Deal Insight

ExxonMobil buys Pioneer for US$64.5 billion

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After months of rumours, ExxonMobil announced the acquisition of Permian powerhouse Pioneer Natural Resources for US$64.5 billion. Closely followed by Chevron's Hess deal, this is the largest upstream deal, in nominal terms, since Shell acquired BG for US$82 billion in 2015. Occidental's purchase of Anadarko for US$57 billion is the only other deal of similar scale over the last eight years. It is ExxonMobil's largest deal since its creation through Exxon's US$87 billion merger with Mobil in 1999. The acquisition will help shift ExxonMobil's global upstream portfolio down the cost curve. This is a deal driven by growth and optimisation rather than consolidating and cutting back - a trend that has characterised most recent tight oil M&A. The landmark move establishes ExxonMobil as the dominant operator in the world's premier tight oil play.

Table of contents

  • Executive summary
  • Transaction details
    • ExxonMobil plans to increase production and value via unique operational changes
    • Details
    • Base case valuation
    • Upside scenario aligned with ExxonMobil's target goals
    • What's expensive for one (stock deal), isn't expensive for another
    • Modelling assumptions
    • Upsides
    • Risks
    • ExxonMobil
      • Scale leadership: from Supermajor to Megamajor
      • Tight oil leadership
      • Boosting leading integration credentials
      • Portfolio concentration impact
    • Pioneer Natural Resources
    • What next for consolidation?
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 14 images and tables including:

  • Executive summary: Table 1
  • Combined Permian leasehold
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2
  • Permian asset breakeven comparison
  • Upstream assets: Table 1
  • Permian Implied Long-Term Oil Price
  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Deal analysis: Table 3
  • Key assets: emissions intensity by operating cash margin (2024-2033)
  • The Majors' global oil and gas production
  • Combined drilling inventory
  • 2023E Majors and Large Cap portfolio concentration by asset cash flow

What's included

This report contains:

  • Document

    ExxonMobil buys Pioneer for US$64.5 billion

    PDF 2.77 MB