The deal combines the largest U.S. oil company with one of the most successful names to emerge from the shale revolution.
The offer represents a 9% premium to Pioneer’s average price for the 30 days prior to Oct. 5, when reports of deal talks surfaced., will leave four of the largest U.S. oil companies in control of much of the Permian Basin shale field and its extensive infrastructure.“The market share of this combination appears to be under thresholds typically warranting action,” RBC Capital Markets analyst Scott Hanold said in a note.
Pioneer had bulked up through multibillion-dollar deals such as those of shale rivals DoublePoint Energy for $6.4 billion in 2021 and Parsley Energy for $7.6 billion in 2020 under CEO Sheffield.. Sheffield, who will join Exxon’s board after the deal closes, has announced his intention to retire from Pioneer at year-end.Sheffield will earn a $29-million exit package on the sale’s closing, and four other top Pioneer executives will receive about $42 million in severance pay, RBC estimated.
He faced heavy criticism for sticking to a heavy oil-dependent strategy as climate concerns became more pressing, with its energy transition efforts focused on reducing its own emissions. In July, Exxon agreed to a $4.9 billion all-stock deal for Denbury, a small U.S. oil firm with a network of carbon dioxide pipelines and underground storage. That acquisition was intended to bolster Exxon’s nascent low-carbon business.
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