Pioneer Natural Resources

Last updated
Pioneer Natural Resources Company
Company type Subsidiary
NYSE: PXD
Industry Petroleum industry
Founded1997;27 years ago (1997)
Headquarters Irving, Texas, U.S.
Key people
 Richard P. Dealy, President & CEO
Products
Production output
617 thousand barrels of oil equivalent (3,770,000 GJ) per day (2022)
RevenueIncrease2.svg US$24.294 billion (2022)
Increase2.svg US$7.845 billion (2022)
Total assets Decrease2.svg US$35.740 billion (2022)
Total equity Decrease2.svg US$22.541 billion (2022)
Number of employees
2,213 (December 2023)
Parent ExxonMobil
Website pxd.com
Footnotes /references
[1]

Pioneer Natural Resources Company, headquartered in Irving, Texas, was a company engaged in hydrocarbon exploration. It operates in the Cline Shale, which is part of the Spraberry Trend of the Permian Basin, where the company is the largest acreage holder. [1] [2] [3] Pioneer is presently undergoing an acquisition by ExxonMobil, which in October 2023 agreed to acquire the company in the largest merger in the energy industry in 20 years; closing is expected in the first half of 2024. [4] [5]

Contents

The company is ranked 164th on the Fortune 500. [6]

As of December 31, 2022, the company had 2.376  billion barrels of oil equivalent (1.454×1010 GJ) of proved reserves, of which 41% was petroleum, 23% was natural gas liquids, and 28% was natural gas. In 2022, the company produced 649 thousand barrels of oil equivalent (3,970,000 GJ) per day, of which 58% was petroleum, 23% was natural gas liquids, and 19% was natural gas. [1]

History

Pioneer Natural Resources was created in 1997 by the merger of Parker & Parsley Petroleum Company and MESA Inc., owned by T. Boone Pickens. [7]

In May 2016, CEO and chairman Scott D. Sheffield was succeeded by Timothy Dove. Sheffield returned to the roles in 2019 after Dove's retirement. [8] [9] In January 2024, Richard P. Dealy was named as CEO. [10]

Divestitures and acquisitions

Pioneer has been involved in many acquisitions in widely-publicized deals occasionally totaling to over one billion dollars. Examples include the 2004 acquisition of Evergreen Resources for $2.1 billion, the 2021 acquisitions of Parsley Energy for $4.5 billion and DoublePoint Energy for $6.4 billion, and the smaller acquisition of Carmuse Industrial Sands in 2012 for $297 million. [11] [12] [13] [14]

#YearAcquisition / DivestitureBuyer / SellerPriceDescription of AssetsRef(s).
1May 2004AcquisitionEvergreen Resources Inc.$2.1 billion in cash and stockNatural gas assets in Colorado [15]
2April 2012AcquisitionCarmeuse Industrial Sands$297 millionProducer of Hickory frac sand [14]
3May 2013Divestiture Sinochem Group $1.7 billion40% interest in approximately 207,000 net acres (84,000 net hectares) leased in horizontal Wolfcamp Shale [16]
4October 2013DivestitureCaelus Energy Alaska$550 millionInterests in Alaska. In 2002, Pioneer made discoveries in its offshore Oooguruk field, west of Prudhoe Bay, Alaska. In 2008, Pioneer became the first independent operator to produce oil on the Alaska North Slope. [17] [18]
5August 2014Divestiture Linn Energy $340 millionNon-producing assets in the Hugoton Basin [19]
6June 2015Divestiture Enterprise Products Partners $2.15 billionMidstream joint venture with Reliance Industries for assets in the Eagle Ford Group. JV was formed in 2010. [20] [21]
7June 2016Acquisition Devon Energy $3.35 billion28,000 acres in the Midland Basin [22]
8March 2017DivestitureUndisclosed$266 million2,000 acres in Martin County, Texas [23]
9January 2021AcquisitionParsley Energy$7 billion in stockAssets in the Permian Basin [13]
10April 2021AcquisitionDoublePoint Energy$6.4 billion in cash and stockAssets in the Midland Basin [12]

Acquisition by ExxonMobil

In April 2023, Pioneer itself became the subject of acquisitions when the energy giant ExxonMobil expressed interest in acquiring Pioneer. If the deal ultimately proceeds, ExxonMobil would become the largest producer of shale gas in the Permian Basin, incentivizing further consolidation of the shale gas industry in the United States. Upon the news breaking, other shale gas firms, such as Diamondback Energy and Devon Energy experienced surges in their stock price. [24]

ExxonMobil announced their intent to acquire Pioneer in a all-stock deal for $59.5 billion on October 11, 2023. [25] The deal would be the largest in the energy industry in nearly 20 years. [26]

In May 2024, the Federal Trade Commission (FTC) approved ExxonMobil's acquisition of Pioneer. [27] The FTC's approval was, however, accompanied by a consent order alleging that former Pioneer CEO Scott D. Sheffield colluded with OPEC to raise oil prices and making the merger conditional on Sheffield's being barred from joining ExxonMobil's board of directors or serving as an advisor to Exxon after the merger. [28]

