Pioneer Natural Resources, an independent oil operator, agreed to acquire DoublePoint Energy, an oil and gas explorer, for $6.4bn. Pioneer will issue approximately 27.2m shares of common stock in the transaction with an additional $1bn of cash. After closing, existing Pioneer shareholders will own approximately 89% of the combined company and existing DoublePoint owners will own approximately 11% of the combined company. "DoublePoint has amassed an impressive, high quality footprint in the Midland Basin, comprised of tier one acreage adjacent to Pioneer’s leading position. We are pleased with their decision to become long-term partners with Pioneer in a transaction that will complement our unmatched position in the core of the Permian Basin. Pioneer will incorporate these assets into our investment model, migrating the assets from significant production growth to a free cash flow model, moderating growth for the US shale industry and generating significant value for our shareholders," Scott D. Sheffield, Pioneer CEO.