Pioneer Natural Resources To Buy Parsley Energy In $4.5 Bln Stock Deal - Quick Facts

Pioneer Natural Resources Co. (PXD) announced a definitive agreement to acquire all of the outstanding shares of Parsley Energy, Inc. (PE) in an all-stock transaction valued at approximately $4.5 billion. The total value for the transaction, inclusive of debt, is approximately $7.6 billion.

Parsley shareholders will receive a fixed exchange ratio of 0.1252 shares of Pioneer common stock for their each share owned. Pioneer will issue approximately 52 million shares of common stock in the transaction. After closing, existing Pioneer shareholders will own approximately 76% of the combined company, while existing Parsley shareholders will own 24%.

Pioneer expects this combination to drive annual synergies of $325 million and to be accretive on key financial metrics including cash flow and free cash flow per share, earnings per share and return on capital employed beginning in 2021.

This transaction is expected to close in the first quarter of 2021. Parsley's largest investor, Quantum Energy Partners, which owns 17% of outstanding shares, has executed a Voting and Support Agreement.

Pioneer's Board to be expanded to thirteen to include Parsley's CEO Matt Gallagher, and lead director A.R. Alameddine.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Drug major Pfizer has again expanded the earlier two recalls of its anti-smoking Drug Chantix (Varenicline) in the form of tablets, to now include all the lots, for the potential presence of nitrosamine impurity, N-Nitroso- varenicline, at or above the FDA interim acceptable intake limit (ADI), the U.S. Food and Drug Administration or FDA said in a statement. Department store chain Sears is closing down its last store located in its home state of Illinois, CNBC reported. The company, which was founded in Chicago in 1892, plans to shut the shop, located in Simon Property Group's Woodfield Mall, on November 14. Sears' parent company, Transformco, which also manages the real estate, said it plans to maximize the value of the Woodfield Mall property and Amazon said over 1 million people have applied for a job at the tech major as part of its Career Day 2021. Job seekers from more than 170 countries have participated in the virtual event. In addition, more than 2,000 Amazon recruiters offered 30,000 individual career coaching sessions with participants in a single day.
Follow RTT