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.

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