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Mergers and Acquisitions | 12 Months Ended
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Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
Mergers and Acquisitions | Mergers and Acquisitions Pioneer Natural Resources Company On May 3, 2024, the Corporation acquired Pioneer, an independent oil and gas exploration and production company. In connection with the acquisition, we issued 545 million shares of ExxonMobil common stock having a fair value of $63 billion on the acquisition date, and assumed debt with a fair value of $5 billion. The transaction was accounted for as a business combination in accordance with ASC 805, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed.
(billions of dollars) | Pioneer
Current assets (1) | 3 |
Other non-current assets | 1 |
Property, plant & equipment (2) | 84 |
Total identifiable assets acquired | 88 |
Current liabilities (1) | 3 |
Long-term debt (3) | 5 |
Deferred income tax liabilities (4) | 16 |
Other non-current liabilities | 2 |
Total liabilities assumed | 26 |
Net identifiable assets acquired | 62 |
Goodwill (5) | 1 |
Net assets (6) | 63 |
(1) Current assets and current liabilities consist primarily of accounts receivable and payable, with their respective fair values approximating historical values given their short-term duration, expectation of insignificant bad debt expense, and our credit rating.
(2) Property, plant and equipment, of which a significant portion relates to crude oil and natural gas properties, was primarily valued using the income approach. Significant inputs and assumptions used in the income approach included estimates for commodity prices, future oil and gas production volumes, drilling and development costs, and risk-adjusted discount rates. Collectively, these inputs are level 3 inputs.
(3) Long-term debt was valued using market prices as of the acquisition date, which reflects the use of level 1 inputs.
(4) Deferred income taxes represent the tax effects of differences in the tax basis and acquisition date fair values of assets acquired and liabilities assumed.
(5) Goodwill was allocated to the Upstream segment.
(6) Provisional fair value measurements were made for assets acquired and liabilities assumed. Adjustments to those measurements may be made in subsequent periods, up to one year from the date of acquisition, as we continue to evaluate the information necessary to complete the analysis.
Debt Assumed in the Merger The following table presents long-term debt assumed at closing:
(millions of dollars) | Par Value | Fair Value as of May 2, 2024
0.250% Convertible Senior Notes due May 2025 (1) | 450 |  | 1,327 |
1.125% Senior Notes due January 2026 | 750 |  | 699 |
5.100% Senior Notes due March 2026 | 1,100 |  | 1,096 |
7.200% Senior Notes due January 2028 | 241 |  | 252 |
4.125% Senior Notes due February 2028 | 138 |  | 130 |
1.900% Senior Notes due August 2030 | 1,100 |  | 914 |
2.150% Senior Notes due January 2031 | 1,000 |  | 832 |
(1) In June 2024, the Corporation redeemed in full all of the Convertible Senior Notes assumed from Pioneer for an amount consistent with the acquisition date fair value.
Actual and Pro Forma Impact of Merger The following table presents revenues and earnings included in the Consolidated Statement of Income for Pioneer since the acquisition date (May 3, 2024) through December 31, 2024:
(millions of dollars) |  | Twelve Months Ended December 31, 2024
Sales and other operating revenues |  | 17,008 |
Net income (loss) attributable to ExxonMobil |  | 1,710 |
The following table presents unaudited pro forma information for the Corporation as if the merger with Pioneer had occurred at the beginning of January 1, 2023:
Unaudited (millions of dollars) |  | Twelve Months Ended December 31,
|  | 2024 | 2023
Sales and other operating revenues |  |  | 347,406 |  | 358,014 |
Net income (loss) attributable to ExxonMobil |  |  | 34,476 |  | 39,211 |
The historical financial information was adjusted to give effect to the pro forma events that were directly attributable to the merger and factually supportable. The unaudited pro forma consolidated results are not necessarily indicative of what the consolidated results of operations actually would have been had the merger been completed on January 1, 2023. In addition, the unaudited pro forma consolidated results reflect pro forma adjustments primarily related to conforming Pioneer's accounting policies to ExxonMobil, additional depreciation expense related to the fair value adjustment of the acquired property, plant and equipment, our capital structure, Pioneer's transaction-related costs, and applicable income tax impacts of the pro forma adjustments. Our transaction costs to effect the acquisition were immaterial. Denbury Inc. On November 2, 2023, the Corporation acquired Denbury, a developer of carbon capture, utilization, and storage solutions and enhanced oil recovery producing assets. The acquisition also included Gulf Coast and Rocky Mountain oil and natural gas operations. Total consideration was $5.1 billion, which included the issuance of 46 million shares of ExxonMobil common stock from treasury having a fair value of $4.8 billion on the acquisition date, and cash payments of $0.3 billion related to repayment of Denbury's credit facility and settlement of fractional shares. The transaction was accounted for as a business combination in accordance with ASC 805, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The following table summarizes the fair values of the assets acquired and liabilities assumed:
(billions of dollars) | Denbury
Current assets | 0.4 |
Property, plant & equipment | 6.4 |
Other assets | 0.2 |
Total assets | 7.0 |
Current liabilities | 0.3 |
Long-term liabilities | 1.6 |
Total liabilities | 1.9 |
Net assets acquired | 5.1 |
Inputs for the assumptions used in the income approach to value property, plant and equipment included estimates for pipeline tariff rates, pipeline throughput volumes, commodity prices, future oil and gas production profiles, operating expenses, and a risk-adjusted discount rate. The Denbury acquisition resulted in an immaterial amount of goodwill. Revenues and earnings arising from Denbury's operations are immaterial in 2023 for pro forma disclosure purposes.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
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