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ExxonMobil expects approval for Pioneer acquisition this quarter

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Speaking in an interview with Bloomberg, Kathy Mikells, the Chief Financial Officer of ExxonMobil, said she expects that the Federal Trade Commission will give regulatory approval for Exxon’s acquisition of Pioneer Natural Resources by the end of June.

In its earnings release for the first quarter, the US-based oil major also said it expects to complete the deal by the end of the second quarter. Pioneer’s shareholders have already approved the deal, which is worth some $60 billion in stock, so the two companies are waiting for the green light from the antitrust authority.

ExxonMobil, which makes the Mobil DTE hydraulic oil, sees considerable earnings potential in combining its own 570,000 acres in the Permian with Pioneer’s 850,000 acres. It says this will give it an industry-leading portfolio of undeveloped unconventional assets in the United States. In a statement when the deal was announced, Darren Woods, the Chairman and CEO of ExxonMobil, said that Pioneer had contiguous tier-one acreage in the Permian:

“…allowing for greater opportunities to deploy our technologies, delivering operating and capital efficiency as well as significantly increasing production. As importantly, as we look to combine our companies, we bring together environmental best-practices that will lower our environmental footprint and plan to accelerate Pioneer’s net-zero plan from 2050 to 2035.”

When the deal closes, ExxonMobil’s production in the Permian will be 1.3 million barrels of oil equivalent per day (boed), more than double its average in 2023. It expects this to rise further to 2 million boed by 2027.

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