Energy & Environment

Weekly Oil Market Crash Update: Pioneer To Acquire Parsley Energy; Oilfield Service Giants Post Millions In Losses

Pioneer Natural Resources announced it will acquire Parsley Energy just a day after ConocoPhillips said it planned to merge with Concho Resources. Both are all-stock transactions.

In this Monday, Sept. 2, 2019, photo, pump jacks stand next to a housing development in Odessa, Texas in the Permian Basin. (AP Photo/Sue Ogrocki)

Two big players in the Permian Basin are merging.

Pioneer Natural Resources says it will acquire Parsley Energy in an all-stock traction valued at $4.5 billion. The combined company will have about 930,000 net acres and a production base of more than 325,000 barrels of oil per day, according to Irving-based Pioneer.

"This transaction creates an unmatched independent energy company by combining two complementary and premier Permian assets, further strengthening Pioneer's leadership position within the upstream energy sector," Pioneer President and CEO Scott Sheffield said in a statement.

Sheffield's son Bryan founded Austin-based Parsley Energy in 2008. Bryan Sheffield now serves as executive chairman of Parsley's board.

It wasn't the only major merger announced this week — ConocoPhillips says it will acquire Concho Resources in an all-stock deal. That transaction is valued at $9.7 billion.

Also this week, the oilfield services sector continued to post significant losses for the third quarter. Houston giant Halliburton reported $17 million in losses. Halliburton's shares have dropped 50% since the beginning of the year.

The world's largest oilfield services company is also watching its shares fall to a 6-month low. Houston-based Schlumberger recorded a loss of $82 million for the 3rd quarter of the year.

Baker Hughes, which has headquarters in London and Houston, reported a $170 million loss for the third quarter.

And Thursday is the final scheduled presidential debate, in which climate change is expected to be among the topics discussed. That’s after being largely left out of the 2016 debates.

This cycle, energy and the environment have come up during every debate this election cycle. That’s especially be of interest to Texas voters who want to know how the candidates will help the energy industry recover, after being hit especially hard in the state during the coronavirus-led downturn.

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Kyra Buckley

Kyra Buckley

Energy Reporter

Kyra Buckley is an Energy Reporter with Houston Public Media. Before joining the News 88.7 team she was the Morning Edition Host and a reporter at KUNC in Northern Colorado. She started in public radio in her hometown of Eugene, Oregon where she hosted Weekend Edition and reported for KLCC....

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