US: Pioneer Natural Resources announces bolt-on acquisition of DoublePoint Energy in the Midland Basin
02 Apr 2021
Pioneer Natural Resourceshas entered into a definitive purchase agreement to acquire the leasehold interests and related assets of
DoublePoint Energy in a transaction valued at approx. $6.4 billion as of April 1, 2021, comprised of approx. 27.2 million shares of Pioneer common stock, $1 billion of cash and the assumption of approx. $0.9 billion of debt and liabilities.
Scott D. Sheffield, Pioneer’s CEO stated:
'DoublePoint has amassed an impressive, high quality footprint in the Midland Basin, comprised of tier one acreage adjacent to Pioneer’s leading position. We are pleased with their decision to become long-term partners with Pioneer in a transaction that will complement our unmatched position in the core of the Permian Basin. Pioneer will incorporate these assets into our investment model, migrating the assets from significant production growth to a free cash flow model, moderating growth for the U.S. shale industry and generating significant value for our shareholders.'