As of April 7, 2023, there are reports that ExxonMobil is currently in early discussions with Pioneer Natural Resources concerning a potential acquisition. Pioneer is a key player in the oil-rich Permian Basin of West Texas and New Mexico, with approximately 920,000 net acres located solely in Texas. ExxonMobil considers the Permian Basin a crucial area for its growth strategy, and acquiring Pioneer would cement its dominance in the region and strengthen its presence in West Texas shale.
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Pioneer Wells Drilled Since 2022
ExxonMobil has set a goal to achieve net zero greenhouse gas emissions from its operated assets in the Permian Basin by 2030. To achieve this, the company will require well-designed policies and technological advancements that increase the availability and reliability of carbon-neutral power in the region, such as wind and solar energy. The company is committed to supporting the development of renewable energy projects through long-term purchase contracts. This net zero goal for the Permian Basin is part of ExxonMobil’s broader commitment to reducing greenhouse gas emissions and contributing to the goals of the Paris Agreement.
Recently, Pioneer acquired DoublePoint Energy for $6.4 billion, which solidified its position as the dominant player in the Permian region’s Midland Basin. Prior to this acquisition, Pioneer’s enterprise value was $36.73 billion. Continental Resources has also made a move in the Permian Basin by agreeing to purchase Pioneer’s Delaware Basin assets for $3.25 billion. The Permian Basin is a highly competitive area, with companies vying to acquire large blocks of contiguous acreage to gain economies of scale and efficiencies.
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