Pioneer Natural Resources Co. has agreed to buy Parsley Energy Inc. for $4.5 billion, the latest in a flurry of U.S. oil tie-ups as companies seek to weather low prices brought about by the coronavirus pandemic. The all-stock deal, which values Parsley at a 7.9% premium to its closing value Monday, would solidify Pioneer’s place as one of the largest producers in the Permian Basin of Texas and New Mexico, the top American oil field. The long-anticipated string of transactions is expected to continue for healthier companies in the country’s most prolific oil fields, investors said, while many smaller, debt-burdened companies that are hoping for a deal may draw few offers. But he said additional combinations of industry players may take time. “I do not see much more coming until these other companies can deliver with excess cash flow over the next two or three years,” he said.

Source: Wall Street Journal October 20, 2020 20:03 UTC