logo
Plus   Neg
Share
Email

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
Santa Cruz Bicycles LLC has recalled certain model year 2020 bicycles with aluminum frames citing fall risks, according to the U.S. Consumer Product Safety Commission. The recall involves about 2,900 units of model year 2020 Auminum Santa Cruz and Juliana Bicycles. In addition, about 216 were sold in Canada. AstraZeneca is mulling an additional global trial to confirm the 90% efficacy rate of its Covid-19 vaccine candidate at lower dosage, Bloomberg news quoted Chief Executive Officer Pascal Soriot as saying. In an interview, Soriot noted that instead of adding the trial to an ongoing U.S. process, the company might launch a fresh study to evaluate efficacy of lower dosage of its vaccine that perform U.S. airline Delta Air Lines, Inc. and its Italian codeshare partner Alitalia are planning to launch quarantine-free, COVID-free flights between U.S. and Europe through new testing protocols, starting in December. In a statement, Delta said it has signed deals with airports and governments eliminating quarantine requirements on COVID-tested flights connecting Atlanta and Rome.
Follow RTT