(Reuters) – Pioneer Natural Resources Co <PXD.N> said on Tuesday it would buy smaller rival Parsley Energy Inc <PE.N> in a deal valued at about $4.5 billion, the latest consolidation among U.S. shale producers amid this year’s pandemic-driven oil rout.
Many U.S. shale companies have been mired in losses due to weak crude prices, which have hovered around $40 a barrel since June. But unlike in past downturns, companies have struggled to raise new capital to restructure heavy debts.
The all-stock deal is expected to add annual synergies of $325 million, and Pioneer shareholders will own about 76% of the combined company. https://refini.tv/3kmSrSc
On Monday, ConocoPhillips <COP.N> agreed to buy U.S. shale oil producer Concho Resources Inc <CXO.N> for $9.7 billion.
Parsley, focused on the Permian basin, will receive a fixed exchange ratio of 0.1252 shares of Pioneer Natural for each share held.
(Reporting by Arunima Kumar and Arundhati Sarkar in Bengaluru; Editing by Anil D’Silva and Maju Samuel)
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