Fitch puts Pioneer on positive watch

Fitch Ratings said it placed the BBB+ long-term issuer default ratings and all issue-level ratings of Pioneer Natural Resources Co. and Parsley Energy, LLC on rating watch positive.

The RWP follows the announcement that ExxonMobil Corp. agreed to buy Pioneer in an all-stock acquisition valued at about $60 billion. As contemplated, Pioneer shareholders will receive 2.3234 shares of ExxonMobil for each Pioneer share at close. The transaction is expected to close in the first half of 2024.

“The deal meaningfully enhances Exxon's Permian footprint by adding a significant amount of high-quality acreage, oil-weighted production and long-term drilling inventory in the core of the Midland Basin,” the agency said in a press release.

Fitch said it expects to resolve the RWP upon closing of the transaction, which will probably result in a multi-notch upgrade. “Although unlikely, the closing of the transaction and resolution of the RWP could take longer than six months.”

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