Dallas-based Pioneer Natural Resources said April 1 it agreed to purchase leasehold interests and related assets of Fort Worth-based DoublePoint Energy in a transaction valued at $6.4 billion, including $900 million of debt. Enverus said it’s the largest acquisition of a U.S. exploration and production private company since 2011 and one of the largest private E&P acquisitions of the last 20 years. Pioneer will acquire contiguous and largely undeveloped assets.
Scott D. Sheffield, CEO, said, “DoublePoint has amassed an impressive, high-quality footprint in Midland Basin comprised of tier one acreage adjacent to Pioneer’s leading position.” The transaction includes 97,000 net acres that will add 100,000 barrels of production by late 2021Q2 and increases Pioneer’s position to more than 1 million net acres with no exposure to federal land. Enverus analyst Andrew Dittmar added, “It is somewhat surprising to see Pioneer announce another major acquisition so soon after the Parsley deal ($4.5 billion in October 2020), but the company may have felt the assets are simply too close a fit with their existing position to pass up.” DoublePoint was formed in 2018 by the combination of Double Eagle Energy Holdings and FourPoint Energy.
DoublePoint currently is running 7 rigs in Midland Basin, including 4 in Midland County and 1 each in Martin, Reagan and Upton counties. Pioneer reportedly plans to reduce activity there to 5 rigs by yearend. Closing is expected in 2021Q2.