Antitrust lawsuit

In January 2024, a class action lawsuit was filed by drivers in three US states accusing Pioneer, along with seven other oil and gas producers, of an illegal price-fixing scheme to constrain production of shale oil that led to American drivers paying more for gasoline than they would have in a competitive market. [29] [30]

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References

  1. 1 2 3 "Pioneer Natural Resources Company 2022 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ↑ "Wolfcamp shale graduates to 'world class' play". Oil & Gas Journal . August 12, 2013.
  3. ↑ "Midland Basin Map". United States Geological Survey. November 15, 2016.
  4. ↑ "Exxon Mobil to buy Pioneer Natural for $59.5 billion, doubling down on fossil fuels as energy prices surge". PBS NewsHour . October 11, 2023.
  5. ↑ Eaton, Collin; Morenne, Benoît (October 11, 2023). "Exxon to Buy Pioneer in $60 Billion Deal to Create Shale Giant" . The Wall Street Journal .
  6. ↑ "Pioneer Natural Resources". Fortune.
  7. ↑ Cropper, Carol Marie (April 8, 1997). "Mesa Is to Merge With Parker & Parsley". The New York Times .
  8. ↑ "Pioneer Natural Resources Company Chairman and CEO Scott D. Sheffield to Retire; Timothy L. Dove Named Successor" (Press release). Business Wire. May 19, 2016.
  9. ↑ "Pioneer Natural Resources CEO to retire". American City Business Journals . February 22, 2019.
  10. ↑ "Pioneer Natural Resources Announces that Richard P. Dealy Commences Role as Chief Executive Officer". Business Wire . 2024-01-02. Archived from the original on 2024-01-02. Retrieved 2024-05-04.
  11. ↑ "Pioneer and Evergreen Announce $2.1 Billion Merger" (Press release). Business Wire. May 4, 2004.
  12. 1 2 "Pioneer Natural Resources Announces Bolt-On Acquisition of DoublePoint Energy in the Midland Basin" (Press release). Business Wire. April 1, 2021.
  13. 1 2 "Pioneer Natural Resources Completes Acquisition of Parsley Energy Following Stockholder Approvals" (Press release). Business Wire. January 12, 2021.
  14. 1 2 "Pioneer Natural Resources Announces Closing of Carmeuse Industrial Sands Acquisition" (Press release). Business Wire. April 2, 2012.
  15. ↑ "Pioneer and Evergreen in $2.1 Billion Energy Merger". TheStreet.com . May 4, 2004.
  16. ↑ "Pioneer Natural Resources Announces Closing of $1.7 Billion Horizontal Wolfcamp Shale Transaction with Sinochem" (Press release). Business Wire. May 31, 2013.
  17. ↑ "Pioneer Natural Resources Announces Sale of Alaska Subsidiary to Caelus Energy Alaska for $550 Million" (Press release). Business Wire. October 25, 2013.
  18. ↑ "Pioneer sells Alaska holdings for $550M". Alaska Journal of Commerce . October 25, 2013.
  19. ↑ "LINN Energy Announces $340 Million Acquisition From Pioneer Natural Resources" (Press release). GlobeNewswire. August 4, 2014.
  20. ↑ "Pioneer Natural Resources Announces $1.15 Billion Eagle Ford Shale Joint Venture with Reliance Industries" (Press release). June 24, 2010.
  21. ↑ "Pioneer Natural Resources Announces Sale of Eagle Ford Shale Midstream Business for $2.15 Billion" (Press release). Business Wire. June 1, 2015.
  22. ↑ "Pioneer Natural Resources Company to Acquire Approximately 28,000 Midland Basin Acres for $435 Million and to Add 5 Horizontal Rigs During the Second Half of 2016" (Press release). Business Wire. June 15, 2016.
  23. ↑ "Pioneer Natural Resources Company Announces Sale of Northeastern Martin County Acreage for $266 Million" (Press release). Business Wire. March 15, 2017.
  24. ↑ "Shale Firms Jump on Report of Exxon's Interest in Pioneer". Yahoo Finance. Retrieved 2023-04-10.
  25. ↑ "Exxon Mobil to buy Pioneer Natural for $59.5 billion, doubling down on fossil fuels as energy prices surge". PBS NewsHour. 2023-10-11. Retrieved 2023-10-11.
  26. ↑ Morenne, Collin Eaton and Benoît. "Exxon to Buy Pioneer in $60 Billion Deal to Create Shale Giant". WSJ. Retrieved 2023-10-11.
  27. ↑ Pequeño IV, Antonio (2024-05-02). "FTC Will Approve Exxon's $60 Billion Merger With Pioneer—With One Caveat". Forbes . Retrieved 2024-05-04.
  28. ↑ The Associated Press (2024-05-02). "FTC bars former Pioneer CEO in Exxon Mobil deal, saying he colluded with OPEC". NPR . Retrieved 2024-05-04.
  29. ↑ Scarcella, Mike (2024-01-16). "Drivers sue US shale oil producers over alleged price-fixing scheme". Reuters . Archived from the original on 2024-01-21. Retrieved 2024-04-28.
  30. ↑ Kennedy, Charles (2024-01-16). "Lawsuit Accuses U.S. Shale of Cartel Behavior". OilPrice.com. Archived from the original on 2024-01-16. Retrieved 2024-04-28.
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