Pioneer Natural Resources nears $6 billion DoublePoint Energy deal

Pioneer, Energy, Oil and Gas, DoublePoint

By: Greg Roumeliotis – Reuters – Pioneer Natural Resources Co is nearing a deal to acquire oil producer DoublePoint Energy for more than $6 billion in cash and stock and expand its footprint in the Permian Basin, people familiar with the matter said on Thursday.

It would be Pioneer’s second significant acquisition in just over six months, after announcing in October it would buy Parsley Energy for $4.5 billion.

U.S. shale companies are on the hunt for acquisitions again, as they position themselves for the recovery in oil prices, with the value of U.S. crude rising 60% in the last six months. Consolidation allows them to cut costs so they can spend more on drilling and return cash to shareholders.

A deal between Pioneer and its private equity owners, which include Apollo Global Management Inc and Quantum Energy Partners, could be announced as soon as Friday, the sources said, requesting anonymity ahead of an official announcement.

Pioneer and DoublePoint did not immediately respond to requests for comment.

DoublePoint Energy was formed in 2018 by the combination of two existing companies owned by private equity firms – Double Eagle Energy Holdings III and FourPoint Energy. It had more than 70,000 acres spread across six Texas counties, according to the statement announcing the formation.

Based in Dallas, Pioneer focuses exclusively on oil and gas exploration in the Permian Basin. It has a market capitalization of about $36 billion.

The Permian Basin stretches across Western Texas and Southeastern New Mexico and is considered the heart of the U.S. shale industry.

Dealmaking in the region has been picking up. Last year, Diamondback Energy Inc agreed to buy QEP Resources and Guidon Operating for a combined $3.2 billion including debt, and ConocoPhillips announced the $9.7 billion acquisition of Concho Resources.

The crossroads of energy information for minerals owners in Oklahoma. Where you can: See recent prices of mineral and lease transactions. Receive an offer to lease or buy your minerals.

Find relevant news stories on the most active areas, including the Scoop and Stack Plays.

Data Powered by Oseberg

Today’s E&P world is rapidly shifting towards data-driven decision making, but those decisions are only as good as the data behind them. Access Oseberg's deep, accurate, and detailed pool of insight-rich industry data with our powerful analytical and search tools and get the clearest picture of what's happening as soon as it happens.


This web site is maintained solely for the personal use of our visitors. Although we at Oklahoma Minerals have made all reasonable efforts to provide accurate information, we cannot guarantee the completeness, timeliness or accuracy of the information contained herein. Nothing in this web site contains investment advice. Any decisions based upon the information contained in this web site are the sole responsibility of the user.

Copyright © 2021

To Top
Oil and gas continues to show signs of recovery in WyomingRead More