DALLAS, Texas (Nexstar) – In another bid, Pioneer Natural Resources has announced an agreement to acquire DoublePoint Energy.
Pioneer would acquire the leasehold interests and related assets of DoublePoint Energy in the deal, valued at 46.4 billion.
The acquisition would expand Pioneer’s footprint in the Permian Basin to about 1 million net acres, yielding about 1000,000 barrels of oil equivalent per day by the later portion of the second quarter.
“DoublePoint has amassed an impressive, high quality footprint in the Midland Basin, comprised of tier-one acreage adjacent to Pioneer’s leading positions,” Pioneer CEO Scott Sheffield said in a statement on April 1. “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 gathering significant value for our shareholders.”
Pioneer will issue about 27.2 million shares of common stock in the transaction with an additional $1 billion of cash.
If approved, Pioneer would opwn about 89 percent of the combined company. The deal is expected to close in the second quarter.