Federal Trade Commission on Thursday approved ExxonMobil’s $64.5 billion purchase of Pioneer Natural Resources, but FTC issued a consent agreement that prevents Pioneer founder and former CEO Scott Sheffield from serving on the Exxon board of directors or serving as an advisor based on allegations he attempted to collude with OPEC to raise oil prices. FTC said, “Former Pioneer CEO Scott Sheffield coordinated efforts with U.S. shale oil producers to constrain their production and raise energy prices.” FTC said Sheffield used his influence “to align oil production across the Permian Basin in west Texas and New Mexico with OPEC.”
Pioneer said in a statement issued Thursday, “We disagree and are surprised by the FTC’s complaint. Mr. Sheffield and Pioneer believe that the FTC’s complaint reflects a fundamental misunderstanding of the U.S. and global oil markets and misreads the nature and intent of Mr. Sheffield’s actions.”
Early on Friday ExxonMobil said it closed its acquisition of Pioneer. It becomes the largest oil producer in the Permian Basin – doubling output to more than 1.3 million barrels of oil equivalent per day. The combined company has more than 1.4 million net acres in Delaware and Midland basins with an estimated 1.6 billion barrels of oil equivalent.
Sheffield retired as Pioneer CEO in December. The company he founded was the biggest producer in Permian Basin. FTC said he now serves on the board of The Williams Companies.
FTC said the vote to accept the consent agreement was 3-2 with the chair and two commissions supporting the agreement and two commissioners dissenting. The sale was announced in October 2023.