Exxon Mobil: Why The Pioneer Acquisition Could Be Darren Woods’ Magnum Opus


  • In October, Exxon Mobil has announced to acquire Permian driller Pioneer Resources for $65bn in stock, sparking a wave of follow-up among competitors, most notably Chevron’s $60bn acquisition of Hess.
  • The deal positions Exxon Mobil as the undisputed number 1 in the Permian Basin and on US soil and perfectly highlights management’s shift towards shorter-cycle and higher security, domestic barrels.
  • Through leveraging Pioneer’s high-quality, continuous acreage in the Midland Basin, Exxon expects tangible synergies worth a total lifetime value of $17bn, immediately making the deal accretive to EPS and ROCE.
  • Especially when compared to Chevron, the deal comes at a highly attractive price point, with Exxon paying just 4.4x Pioneer’s FY24 expected EBITDA post-synergies as opposed to 7.0x for Chevron.

Drone view captures the Permian Basin at sunset, revealing the sprawling landscape of fracking drilling and oil rigs that stretch out towards the horizon


A few weeks ago, I published my note “Exxon Mobil: Superior Asset Base and Execution to fuel Returns throughout the Cycle” in which I initiated coverage of Exxon Mobil, laying out my general investment thesis of Exxon Mobil (

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