The landscape of US energy is set for a seismic shift as ExxonMobil has announced its merger with Pioneer Natural Resources Company, a move that dramatically expands ExxonMobil’s upstream portfolio and more than doubles its footprint in the Permian Basin. This strategic acquisition unites Pioneer’s extensive acreage, entrepreneurial spirit, and deep-rooted industry knowledge with ExxonMobil’s robust financial strength, cutting-edge technologies, and unparalleled project development capabilities. Furthermore, the merger accelerates environmental ambitions by transitioning Pioneer’s net-zero Permian goal from 2050 to a more aggressive 2035 target.
Creating a Permian Basin Giant
This merger effectively establishes an Unconventional business poised to lead in the Permian Basin, boasting the largest high-return development potential in the region. The combined entity will control over 1.4 million net acres within the Delaware and Midland basins, encompassing an estimated 16 billion barrels of oil equivalent in resources. ExxonMobil’s production volume in the Permian is projected to more than double, reaching 1.3 million barrels of oil equivalent per day (MOEBD) based on 2023 figures, with anticipated growth to approximately 2 MOEBD by 2027, according to initial assessments.
Synergies and Enhanced Efficiency
The synergy created by merging Pioneer Natural Resources Company’s distinguished Permian inventory and deep basin understanding with ExxonMobil’s proprietary technologies, substantial financial backing, and industry-leading project execution prowess is expected to yield significant double-digit returns. This will be achieved through enhanced resource recovery, improved operational efficiency, and a considerably reduced environmental impact.
Environmental Leadership and Net-Zero Acceleration
ExxonMobil is committed to environmental stewardship and has set industry-leading targets to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions from its Permian unconventional operations by 2030. With the Pioneer merger finalized, ExxonMobil will extend its proven greenhouse gas reduction strategies to expedite Pioneer’s Scope 1 and 2 net-zero emissions goal by fifteen years. Moreover, ExxonMobil will deploy its advanced technologies for meticulously monitoring, measuring, and mitigating fugitive methane emissions across the combined operations. Leveraging integrated operational capabilities and infrastructure, the company also aims to elevate the utilization of recycled water in its Permian fracturing operations to exceed 90% by 2030.
Strategic Rationale and Shareholder Value
“This premier, tier-one asset represents a natural extension of our Permian portfolio, providing us with an enhanced platform to deploy our advanced technologies and realize both operating and capital efficiencies, ultimately driving long-term shareholder value,” stated ExxonMobil Chairman and CEO Darren Woods. “The integration of our two companies not only bolsters this nation’s energy security and strengthens the economy but also propels society’s environmental objectives forward as we advance Pioneer’s net zero target to a 2035 timeline.”
About ExxonMobil
ExxonMobil stands as one of the world’s preeminent 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, including energy, chemicals, lubricants, and lower emissions technologies that underpin modern living. ExxonMobil possesses an industry-leading resource portfolio and ranks among the largest integrated fuels, lubricants, and chemical companies globally. Notably, ExxonMobil owns and operates the most extensive CO2 pipeline network in the United States. ExxonMobil has announced robust Scope 1 and 2 greenhouse gas emission-reduction plans for its operated assets by 2030, benchmarked against 2016 levels, and is committed to achieving net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050, contingent on technological advancements and supportive government policies. For further information, please visit exxonmobil.com and ExxonMobil’s Advancing Climate Solutions.
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