Deal Insight
ExxonMobil buys Pioneer for US$64.5 billion
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
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
-
Upstream assets
- ExxonMobil plans to increase production and value via unique operational changes
- Details
-
Deal analysis
- 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
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Upsides and risks
- Upsides
- Risks
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Strategic rationale
-
ExxonMobil
- Scale leadership: from Supermajor to Megamajor
- Tight oil leadership
- Boosting leading integration credentials
- Portfolio concentration impact
- Pioneer Natural Resources
- What next for consolidation?
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ExxonMobil
- 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:
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