Pioneer Natural Resources Acquires Parsley Energy in All-Stock Deal

Updated 8 months ago

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.

Pioneer President & CEO

This transaction creates an unmatched independent energy company by combining two complementary and premier Permian assets, further strengthening Pioneer’s leadership position within the upstream energy sector. Parsley’s high-quality portfolio in both the Midland and Delaware Basins, when added to Pioneer’s peer-leading asset base, will transform the investing landscape by creating a company of unique scale and quality that results in tangible and durable value for investors.