Pioneer Natural Resources Acquires DoublePoint Energy’s Assets for $6.4 Billion
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Pioneer Natural Resources has entered into a definitive purchase agreement to acquire the leasehold interests and related assets of DoublePoint Energy in a transaction valued at approximately $6.4 billion.
“DoublePoint has amassed an impressive, high quality footprint in the Midland Basin, comprised of tier one acreage adjacent to Pioneer’s leading position. 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 generating significant value for our shareholders,” said Scott D. Sheffield, Pioneer’s CEO.
“The combination of Pioneer and DoublePoint is compelling from both a financial and operational standpoint and a natural fit for DoublePoint. This acquisition continues the trend of consolidation in the prolific Permian Basin, combining two complementary footprints in a transaction with both top- and bottom-line synergies,” said Geoffrey Strong, senior partner and co-head of Infrastructure and Natural Resources at Apollo.
“We are firm believers in Pioneer’s strategy of free cash flow generation, which enables a competitive base and strong variable dividend,” said Dheeraj Verma, president of Quantum Energy Partners.
“We are proud and appreciative of the work that our team has done to build a company and an asset base that is unparalleled in quality and truly cannot be replicated. We are honored to have the opportunity to combine our business with Pioneer, who we have long admired and regard as the premiere operator in the Midland Basin. The fit and the synergies are clear, and we look forward to working with Pioneer to continue creating value,” said Cody Campbell and John Sellers, Co-CEO’s of DoublePoint Energy.
DoublePoint Energy is a Fort Worth, Texas based upstream oil and gas company, led by the Double Eagle management team in partnership with FourPoint Energy. DoublePoint is backed by equity commitments from Apollo Global Management, Quantum Energy Partners, Magnetar Capital, and GSO Capital Partners.
About Pioneer Natural Resources Company
Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States.
To stop by Pioneer’s website, CLICK HERE
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