Exxon Mobil (XOM.N) has acquired Pioneer Natural Resources (PXD.N) for $59.5 billion, solidifying its position as the leading producer in the largest US oilfield. The deal, priced at $253 per share, combines Exxon, the largest US oil company, with Pioneer, a successful player in the shale revolution that transformed the US into the world's largest oil producer in just over a decade.

Exxon's CEO, Darren Woods, emphasized the synergies resulting from this acquisition and the rapid deal closure. Post-merger, the combined company aims to boost daily oil and gas production by 700,000 barrels within four years, with a target of 2 million barrels per day. Furthermore, they intend to reduce greenhouse gas emissions while increasing oil output efficiency by leveraging Exxon's technology and Pioneer's cost-effective operations.

Pioneer's share price received a 9per cent premium in the deal, and Exxon plans to finalize it early in 2024. RBC Capital Markets analyst Scott Hanold suggested that the market share of this combination may not trigger antitrust concerns.

Exxon's move comes as the Permian Basin shale field, known for its low production costs, becomes a key focus. This acquisition represents Exxon's largest deal since its $81 billion purchase of Mobil Oil in 1998. It surpasses Shell's $53 billion acquisition of BG Group in 2016, positioning Exxon as a significant player in the global liquefied natural gas market.

With Exxon's recovery from recent losses and debts through cost reduction, asset sales, and strong energy prices, it is well-prepared for this acquisition, aligning with the shift toward reducing emissions. Exxon's share price has rebounded, recently reaching an all-time high of $120 per share._ Reuters