Explained | How stars aligned for Exxon’s $60 billion deal with Pioneer

Exxon Mobil Corp’s resurgence under CEO Darren Woods and the upcoming retirement of Pioneer Natural Resources CEO Scott Sheffield were key to the oil major clinching the $60 billion acquisition, people familiar with the matter said.

After brief informal conversations earlier this year, Exxon approached Pioneer about a deal last month, the sources said. It was from a position of strength. Exxon’s shares were hovering near record highs, and it had a cash pile of about $30 billion.

Sheffield said he was approached by Woods two weeks ago with an offer that was beneficial both to shareholders and Pioneer’s employees. The Permian operations will be led by a mix of staff from both companies.