Later this week, Pioneer Natural Resources, the Irving, Texas-based American energy giant mostly focused on hydrocarbon exploration in Cline Shale, a part of Spraberry Trend of Permian Basin, had agreed to a $6.4 billion cash-and-stock takeover deal for its privately-held regional rival DoublePoint Energy, suggesting further step-up in consolidations among US shale producers.
In point of fact, US shale industry has been witnessing a sharp acceleration in takeover deals over recent months as crude oil prices had recovered later last year, eventually opening up a window of opportunity for the companies with lofty balance sheet to engulf a slew of debt-strapped US shale operators.
Nevertheless, several analysts had welcomed the latest rollups in US shale industry, as the takeovers of fast-growing oil companies likes of DoublePoint Energy would offset market concerns that the US shale would again lead to a supply glut and founder oil futures’ prices.
Pioneer Natural Resources acquires DoublePoint in $6.4bn cash-and-stock deal
Besides, under the terms of a cash-and-stock $6.4 billion acquisition deal for DoublePoint, which has been the largest for a privately-held US oil producer in a decade, Pioneer Natural Resources, the largest acreage holder in Permian Basin, would be able to add more than one million net acres in properties in the Permian Basin.
Aside from that, adding that the Delaware-incorporated US energy giant, Pioneer Natural Resources, would turn down DoublePoint’s production following the acquisition while curbing out its active drilling rigs to five from seven, the company said in a statement that it was expected to conclude the takeover deal by June this year.
Meanwhile, elucidating Pioneer’s plans for DoublePoint assets, nan Enverus’ analyst Dittmar said, “Pioneer plans to transition DoublePoint to a moderate-growth, cash flow generating business. What we’re seeing is a maturing of the shale industry and its re-focusing on financial discipline and capital returns through rollups”.