The deal will give Pioneer access to approximately 97,000 contiguous net acres of mostly undrilled land, bringing Pioneer’s total position to more than 1 million net acres, the company said.
He expects the new acreage to produce around 100,000 barrels of oil a day by the end of the second quarter.
“It is somewhat surprising to see Pioneer announce another major acquisition so soon after the Parsley deal, but the company may have felt that the assets were simply too adjusted to their current position to pass up,” Andrew Dittmar, senior mergers and acquisitions analyst . with data analytics firm Enverus, it said in emailed comments.
Pioneer expects the merger to help it save an estimated $ 175 million in annual costs, or a total of approximately $ 1 billion over 10 years. That will likely allow the company to return more cash to shareholders.
Pioneer shares closed more than 3.5% higher on Thursday.
The deal is expected to close in the second quarter of 2021 and includes 27.2 million Pioneer shares, $ 1 billion in cash and the assumption of approximately $ 900 million of debt and liabilities.