Pioneer Natural Resources entered into a definitive agreement in October 2020 to acquire all the outstanding shares of Parsley Energy in an all-stock transaction valued at $4.5 billion. Parsley shareholders will receive 0.1252 shares of Pioneer common stock for each share of Parsley common stock. The total value, including assumed debt, is around $7.6 billion. The combination is expected to create annual cost savings of $325 million with operational savings driven by shared facilities, overlapping operations, scale efficiencies, and share water infrastructure.
The combined company will have a combined asset base of 930,000 net acres with no federal acreage and a production base of 328,000 barrels of oil per day and 558,000 barrels of oil equivalent per day. This will increase Pioneer's proved reserves by 65%. Pioneer will issue 52 million shares of common stock at a 7.9% premium to the closing share price on October 19, 2020. Quantum Energy Partners has executed an agreement in support of the deal. Parsley CEO Matt Gallagher and lead director A.R. Alameddine will join the Pioneer board. Goldman Sachs and Morgan Stanley are advising Pioneer while Credit Suisse and Wells Fargo advise Parsley.