The deal will give Pioneer access to approximately 97,000 contiguous net acres of mostly undrilled land, bringing Pioneer’s total position to more than one million net acres, the company said.
He expects the new acreage to produce about 100,000 barrels of oil per day by the end of the second quarter.
“It’s somewhat surprising to see Pioneer announce another major acquisition so soon after Parsley’s deal, but the company may have felt the assets were just too close to where they are today to be left out. “, Andrew Dittmar, Senior M&A Analyst. with data analytics company Enverus, said in email comments.
Pioneer expects the merger to save it about $ 175 million in annual costs, or a total of about $ 1 billion over 10 years. This will likely allow the company to return more liquidity to shareholders.
Pioneer stock closed more than 3.5% on Thursday.
The deal is expected to close in the second quarter of 2021 and includes 27.2 million Pioneer shares, $ 1 billion in cash and the assumption of approximately $ 900 million in debt and liabilities.