ExxonMobil has bought a rival for $60billion in stock, just days after its married head of shale oil was arrested at a hotel in Texas on sexual assault charges.
The oil and gas corporation has acquired Pioneer Natural Rescources in an all-stock transaction valued at $59.5 billion, or the equivalent of $253 per share.
The announcement comes just days after David Scott, 49, the head of Exxon’s shale oil business, was reported to police by one of two women he was with at La Quinta Inn & Suites hotel in Magnolia, Texas.
As a senior vice president of its shale operations, he would not necessarily be involved in merger talks, a person familiar with the matter said.
Under the terms of the merger agreement, Pioneer shareholders will receive 2.3234 shares of ExxonMobil for each Pioneer share at closing.
A press release said: ‘The implied total enterprise value of the transaction, including net debt, is approximately $64.5 billion.’
Married ExxonMobil boss David Scott, 49, has been accused of sexual assault by one of two women he was at a hotel with last week
Pioneer, who has more than 850,000 net acres in the Midland Basin to extract natural gas, will combine their assets with ExxonMobil’s 570,000 net acres in Delaware and the Midland Basin – bringing the number of equivalent barrels of oil they will have to 16 billion.
ExxonMobil Chairman and CEO Darren Woods said: ‘Pioneer is a clear leader in the Permian with a unique asset base and people with deep industry knowledge.
‘The combined capabilities of our two companies will provide long-term value creation well in excess of what either company is capable of doing on a standalone basis.
‘Their tier-one acreage is highly contiguous, allowing for greater opportunities to deploy our technologies, delivering operating and capital efficiency as well as significantly increasing production.
‘As importantly, as we look to combine our companies, we bring together environmental best-practices that will lower our environmental footprint and plan to accelerate Pioneer’s net-zero plan from 2050 to 2035.’
Pioneer, who has more than 850,000 net acres in the Midland Basin to extract natural gas, will combine their assets with ExxonMobil’s 570,000 net acres in Delaware and the Midland Basin – bringing the number of equivalent barrels of oil they will have to 16 billion (stock image)
Under the terms of the merger agreement, Pioneer shareholders will receive 2.3234 shares of ExxonMobil for each Pioneer share at closing
Pioneer Chief Executive Officer Scott Sheffield added: ‘The combination of ExxonMobil and Pioneer creates a diversified energy company with the largest footprint of high-return wells in the Permian Basin.
‘As part of a global enterprise, Pioneer, our shareholders and our employees will be better positioned for long-term success through a size and scale that spans the globe and offers diversity through product and exposure to the full energy value chain.
‘The consolidated company will maintain its leadership position, driving further efficiencies through the combination of our adjacent, contiguous acreage in the Midland Basin and our highly talented employee base, with the improved ability to deliver durable returns, creating tangible value for shareholders for decades to come.’
David Scott, the married senior vice president, was picked up by cops at the $109-a-night hotel, near his company’s headquarters in Spring, on Thursday morning.
Scott has been at ExxonMobil for 26 years and is currently in the middle of a billion dollar merger deal with a rival company
Scott was arrested at the $109-a-night La Quinta Inn and Suites by Wyndham around 30 minutes from his company’s headquarter in Spring, Texas
The arrest came after one of the women left the room and called police from the lobby, a hotel worker who saw a security video told Reuters.
Now ExxonMobil has revealed to DailyMail.com he has been suspended pending the criminal probe.
A company spokeswoman said: ‘All ExxonMobil employees, officers and directors are accountable for observing the highest standards of integrity and code of conduct in support of the Company’s business and otherwise.
‘We are aware of the allegations and cannot comment on a personal matter; however, we can say that this individual will not continue work responsibilities as the investigation proceeds. ‘
Scott’s LinkedIn profile shows he has been with Exxon for more than 26 years and has been involved in some of its most important oil and gas projects around the world.