ExxonMobil Finalizes Pioneer Natural Resources Acquisition

Exxon Mobil Corporation (NYSE: XOM) has officially completed its acquisition of Pioneer Natural Resources Company (NYSE: PXD), as announced on 3rd May 2024.

The merger between ExxonMobil and Pioneer forms an unconventional enterprise boasting the Permian Basin's largest potential for high-return development. With a collective ownership of over 1.4 million net acres in the Delaware and Midland basins, the combined company holds an estimated 16 billion barrels of oil equivalent resource. ExxonMobil's Permian production is set to more than double, reaching 1.3 million barrels of oil equivalent per day (MBOED) based on 2023 volumes, with projections suggesting an increase to approximately 2 MBOED by 2027, according to preliminary estimates.

By merging Pioneer's distinctive Permian assets and basin expertise with ExxonMobil's exclusive technologies, financial capabilities, and top-tier project execution proficiency, it is anticipated to yield double-digit returns. This collaboration aims to enhance resource recovery efficiency while significantly reducing environmental impact.

ExxonMobil Chairman and CEO Darren Woods remarked, "This exceptional, top-tier asset seamlessly complements our Permian portfolio, offering a prime avenue to leverage our technology and achieve operational and capital efficiency for sustained shareholder value. The integration of our two entities not only enhances the nation's energy security and economy but also advances our collective environmental objectives by accelerating Pioneer's net zero target from 2050 to 2035."

ExxonMobil aims to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions from its Permian unconventional operations by 2030, setting the industry standard. Following the merger's completion, ExxonMobil intends to expedite Pioneer's Scope 1 and 2 net-zero emissions target by 15 years by leveraging its established Permian greenhouse gas reduction strategies. Moreover, ExxonMobil plans to deploy its cutting-edge technologies for monitoring, measuring, and mitigating fugitive methane to decrease the combined companies' methane emissions. Furthermore, by harnessing their collective operational capabilities and infrastructure, ExxonMobil anticipates increasing the proportion of recycled water utilized in its Permian fracturing activities to over 90% by 2030.

ExxonMobil, a prominent publicly traded multinational energy and petrochemical firm, develops solutions that enhance quality of life and address society's evolving requirements. The company's core operations—Upstream, Product Solutions, and Low Carbon Solutions—deliver products vital for modern living, including energy, chemicals, lubricants, and technologies aimed at reducing emissions. With an extensive portfolio of resources, ExxonMobil stands as one of the world's largest integrated companies in fuels, lubricants, and chemicals. Additionally, the company owns and operates the largest CO2 pipeline network in the United States. In 2021, ExxonMobil unveiled its plans to reduce Scope 1 and 2 greenhouse gas emissions from operated assets by 2030, compared to 2016 levels. These plans include achieving a 20-30% reduction in corporate-wide greenhouse gas intensity, a 40-50% reduction in greenhouse gas intensity in upstream operations, a 70-80% reduction in corporate-wide methane intensity, and a 60-70% reduction in corporate-wide flaring intensity.