DALLAS (Nexstar) – Pioneer Natural Resources has announced an agreement to acquire Parsley Energy in a $7.6 billion deal.
Pioneer will acquire approximately $4.5 billion in an all-stock transaction. Parsley shareholders will receive a fixed exchange ratio of 0.1252 shares of Pioneer common stock for each share of Parsley common stock owned.
The value of $7.6 billion is inclusive of the debt assumed by Pioneer on account of Parsley.
The all-stock transaction constitutes a 7.9% premium to Parsley shareholders based on unaffected closing share prices on October 19, 2020. Pioneer will issue about 52 million shares of common stock in the transaction.
After closing, existing Pioneer shareholders will own approximately 76% of the combined company and existing Parsley shareholders will own about 24% of the combined company.
The transaction was unanimously approved by the Boards of Directors of both Pioneer and Parsley and is expected to close in the first quarter of 2021.
Parsley’s largest investor, Quantum Energy Partners has executed a Voting and Support Agreement in connection with the transaction.
For more information on the details surrounding the acquisition, follow this link.
To download the press release from Pioneer and Parsley, click the link below.