The landscape of US energy production is undergoing a significant shift as ExxonMobil finalizes its merger with Pioneer Natural Resources, creating a dominant force in the Permian Basin. This strategic move more than doubles ExxonMobil’s upstream portfolio in this critical region, combining Pioneer’s extensive acreage and operational expertise with ExxonMobil’s robust financial strength and technological prowess. The integration also accelerates environmental ambitions, transitioning Pioneer’s net-zero goal in the Permian from 2050 to a more aggressive 2035 target.
This merger establishes an unparalleled Unconventional business within the Permian Basin, boasting the largest high-return development potential. The combined entity now controls over 1.4 million net acres across the Delaware and Midland basins, holding an estimated 16 billion barrels of oil equivalent resources. ExxonMobil’s production volume in the Permian is set to more than double, reaching 1.3 million barrels of oil equivalent per day (MOEBD) based on 2023 figures, with projections to climb to approximately 2 MOEBD by 2027.
The synergy between Pioneer’s deep understanding of the Permian Basin and ExxonMobil’s advanced technologies and project execution capabilities is expected to unlock substantial value. By leveraging ExxonMobil’s proprietary technologies and financial resources, the merged company anticipates generating double-digit returns through enhanced resource recovery, improved operational efficiency, and a significantly reduced environmental footprint.
Darren Woods, Chairman and CEO of ExxonMobil, emphasized the strategic fit and broader benefits of this union: “This premier, tier-one asset is a natural fit for our Permian portfolio and gives us a greater opportunity to deploy our technology and deliver operating and capital efficiency for long-term shareholder value. The combination of our two companies benefits this country’s energy security and economy, and also furthers society’s environmental ambitions as we move Pioneer’s 2050 net zero goal to a 2035 plan.”
Environmental Leadership in the Permian
ExxonMobil is setting a new standard for environmental performance in the Permian Basin. The company already has ambitious plans to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions from its Permian unconventional operations by 2030. With the Pioneer merger, ExxonMobil is extending these aggressive environmental strategies to accelerate Pioneer’s net-zero emissions goal by 15 years.
Key to this environmental strategy is the deployment of ExxonMobil’s industry-leading technologies for methane detection and mitigation. By applying these advanced monitoring and measurement systems, the combined company will aggressively tackle fugitive methane emissions across its Permian operations. Furthermore, ExxonMobil aims to significantly increase the use of recycled water in its Permian fracturing operations, targeting over 90% recycled water usage by 2030 through optimized operating capabilities and infrastructure.
About ExxonMobil
ExxonMobil stands as one of the world’s largest publicly traded international energy and petrochemical corporations, dedicated to providing solutions that enhance quality of life and address society’s evolving energy and chemical needs.
Operating through its primary business segments – Upstream, Product Solutions, and Low Carbon Solutions – ExxonMobil delivers essential products including energy, chemicals, and lubricants, while pioneering lower emissions technologies. With an industry-leading resource portfolio, ExxonMobil is a global leader in integrated fuels, lubricants, and chemical manufacturing. Notably, ExxonMobil operates the largest CO2 pipeline network in the United States, underscoring its commitment to carbon capture and storage solutions. ExxonMobil has set clear emission-reduction targets, aiming to achieve net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050, with significant interim reductions planned for 2030.
For further information, please visit exxonmobil.com and explore ExxonMobil’s Advancing Climate Solutions. Stay connected with ExxonMobil through their social media channels on LinkedIn, Instagram, and X.
