In a significant move set to reshape the energy sector, ExxonMobil has successfully merged with Pioneer Natural Resources Co., creating a powerhouse in the prolific Permian Basin. This strategic alliance unites Pioneer Natural Resources Co.’s extensive land holdings, entrepreneurial spirit, and profound industry insights with ExxonMobil’s robust financial stability, cutting-edge technologies, and unparalleled project development capabilities. The merger not only transforms ExxonMobil’s upstream portfolio by more than doubling its footprint in the Permian but also accelerates Pioneer’s ambitious sustainability goals.
The newly formed entity emerges as an unconventional energy leader, boasting the largest high-return development potential within the Permian Basin. With a combined acreage exceeding 1.4 million net acres across the Delaware and Midland basins, the merged company commands an estimated 16 billion barrels of oil equivalent in resources. This consolidation will see ExxonMobil’s Permian production capacity more than double, surging to 1.3 million barrels of oil equivalent per day (MOEBD) based on 2023 figures, with projections to reach approximately 2 MOEBD by 2027.
The synergy between Pioneer Natural Resources Co.’s premier Permian assets and deep understanding of the basin, coupled with ExxonMobil’s advanced technologies, financial muscle, and industry-leading project execution, is poised to yield substantial benefits. This combination is anticipated to generate double-digit returns through enhanced resource recovery, improved operational efficiencies, and a significantly reduced environmental impact.
“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,” commented Darren Woods, Chairman and CEO of ExxonMobil. He further emphasized the broader implications of the merger, stating, “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.”
Accelerating Environmental Progress in the Permian
A key aspect of the merger is the accelerated timeline for environmental responsibility. ExxonMobil is recognized for its industry-leading initiatives aimed at achieving net-zero Scope 1 and Scope 2 greenhouse gas emissions from its Permian unconventional operations by 2030. With the integration of Pioneer Natural Resources Co., ExxonMobil will extend its robust greenhouse gas reduction strategies to expedite Pioneer’s Scope 1 and 2 net-zero emissions target by an impressive 15 years, bringing the goal forward to 2035.
Furthermore, ExxonMobil will deploy its advanced technologies for meticulously monitoring, measuring, and mitigating fugitive methane emissions across the combined operations, aiming to significantly curtail methane emissions. Leveraging the combined operational capabilities and infrastructure, ExxonMobil also expects to substantially increase the utilization of recycled water in its Permian fracturing operations, targeting over 90% by 2030. This commitment to environmental stewardship underscores the merger’s focus on sustainable energy development alongside enhanced production.
About ExxonMobil: An Industry Leader
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 demands. 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 technologies aimed at reducing emissions.
ExxonMobil possesses an industry-leading portfolio of resources and holds a position as one of the largest integrated fuels, lubricants, and chemical companies globally. It also operates the most extensive CO2 pipeline network in the United States. Demonstrating its commitment to sustainability, ExxonMobil announced ambitious Scope 1 and 2 greenhouse gas emission-reduction plans for its operated assets in 2021, setting targets for 2030 relative to 2016 levels. These plans include significant reductions in greenhouse gas intensity, methane intensity, and flaring intensity across its operations. With ongoing technological advancements and supportive government policies, ExxonMobil aspires to achieve net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050, reinforcing its dedication to a sustainable energy future.
For further information, please visit exxonmobil.com and explore ExxonMobil’s Advancing Climate Solutions. Stay connected with ExxonMobil on LinkedIn, Instagram, and X.
This merger between ExxonMobil and Pioneer Natural Resources Co. represents a pivotal moment in the energy industry, combining scale, expertise, and a commitment to a more sustainable future.
