ExxonMobil has significantly expanded its upstream portfolio through a strategic merger with Pioneer Natural Resources, effectively more than doubling its footprint in the Permian Basin. This acquisition unites Pioneer’s extensive acreage, entrepreneurial spirit, and deep-rooted industry knowledge with ExxonMobil’s robust financial standing, cutting-edge technologies, and proven capabilities in large-scale project development. A key element of this merger is the acceleration of environmental objectives, transitioning Pioneer’s previous 2050 net-zero target in the Permian to an ambitious 2035 goal.
The consolidation of ExxonMobil and Pioneer creates a powerhouse in unconventional energy, boasting the largest and most promising high-return development opportunities within the Permian Basin. The combined entity now commands over 1.4 million net acres across the Delaware and Midland basins, holding an estimated 16 billion barrels of oil equivalent in resources. This merger will see ExxonMobil’s Permian production capacity more than double, reaching 1.3 million barrels of oil equivalent per day (MOEBD) based on 2023 figures, with projections indicating a rise to approximately 2 MOEBD by 2027.
The synergy between Pioneer’s in-depth Permian inventory and basin-specific expertise, and ExxonMobil’s advanced technologies, financial strength, and exceptional project execution, is anticipated to yield substantial double-digit returns. This will be achieved through enhanced resource recovery, improved operational efficiency, and a significantly reduced environmental impact.
“This premier, tier-one asset is a natural strategic fit for our Permian portfolio, offering us an expanded platform to deploy our advanced technologies and achieve significant operating and capital efficiencies, ultimately driving long-term shareholder value,” stated Darren Woods, Chairman and CEO of ExxonMobil. “The combination of ExxonMobil and Pioneer is not only beneficial for the energy security and economic strength of the United States but also accelerates our collective environmental ambitions by advancing Pioneer’s net zero goal by fifteen years to 2035.”
Environmental Impact and Sustainability
ExxonMobil is committed to achieving net-zero Scope 1 and Scope 2 greenhouse gas emissions from its Permian unconventional operations by 2030, setting an industry-leading benchmark. Following the completion of the merger, ExxonMobil will extend its established greenhouse gas reduction strategies to Pioneer’s operations, accelerating the timeline for achieving net-zero Scope 1 and 2 emissions by 15 years. Furthermore, ExxonMobil’s deployment of advanced technologies for monitoring, measuring, and mitigating fugitive methane emissions will be crucial in reducing the combined companies’ overall methane footprint. Operationally, the integration will also facilitate increased utilization of recycled water in Permian fracturing activities, targeting over 90% recycled water usage by 2030.
About ExxonMobil
ExxonMobil stands as one of the world’s largest publicly traded international energy and petrochemical corporations, dedicated to developing solutions that enhance quality of life and address society’s evolving energy and chemical needs. With core business segments spanning Upstream, Product Solutions, and Low Carbon Solutions, ExxonMobil provides essential products including fuels, chemicals, and lubricants, while also advancing lower emissions technologies. The company possesses an industry-leading resource portfolio and operates as one of the largest integrated fuels, lubricants, and chemical enterprises globally. Notably, ExxonMobil owns and operates the most extensive CO2 pipeline network in the United States. ExxonMobil has set clear emission-reduction targets, aiming for net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050, underpinned by interim 2030 goals. More information can be found at exxonmobil.com and ExxonMobil’s Advancing Climate Solutions.
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