Exxon Mobil Corporation (NYSE:XOM) closed its acquisition of Pioneer Natural Resources Company last week.
The merger of both companies created a combined company that has more than 1.4 million net acres in the Delaware and Midland basins and had an estimated 16 billion barrels of oil equivalent resource.
With the buyout, ExxonMobil's Permian production volume is projected to more than double to 1.3 million barrels of oil equivalent per day (MOEBD), based on 2023 volumes, and is targeted to increase to around 2 MOEBD in 2027.
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Also, ExxonMobil expects to increase the amount of recycled water used in its Permian fracturing operations to more than 90% by 2030.
Darren Woods, ExxonMobil Chairman and CEO, said, "This premier, tier-one asset is a natural fit for our Permian portfolio and gives us a greater opportunity to deploy our technology and deliver operating and capital efficiency for long-term shareholder value."
"The combination of our two companies benefits this country's energy security and economy, and also furthers society's environmental ambitions as we move Pioneer's 2050 net zero goal to a 2035 plan."
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In the first quarter FY24, total revenues and other income stood at $83.083 billion, beating the consensus of $78.352 billion and adjusted EPS stood at $2.06, missing the consensus of $2.20.
At the end of the quarter, ExxonMobil had a cash balance of $33.3 billion.
Investors can gain exposure to the XOM stock via Energy Select Sector SPDR Fund (XLE) and IShares U.S. Energy ETF (IYE).
Also Read: Exxon To Shut Down Two Oil Projects For Pipeline Connection: Report
Price Action: XOM shares are up 1.28% at $117.49 at the last check Monday.
Photo: Del Henderson Jr. via Shutterstock