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PIONEER NATURAL RESOURCES Pioneer Natural Resources Announces Bolt - On Acquisition of DoublePoint Energy in the Midland Basin April 2 , 2021 DALLAS -- ( BUSINESS WIRE ) -- Apr . 1 , 2021-- Pioneer Natural Resources Company ( NYSE : PXD ) ( " Pioneer " or " the Company " ) today announced that it has entered into a definitive purchase agreement to acquire the leasehold interests and related assets of DoublePoint Energy ( DoublePoint ) in a transaction valued at approximately $ 6.4 billion as of April 1 , 2021 , comprised of approximately 27.2 million shares of Pioneer common stock , $ 1 billion of cash and the assumption of approximately $ 0.9 billion of debt and liabilities . Scott D. Sheffield , Pioneer's CEO stated , " 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 . " Transaction Enhances Investment Framework • Accretive to Key Financial Metrics - Pioneer expects the transaction to be accretive on key financial metrics including cash flow and free cash flow per share , earnings per share and corporate returns during 2021 and beyond . • Increases Variable Dividend Outlook – Consistent with Pioneer's priority of returning capital to shareholders , the accretive nature of this transaction to free cash flow leads to an increase in the expected per share variable dividend beginning in 2022 and beyond . • Unmatched Permian Scale – This transaction represents a contiguous position of approximately 97,000 high quality net acres directly offsetting and overlapping Pioneer's existing footprint . The acquired acreage is primarily undrilled and augments Pioneer's premium asset base , increasing the Company's acreage position to greater than 1 million net acres with no exposure to federal lands . The Company expects production from the acquired assets to reach approximately 100,000 barrels of oil equivalent per day by late in the second quarter . • Significant Synergies - The acquisition is expected to result in annual cost savings of approximately $ 175 million through operational efficiencies and reductions in general and administrative ( G & A ) and interest expenses . The expected present value of these cost savings totals approximately $ 1 billion over a 10 - year period . • Top - Tier Balance Sheet Maintained - Pioneer's pro forma leverage metrics will remain relatively unchanged , among the lowest in the industry , preserving the Company's financial and operational flexibility and allowing for significant return of capital to shareholders . Geoffrey Strong , Senior Partner and Co - Head of Infrastructure and Natural Resources at Apollo , commented , " The combination of Pioneer and DoublePoint is compelling from both a financial and operational standpoint and a natural fit for Double Point . 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 . " Dheeraj Verma , President of Quantum Energy Partners added , " we are firm believers in Pioneer's strategy of free cash flow generation , which enables a competitive base and strong variable dividend . " Cody Campbell and John Sellers , Co - CEO's of Double Point Energy said , " 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 . " Transaction Details Pioneer will issue approximately 27.2 million shares of common stock in the transaction with an additional $ 1 billion of cash . After closing , existing Pioneer shareholders will own approximately 89 % of the combined company and existing DoublePoint owners will own approximately 11 % of the combined company . Pioneer plans to finance the cash portion of the purchase price through a combination of cash on - hand and existing borrowing capacity under its revolving credit facility . The transaction has been unanimously approved Pioneer's Board of Directors and is expected to close in the second quarter of 2021 , subject to customary closing conditions and regulatory approvals . The transaction is structured as the acquisition by a Pioneer subsidiary of 100 % of the limited liability company interests of Double Point's wholly owned subsidiary , Double Eagle III Midco 1 LLC . Webcast Discussion In conjunction with this release , the Company posted a pre - recorded webcast and associated investor presentation to its website .