Shale Producer Pioneer Natural to Buy Parsley Energy for $4.5 Billion
(Reuters) — Pioneer Natural Resources said on Tuesday it would buy smaller rival Parsley Energy Inc in a deal valued at about $4.5 billion, the latest consolidation among U.S. shale producers amid this year's pandemic-driven oil rout.
Many U.S. shale companies have been mired in losses due to weak crude prices, which have hovered around $40 a barrel since June. But unlike in past downturns, companies have struggled to raise new capital to restructure heavy debts.
The all-stock deal is expected to add annual synergies of $325 million, and Pioneer shareholders will own about 76% of the combined company.
On Monday, ConocoPhillips agreed to buy U.S. shale oil producer Concho Resources Inc for $9.7 billion.
Parsley, focused on the Permian basin, will receive a fixed exchange ratio of 0.1252 shares of Pioneer Natural for each share held.
Related News
Related News
- Williams' $1 Billion Gas Pipeline Blocked by U.S. Appeals Court, Derailing Five-State Project
- Texas Waha Hub Gas Prices Plunge to Record Lows, Hit Negative Territory
- U.S. Buys Nearly 5 Million Barrels of Oil for Emergency Stockpile
- Williams Begins Louisiana Pipeline Construction Despite Ongoing Legal Dispute with Energy Transfer
- U.S. Appeals Court Strikes Down Controversial Biden Pipeline Safety Rules
- U.S. to Buy 4.5 Million Barrels of Oil to Replenish Strategic Petroleum Reserve
- Kurdish Oil Smuggling to Iran Flourishes
- U.S. Court Overturns Alaska Oil Lease Sale, Halting Energy Development
- Second Gas Pipeline Rupture in Texas’ Reeves County Raises Environmental Concerns
- Mid-Year Global Forecast: Midstream Responding to Demand from LNG Projects
Comments