Oct. 11 (UPI) -- ExxonMobil and Pioneer Natural Resources said Wednesday ExxonMobil will acquire Pioneer in an all-stock $59.5 billion transaction. Including net debt, the total deal will be approximately $64.5 billion.
The merger will add Pioneer's more than 850,000 net acres in the Midland Basin stretching from western Texas into southeastern New Mexico to ExxonMobil's oil field of 570,000 acres in the same region of the United States.
When the merger deal closes, the companies will have an estimated 16 billion barrels of oil equivalent resource in those regions. According to ExxonMobil, the deal will mean the company's production volume would more than double to 1.3 million barrels of oil equivalent per day.
"Pioneer is a clear leader in the Permian 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," said ExxonMobil Chairman and CEO Darren Woods in a statement.
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The oil-rich Permian refers to a geologic period that spans 47 million years -- from 299 to 251 million years ago, a period of the largest mass extinction recorded in the history of life on Earth.
"The combination of ExxonMobil and Pioneer creates a diversified energy company with the largest footprint of high-return wells in the Permian Basin," Pioneer CEO Scott Sheffield said in a statement.
Sheffield added that the consolidated company 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."
According to ExxonMobil, the company plans to achieve net-zero Scope 1 and Scope 2 greenhouse emissions from its Permian unconventional operations by 2030. The merger will include accelerating Pioneer's net zero emissions plans by 15 years, to 2035.
Both corporate boards of directors have approved the merger.
The deal is subject to regulatory review and approval and Pioneer shareholders must also approve the deal, which is expected to close in the first half of 2024.
