Scott Sheffield, founder of Pioneer Natural Resources, is petitioning the FTC to rescind restrictions preventing his service on Exxon Mobil’s board following the oil giants’ recent merger.
At a Glance
- The FTC is seeking public comment on Sheffield’s petition to modify a January 2025 consent order related to Exxon’s acquisition of Pioneer
- Current restrictions prohibit Sheffield from serving on Exxon’s Board of Directors or in any advisory capacity
- The order also prevents most Pioneer employees and directors from joining Exxon’s board for five years
- Sheffield wants the entire order vacated
- Public comments will be accepted until May 12, 2025
Government Restrictions on Energy Merger
The Federal Trade Commission has opened a public comment period regarding Scott Sheffield’s petition to overturn restrictions placed on Exxon Mobil following its acquisition of Pioneer Natural Resources. Sheffield, who founded Pioneer and served as its CEO, is specifically challenging provisions that prevent him from joining Exxon’s board of directors or serving in any advisory capacity. These restrictions were part of a consent order issued by the FTC on January 17, 2025, when it approved Exxon’s acquisition of the shale producer.
The January consent order contains broad restrictions on personnel movement between the companies. Beyond barring Sheffield specifically, the order prevents Exxon from appointing any Pioneer employee or director to its board for a period of five years, with only certain named exceptions. Sheffield’s petition takes aim at these limitations by requesting that the FTC vacate the final order in its entirety, effectively removing all restrictions placed on the integration of the two energy companies.
Public Input Process
The FTC’s request for public comment represents a standard procedure when considering modifications to existing consent orders. Citizens and interested parties have until May 12, 2025, to submit their perspectives on Sheffield’s petition. The commission has provided detailed instructions for filing comments through its electronic filing system, and all submissions will be posted publicly on Regulations.gov. This transparency allows stakeholders across the energy sector and beyond to review the arguments presented and offer their own insights.
Once the comment period closes, the FTC commissioners will evaluate both Sheffield’s petition and the public feedback before voting on whether to modify or rescind the consent order. The decision will likely hinge on whether circumstances have changed sufficiently since January to justify removing the restrictions, or if the competitive concerns that led to the original order remain valid. The outcome will have significant implications for corporate governance at Exxon and potentially for future energy sector mergers.
Background on the Exxon-Pioneer Deal
Exxon Mobil’s acquisition of Pioneer Natural Resources represented one of the largest deals in the energy sector in recent years. The merger, valued at approximately $60 billion, significantly expanded Exxon’s footprint in the Permian Basin, America’s most productive oil field. When announcing the deal, Exxon highlighted the complementary nature of the two companies’ assets and projected substantial operational synergies. However, the size and market impact of the transaction attracted regulatory scrutiny from the FTC, which ultimately led to the consent order now being challenged.
The FTC’s original concerns focused on potential competitive issues that could arise from the merger, particularly regarding the influence of key personnel like Sheffield. Industry analysts noted the unusual nature of the restrictions on Sheffield specifically, suggesting the commission may have had particular concerns about his industry connections and potential influence. The order reflected the FTC’s broader mandate to promote competition and protect consumers in increasingly concentrated industries like energy production.
