Pioneer Natural Resources Company and Parsley Energy, Inc. introduced that they’ve entered right into a definitive settlement beneath which Pioneer will purchase the entire excellent shares of Parsley in an all-stock transaction valued at roughly $four.5 billion as of October 19, 2020. Under the phrases of the settlement, Parsley shareholders will obtain a set trade ratio of zero.1252 shares of Pioneer frequent inventory for every share of Parsley frequent inventory owned. The whole worth for the transaction, inclusive of Parsley debt assumed by Pioneer, is roughly $7.6 billion.
Pioneer Natural Resources and Parsley Energy are two US firms primarily based respectively in Irving and Austin, Tx.
Scott D. Sheffield, Pioneer’s President and CEO acknowledged, “This transaction creates an unmatched unbiased vitality firm by combining two complementary and premier Permian property, additional strengthening Pioneer’s management place inside the upstream vitality sector. Parsley’s high-quality portfolio in each the Midland and Delaware Basins, when added to Pioneer’s peer-leading asset base, will rework the investing panorama by creating an organization of distinctive scale and high quality that leads to tangible and sturdy worth for buyers.
This mixture is anticipated to drive annual synergies of $325 million and to be accretive to money move per share, free money move per share, earnings per share and company returns starting within the first yr, creating an much more compelling funding proposition. Further, Pioneer’s emphasis on environmental stewardship aligns with Parsley’s tradition of sustainable operations. The addition of Parsley’s high-quality property enhances Pioneer’s funding framework by enhancing our free money move profile and strengthening our means to return capital to shareholders. We stay up for integrating Parsley into Pioneer and persevering with our historical past of sturdy execution.”

Matt Gallagher, Parsley’s President and CEO acknowledged, “The mixture of Parsley and Pioneer creates a corporation set to thrive as we forge a powerful new hyperlink on the low finish of the worldwide value curve. With neighboring acreage positions positioned completely within the low-cost, high-margin Permian Basin, the economic logic of this transaction is sound. Furthermore, the Pioneer staff shares our perception clear returns-focused mindset is the perfect instrument to compete for capital inside the broader market. Sustainable free money move and rising return of capital at the moment are funding conditions for the vitality sector and this mixture strengthens these paths for our shareholders. Finally, I want to personally thank each worker of Parsley Energy for his or her position within the evolution of this firm – from working just a few dozen vertical wells in 2008 to a worldwide management place in E&P operations as we speak.”
S. Wil VanLoh, Jr., a Parsley director and the Founder and Chief Executive Officer of Quantum Energy Partners, Parsley’s largest shareholder, commented, “The inevitable consolidation within the Permian marches on and I couldn’t consider a greater mixture of property than Pioneer and Parsley. This mixture will present Parsley shareholders new structural benefits together with a decrease value of capital, a fortified stability sheet, economies of scale, and enhanced ESG capabilities, whereas amplifying the entire relative strengths of our standalone mannequin. We stay up for partnering with the Pioneer staff as they cement their place because the premier unbiased E&P.”
(Source and picture: Pioneer Natural Resources)

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