The $4.5 billion acquisition of Parsley Energy by Pioneer Natural Resources was completed this week resulting in a much larger operator in the Permian Basin of West Texas.
Pioneer based in Dallas announced Tuesday the acquisition was finalized after the approval by stockholders of both companies. At a special meeting of Pioneer stockholders, more than 99% supported the issuance of Pioneer common stock in connection with the transaction.
Likewise, more than 99% of Parsley stockholders also supported the transaction. The Parsley stockholders received 0.1252 shares of Pioneer common stock for each share of Parsley common stock they owned. As of the end of Tuesday, Parsley Class A common stock was no longer traded on the New York Stock Exchange.
In addition, in connection with the closing of the transaction, Matthew Gallagher and A.R. Alameddine have joined the Pioneer board of directors. Gallagher and Alameddine each served on Parsley’s board of directors until the closing of the transaction.
Scott D. Sheffield, CEO, stated, “The transaction is expected to further strengthen our investment framework by improving our free cash flow profile and enhancing return of capital to shareholders,” said Scott D. Sheffield, CEO.
“We appreciate the strong support from shareholders and are confident in the tangible and durable value created through this transaction, forming the premier Permian independent energy company.”