Exxon Mobil is buying Pioneer Natural Resources in an all-share deal valued at 59.5 billion dollars (£48bn), creating a colossal fracking operator in west Texas.

The transaction’s value, including debt, is about 64.5 billion dollars (£52bn), making it Exxon’s largest buyout since acquiring Mobil two decades ago,

Pioneer shareholders will receive 2.3234 shares in Exxon Mobil for each Pioneer share they own.

Exxon purchased XTO Energy in 2009 for approximately 36 billion dollars (£29bn). In the late 1990s, the merger between Exxon and Mobil totalled more than 80 billion (£65bn).

The deal with Pioneer Natural gives Exxon Mobil more access to the Permian basin, which runs through parts of Texas and New Mexico.

Exxon has been flush with cash. The company posted record annual profits in 2022, bringing in 55.7 billion dollars (£45bn) in annual profits, exceeding its previous record of 45.22 billion (£37bn) in 2008.

Exxon has been using some of that cash on acquisitions. In July the company announced that it was buying pipeline operator Denbury in an all-share deal valued at 4.9 billion dollars (£4bn).

Pioneer Natural has been making similar moves. In 2020 the company said it was buying Parsley Energy in an all-share deal valued at approximately 4.5 billion dollars (£3.7bn). It then purchased DoublePoint Energy in a cash-and-stock deal worth about 6.4 billion dollars (£5.2bn) in 2021.

Both companies’ boards have approved the transaction, which is expected to close in the first half of next year. It still needs approval from Pioneer shareholders.