ExxonMobil has announced a definitive agreement to merge with Pioneer Natural Resources in a landmark deal that will significantly transform its upstream portfolio. This strategic acquisition more than doubles ExxonMobil’s footprint in the Permian Basin, creating an unparalleled unconventional business poised for substantial high-return development. By combining Pioneer’s extensive acreage, entrepreneurial spirit, and deep industry knowledge with ExxonMobil’s financial strength, advanced technologies, and industry-leading project execution capabilities, the merged entity is set to redefine operational efficiency and environmental stewardship in the Permian. Furthermore, the merger will accelerate Pioneer Natural Resources’ net-zero Permian goal, transitioning it from 2050 to a more ambitious 2035 target.
The union of ExxonMobil and Pioneer Natural Resources establishes an Unconventional business with the largest and most promising high-return development opportunities within the Permian Basin. The combined company will command over 1.4 million net acres across the Delaware and Midland basins, boasting an estimated 16 billion barrels of oil equivalent resources. This acquisition will see ExxonMobil’s Permian production volume more than double, reaching 1.3 million barrels of oil equivalent per day (MOEBD) based on 2023 figures. Initial projections anticipate a further increase to approximately 2 MOEBD by 2027, underscoring the significant production potential unlocked by this merger.
The synergy between Pioneer Natural Resources’ distinguished Permian inventory and basin expertise, and ExxonMobil’s proprietary technologies, robust financial resources, and exceptional project execution, is projected to yield double-digit returns. This will be achieved through enhanced resource recovery, improved operational efficiencies, and a significantly reduced environmental impact. The integration of these two industry leaders is expected to optimize resource extraction while minimizing ecological footprint.
“This premier, tier-one asset is a natural fit for our Permian portfolio, offering us an expanded platform to deploy our advanced technology and achieve significant operating and capital efficiency, ultimately driving long-term shareholder value,” stated ExxonMobil Chairman and CEO Darren Woods. “The strategic combination of our two companies not only bolsters this country’s energy security and strengthens the economy but also propels society’s environmental objectives forward as we accelerate Pioneer’s net zero goal to a 2035 plan.”
Enhanced Environmental Stewardship
ExxonMobil is at the forefront of the industry with its ambitious plans to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions from its Permian unconventional operations by 2030. Following the completion of the merger, ExxonMobil will extend its comprehensive greenhouse gas reduction strategies to Pioneer Natural Resources’ operations, accelerating Pioneer’s Scope 1 and 2 net-zero emissions target by an impressive 15 years. Furthermore, ExxonMobil will deploy its cutting-edge technologies for the rigorous monitoring, precise measurement, and effective mitigation of fugitive methane emissions, aiming to substantially reduce methane emissions across the combined companies’ operations. In addition, by leveraging combined operational capabilities and infrastructure, ExxonMobil aims to elevate the proportion of recycled water utilized in its Permian fracturing operations to exceed 90% by 2030, further demonstrating a commitment to sustainable practices.
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 needs. The corporation’s core business segments – Upstream, Product Solutions, and Low Carbon Solutions – deliver essential products that underpin modern living, including energy, chemicals, lubricants, and innovative lower emissions technologies. ExxonMobil possesses an industry-leading portfolio of resources and is recognized as one of the largest integrated fuels, lubricants, and chemical companies globally. Notably, ExxonMobil owns and operates the most extensive CO2 pipeline network in the United States. In 2021, ExxonMobil announced its comprehensive Scope 1 and 2 greenhouse gas emission-reduction plans for operated assets by 2030, benchmarked against 2016 levels. These plans target significant reductions, including a 20-30% decrease in corporate-wide greenhouse gas intensity, a 40-50% reduction in greenhouse gas intensity of upstream operations, a 70-80% reduction in corporate-wide methane intensity, and a 60-70% reduction in corporate-wide flaring intensity. Driven by technological advancements and supported by consistent and clear government policies, ExxonMobil is committed to achieving net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050, demonstrating its long-term vision for a sustainable energy future.
To explore further, please visit exxonmobil.com and ExxonMobil’s Advancing Climate Solutions.
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