ExxonMobil to buy $1.19bn of Pioneer bonds in debt tender

ExxonMobil is set to buy about $1.19 billion of bonds issued by Pioneer Natural Resources, its wholly owned subsidiary, after investors tendered more than half of the outstanding debt in a cash offer aimed at reshaping the group’s liabilities.

The US energy major said on Tuesday that it would purchase $570.36 million of Pioneer’s 1.9% senior notes due 2030 and $615.6 million of its 2.15% senior notes due 2031.

The tender offers expired at 5 p.m. New York time on Monday. ExxonMobil said settlement is expected on Wednesday, with holders of accepted notes also receiving accrued and unpaid interest.

For every $1,000 of the 2030 notes accepted, investors will receive $888.49, while holders of the 2031 notes will receive $885.66. The securities will be cancelled after purchase.

The notes were originally issued by Pioneer Natural Resources, which ExxonMobil acquired in 2024 in a deal valued at about $60 billion including debt. The acquisition significantly expanded ExxonMobil’s position in the US Permian Basin, one of the world’s largest oil-producing regions.

The tender comes as large energy companies continue to manage debt portfolios following a period of elevated borrowing costs and major acquisitions. By buying back the bonds for cash, ExxonMobil will retire a portion of Pioneer’s outstanding debt before its scheduled maturities.

The pricing of the offers was based on a US Treasury reference yield of 4.777%, with a fixed spread of 30 basis points for the 2030 notes and 35 basis points for the 2031 notes.

ExxonMobil said the offers were made under the terms of an offer to purchase dated Sept. 8 and that interest on the accepted securities will stop accruing on the settlement date.

The company did not disclose a broader financing rationale for the transaction in Tuesday’s announcement.

ExxonMobil, one of the world’s largest publicly traded energy companies, operates across oil and gas production, refining, chemicals and lower-emissions technologies. Its shares trade on the New York Stock Exchange under the ticker XOM.