ExxonMobil Receives FTC Approval to Acquire Pioneer Natural Resources
American energy company ExxonMobil has received approval from the US Federal Trade Commission (FTC) to acquire Pioneer Natural Resources, an operator of the Permian shale basin, for $64.5 billion. The Federal Trade Commission said it resolved antitrust issues related to the deal by approving the consent decree. At the same time, according to the decree, Scott Sheffield, the founder and former CEO of Pioneer Natural Resources, is prohibited from holding a position on the board of directors of ExxonMobil or acting as a consultant after the completion of the transaction.
The Federal Trade Commission said the move was intended to stop Sheffield from colluding to raise crude oil prices. In addition, the agency alleged that he tried to work with OPEC and OPEC+ to reduce oil and gas production, potentially leading to higher oil prices for Americans.
The FTC said Sheffield’s potential appointment to ExxonMobil’s board would also be anticompetitive because he currently serves on the board of Williams, which operates middle-market assets and other businesses that compete directly with ExxonMobil.
Pioneer Natural Resources responded to the FTC’s action by expressing its opposition and surprise at the complaint against Sheffield. Despite this, the company said it and Sheffield would not stand in the way of closing the merger.
An all-share deal between ExxonMobil and Pioneer Natural Resources was announced in October 2023. The merger will combine Pioneer Natural Resources’ resources in the Midland Basin with ExxonMobil’s resources in the Delaware and Midland Basins. As a result, the combined company will have estimated Permian Basin resources of 16 billion boe.
