Exxon Mobil agrees to buy rival Pioneer Natural Resources

Exxon Mobil

Washington, The Gulf Observer: Exxon Mobil agreed to buy U.S. rival Pioneer Natural Resources 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, combines the largest U.S. oil company with one of the most successful names to emerge from the shale revolution that turned the U.S. into the world’s largest oil producer in little more than a decade.

Exxon Chief Executive Darren Woods said in an interview the combination provides a big opportunity for synergies among the companies.

“We basically closed this deal fairly quickly,” Woods said after approaching Pioneer’s Scott Sheffield two weeks ago, “and started talking about the complementary nature of both of our businesses.”

The merged company could add 700,000 barrels per day of oil and gas (boepd) production within four years of the deal closing, to 2 million boepd. It also aims to cut greenhouse gas emissions and increase oil output per well by combining Exxon technology with Pioneer’s lower cost of operations, Exxon said.