Following back-to-back acquisitions earlier this year growing its acreage position in the Permian Basin to over 1 million net acres, Pioneer Natural Resources Co. is reportedly now considering slimming down.
The major U.S. shale producer is pursuing the sale of its Delaware Basin assets with a target price of over $2 billion, according to a Reuters report citing two sources familiar with the matter.
A large U.S. independent oil and gas E&P company that has historically focused its operations in the Midland Basin portion of the Permian, Pioneer added the Delaware sub-basin to its portfolio earlier this year when the closing of its acquisition of Parsley Energy in an all-stock merger valued at approximately $4.5 billion. The company’s next multibillion-dollar deal for DoublePoint Energy focused solely on the Midland Basin.
In a research note on Sept. 17, analysts with KeyBanc Capital Markets noted Pioneer has about 350 wells producing on its roughly 111,000 net acres in the Delaware Basin. Recent production from Pioneer’s Delaware position is around 65,000 boe/d (68% oil).