ExxonMobil stock reacts after the oil giant agrees to merge with Pioneer Natural Resources

The U.S. oil and gas giant ExxonMobil has announced that it intends to acquire the Texas-based petroleum and natural gas company Pioneer Natural Resources in a deal valued at $59.5 billion. Here’s what you need to know.

What’s happened? ExxonMobil has announced its intentions to buy Pioneer Natural Resources. The deal is valued at $59.5 billion, according to a press release from ExxonMobil.
Why is ExxonMobil acquiring Pioneer Natural Resources? In short, ExxonMobil wants more land area to extract natural resources from, and it’s buying up Pioneer Natural Resources to get it. Specifically, Pioneer has over 850,000 net acres in the Midland Basin, located in Texas and New Mexico. ExxonMobil says that after the merger, it will “more than double” its Permian production volume to “1.3 million barrels of oil equivalent per day.”
What about the environment? ExxonMobil is pitching the merger as a benefit to the environment. The company says that, due to the merger, it “intends to leverage its Permian greenhouse gas reduction plans to accelerate Pioneer’s net zero emissions plan by 15 years, to 2035.”
How is the merger being transacted? It’s an all-stock deal. Under the terms of the deal, Pioneer Natural Resources investors will get 2.3234 shares of ExxonMobil for each Pioneer share they own at the closing of the deal.
How has ExxonMobil’s stock reacted to the news? ExxonMobil stock (XOM) is currently down nearly 2.5% to $107.71 in premarket trading as of the time of this writing. 
How has Pioneer’s stock reacted to the news? Pioneer Natural Resources stock (PXD) is currently up almost 2% to $241.95 per share in premarket trading as of the time of this writing. 
What has ExxonMobil said about the merger? Chairman and CEO Darren Woods said in a prepared statement, “Pioneer is a clear leader in the Permian with a unique asset base and people with deep industry knowledge. The combined capabilities of our two companies will provide long-term value creation well in excess of what either company is capable of doing on a standalone basis.”
What has Pioneer Natural Resources said? In a prepared statement, Pioneer CEO Scott Sheffield said, “The combination of ExxonMobil and Pioneer creates a diversified energy company with the largest footprint of high-return wells in the Permian Basin.”
When will the merger become finalized? The deal is expected to close in the first half of 2024.