMobil aims to accelerate Pioneer’s emissions goals and reduce methane emissions through advanced monitoring and operational practices. Additionally, the combined operational capabilities will drive increased water recycling in fracturing operations, with a target of exceeding 90% by 2030.

The acquisition signifies a strategic move for ExxonMobil, positioning the company as a major player in the Permian Basin while reinforcing its commitment to environmental stewardship and long-term value creation.

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