Exxon Mobil Corporation and Pioneer Natural Resources agreed that ExxonMobil would acquire Pioneer for $59.5 billion, ExxonMobil announced on Wednesday.
The merger is an all-stock transaction valued at $253 per share, based on ExxonMobil’s closing price on Oct. 5.
Under the terms of the agreement, Pioneer shareholders will receive 2.3234 ExxonMobil shares for each Pioneer share at the close of trade.
According to ExxonMobil’s statement, “the implied total enterprise value of the transaction, including net debt, is approximately $64.5 billion.’
Commenting on the agreement, ExxonMobil Chairman and CEO Darren Woods hailed Pioneer as a clear leader in the Permian Basin with a unique asset base and people with deep industry knowledge.
‘The combined capabilities of our two companies will provide long-term value creation well in excess of what either company is capable of doing on a standalone basis,’ Woods added.
Pioneer Chief Executive Officer Scott Sheffield said the consolidation of ExxonMobil and Pioneer would create a diversified energy company with the largest footprint of high-return wells in the Permian Basin.
‘As part of a global enterprise, Pioneer, our shareholders and our employees will be better positioned for long-term success through a size and scale that spans the globe and offers diversity through product and exposure to the full energy value chain,’ he added.
