Pioneer and Evergreen in $2.1 Billion Energy Merger

Pioneer Natural Resources (PXD Quote) and Evergreen Resources (EVG Quote) Tuesday said they will merge in a $2.1 billion cash-and-stock deal.

The deal is worth $39 a share based on Pioneer's closing price of $33.52 a share on May 3. Under terms of the deal, Evergreen shareholders will have three options to convert their shares. The default option calls for Evergreen shareholders to receive approximately 0.58 shares of Pioneer common stock and $19.50 in cash for each of their shares.

Chris Edmonds, a columnist on TheStreet.com's sister site, RealMoney.com, mentioned Evergreen as a possible acquisition target in a column published last month.

The energy companies said Evergreen will become a subsidiary of Pioneer, with the merger expected to be complete in the second half of this year.

Evergreen, whose principal focus is natural gas exploration in Colorado, will seek to sell its Kansas assets before the closing date of the merger. Pioneer has oil and natural gas operations in the U.S. and abroad.

Evergreen shares fell 51 cents, or 1.3%, to $40.12 in premarket trading.