(Reuters) – Pioneer Pure Assets Co is nearing a deal to accumulate oil producer DoublePoint Power for greater than $6 billion in money and inventory and broaden its footprint within the Permian Basin, folks accustomed to the matter stated on Thursday.
It will be Pioneer’s second vital acquisition in simply over six months, after asserting in October it could purchase Parsley Power for $4.5 billion.
U.S. shale corporations are on the hunt for acquisitions once more, as they place themselves for the restoration in oil costs, with the worth of U.S. crude rising 60% within the final six months. Consolidation permits them to chop prices to allow them to spend extra on drilling and return money to shareholders.
A deal between Pioneer and its non-public fairness homeowners, which embrace Apollo World Administration Inc and Quantum Power Companions, may very well be introduced as quickly as Thursday, the sources stated, requesting anonymity forward of an official announcement.
Pioneer and DoublePoint didn’t instantly reply to requests for remark.
DoublePoint Power was shaped in 2018 by the mix of two present corporations owned by non-public fairness companies – Double Eagle Power Holdings III and FourPoint Power. It had greater than 70,000 acres unfold throughout six Texas counties, based on the assertion asserting the formation.
Based mostly in Dallas, Pioneer focuses completely on oil and gasoline exploration within the Permian Basin. It has a market capitalization of about $36 billion.
The Permian Basin stretches throughout Western Texas and Southeastern New Mexico and is taken into account the center of the U.S. shale trade.
Dealmaking within the area has been selecting up. Final yr, Diamondback Power Inc agreed to purchase QEP Assets and Guidon Working for a mixed $3.2 billion together with debt, and ConocoPhillips introduced the $9.7 billion acquisition of Concho Assets.