Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Pioneer Natural Resources to Buy Pioneer Southwest Energy Partners for $1.5 Billion

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Oil and gas E&P company Pioneer Natural Resources (NYSE: PXD  ) announced today that it plans to absorb production and drilling company Pioneer Southwest Energy Partners (UNKNOWN: PSE.DL  ) into its operations as a wholly owned subsidiary.

The total deal is valued at approximately $1.46 billion, equivalent to roughly 50% of Pioneer Natural Resource's FY 2012 revenue.

The all-stock purchase will trade in Pioneer Southwest Shares for Pioneer shares at a multiple of 0.2325, representing a 1% premium over Southwest's Friday closing price. Pioneer Natural had previously attempted to acquire Pioneer Southwest for around $1.1 billion in May, but the offer was turned down.

For Pioneer Natural shareholders, the company expects to issue around 3.95 million additional shares of stock to be issued, while Pioneer Southwest shareholders can rest easy that quarterly distributions will continue to be paid out until the acquisition is fully completed.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2592056, ~/Articles/ArticleHandler.aspx, 9/25/2016 11:57:35 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
PSE.DL $0.00 Down +0.00 +0.00%
Pioneer Southwest… CAPS Rating: ****
PXD $175.53 Down -3.52 -1.97%
Pioneer Natural Re… CAPS Rating: **