ExxonMobil is close to completing a $60 billion deal to acquire Pioneer Natural Resources and become the top US oil producer

 ExxonMobil is close to completing a $60 billion deal to acquire Pioneer Natural Resources and become the top US oil producer

According to the Wall Street Journal, the shale-focused Pioneer Natural Resources Co. is about to close a $60 billion agreement to be acquired by US natural gas firm ExxonMobil Corporation. The Wall Street Journal reported that Exxon will overtake other producers in the most productive US oil basin when the purchase was closed. Pioneer's market value stood at roughly $50 billion as of yesterday.

The agreement would also open the door for the oil giant's largest acquisition since its 1999 merger with Mobil Corp.

According to the article, despite a few minor issues, the agreement between two of the largest landowners in the Permian Basin of Texas and New Mexico will be finalized soon.

Exxon-Pioneer agreement potential results

With an output of around 1.2 million barrels per day, Exxon would surpass numerous OPEC countries as the largest oil field producer, according to a Bloomberg story citing the WSJ.

If the acquisition is completed, Exxon's inventory of premier drilling areas will also increase, ensuring low-cost, low-risk crude for its massive Gulf Coast refinery network long into the year 2050.

Exxon has been searching for purchases in the Permian for years, but time has been a problem.

As oil prices fell because to the epidemic, the company's finances suffered. Exxon was forced to borrow billions of dollars to pay shareholder dividends at the time because the corporation increased capital spending on big international projects.

However, Exxon's profits soared to a record $59 billion in 2022 after decreasing costs and reining in spending.

Exxon's CEO, Darren Woods, stated to investors in July of this year that the corporation would continue to evaluate prospective M&A but would remain "picky".

Scott Sheffield, the founder and CEO of Pioneer, however, might leave his position before the end of the year.

The shale revolution that turned the US into an oil superpower is credited to Sheffield, who has worked in the Permian since the 1970s.