Exxon Mobil (NYSE:XOM) said Wednesday it agreed to acquire Pioneer Natural Resources (NYSE:PXD) in an all-stock transaction valued at $59.5B, or $253/share, based on Exxon's closing price on October 5. The offer represents an 18% premium to Pioneer's (PXD) closing price on October 5 and a 9% premium to its prior 30-day volume-weighted average price. Under the deal terms, Pioneer (PXD) shareholders will receive 2.3234 Exxon (XOM) shares for each Pioneer share at closing. The implied total enterprise value of the transaction, including net debt, is ~$64.5B. Exxon (XOM) said its Permian Basin production volume would more than double to 1.3M boe/day as a result of the deal, which it expects will increase to ~2M boe/day in 2027; the company expects a cost of supply of less than $35/bbl from Pioneer's (PXD) assets. Exxon (XOM) -1.8% pre-market; Pioneer (PXD) +1.1%.

Posted by Suze at 2023-10-11 11:47:05 UTC