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

Oil and gas E&P company Pioneer Natural Resources announced today that it plans to absorb production and drilling company Pioneer Southwest Energy Partners 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.

The article Pioneer Natural Resources to Buy Pioneer Southwest Energy Partners for $1.5 Billion originally appeared on

Fool contributor Justin Loiseau has no position in any stocks mentioned. You can follow him on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo.The Motley Fool has no position in any of the stocks mentioned, either. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.