Exxon Mobil deal with Pioneer gets FTC nod, but former Pioneer CEO Scott Sheffield barred from board

Exxon Mobil’s $60 cardinal woody to bargain Pioneer Natural Resources has received clearance from the Federal Trade Commission, but the erstwhile CEO of Pioneer was barred from joining the caller company’s committee of directors

WASHINGTON -- Exxon Mobil's $60 cardinal woody to bargain Pioneer Natural Resources connected Thursday received clearance from the Federal Trade Commission, but the erstwhile CEO of Pioneer was barred from joining the caller company's committee of directors.

The FTC said Thursday that Scott Sheffield, who founded Pioneer successful 1997, colluded with OPEC and OPEC+ to perchance rise crude lipid prices. Sheffield retired from the institution successful 2016, but helium returned arsenic president and CEO successful 2019, served arsenic CEO from 2021 to 2023, and continues to service connected the board. Since Jan. 1, helium has served arsenic peculiar advisor to the company’s main executive.

“Through nationalist statements, substance messages, in-person meetings, WhatsApp conversations and different communications portion astatine Pioneer, Sheffield sought to align lipid accumulation crossed the Permian Basin successful West Texas and New Mexico with OPEC+,” according to the FTC. It projected a consent bid that Exxon won't name immoderate Pioneer employee, with a fewer exceptions, to its board.

Dallas-based Pioneer said successful a connection it disagreed with the allegations but would not impede closing of the merger, which was announced successful October 2023.

“Sheffield and Pioneer judge that the FTC’s ailment reflects a cardinal misunderstanding of the U.S. and planetary lipid markets and misreads the quality and intent of Mr. Sheffield’s actions,” the institution said.

The woody with Pioneer vastly expands Exxon’s beingness successful the Permian Basin, a immense oilfield that straddles the borderline betwixt Texas and New Mexico. Pioneer’s much than 850,000 nett acres successful the Midland Basin volition beryllium combined with Exxon’s 570,000 nett acres successful the Delaware and Midland Basin, astir contiguous fields that volition let the combined institution to trim costs.