American oil company ExxonMobil completed the acquisition of Pioneer Natural Resources Company, one of the main companies dedicated to shale in that country. Now the firm will have a broader portfolio of exploration and production assets and will become the company with the largest inventory of undeveloped unconventional wells in the United States.
With the acquisition, completed on May 3, ExxonMobil doubles its presence in the Permian Basin. With more than 1.4 million net acres in the Delaware and Midland basins, the combined company has an estimated resource of 16 billion barrels of oil equivalent.
ExxonMobil’s Permian production expected to soarwith volumes reaching 1.3 million barrels of oil equivalent per day by 2027. By merging Permian inventory and Pioneer Basin knowledge with ExxonMobil’s resources and technologies, the combined entity anticipates generating returns of double digits while recovering resources more efficiently.
ExxonMobil Chairman and CEO Darren Woods said: enthusiasm for the acquisition and highlighted its potential to enhance shareholder value and contribute to energy security and the country’s economy. “This premier asset is a natural fit for our Permian portfolio and provides us with greater opportunity to deploy our technology.”
Besides, “Delivers operational and capital efficiency to generate value for long-term shareholders. “The combination of our two companies benefits this country’s energy security and economy, and also advances society’s environmental ambitions as we move Pioneer’s 2050 net zero goal to a plan for 2035,” Woods noted.
Besides, Merger aligns with environmental goals by accelerating net-zero emissions goal from 2050 to 2035, as ExxonMobil has committed to achieving zero Scope 1 and Scope 2 emissions from its Permian operations by 2030.
ExxonMobil aims to accelerate Pioneer’s emissions targets and reduce methane emissions through advanced monitoring and operational practices. “In addition, the combined operational capabilities will drive greater water recycling in fracturing operations, with the goal of exceeding 90% by 2030,” ExxonMobil indicated.
