Exxon Mobil Corp. appears to be nearing the end of a second review by the Federal Trade Commission as it seeks to wrap up a more than six-month quest to acquire Pioneer Natural Resources.
Bob Brackett, an analyst at Bernstein, wrote in an April 26 report that few obstacles remain to “an imminent 2Q close on Pioneer.”
“Should XOM [Exxon] have complied with the FTC’s 2nd request, the 30-day review period likely began in early April,” Brackett said.
Under the Hart-Scott-Rodino Antitrust Improvements Act, deals are reviewed by the FTC for 30 days. A second request of information restarts the 30-day review period.
Exxon Mobil’s $59.5 million deal to acquire Pioneer will bring together two of the largest crude oil producers in the Permian Basin.
During Exxon’s April 26 earnings call, Chairman and CEO Darren Woods said the companies had supplied the commission with “an enormous amount of material, documents, contracts [and] line items on productions and sales.”
Woods added that the transaction had been through a “very thorough review.”
“As we've said all along, we're very confident that there are no antitrust issues, and I would just say we're very optimistic that … we'll meet the objective that we said very early to close in the second quarter,” Woods said.
The FTC has aggressively reviewed several upstream oil and gas deals since last year. Most recently, Diamondback Energy’s $26 billion merger with Endeavor Energy Resources was delayed by an additional request for information from the FTC.
In April, Chesapeake Energy’s $7.4 billion merger with Southwestern Energy was delayed by additional oversight, as was the $53 million merger between Chevron and Hess Corp.
Recommended Reading
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
Vår Selling Norne Assets to DNO
2024-05-08 - In exchange for Vår’s producing assets in the Norwegian Sea, DNO is paying $51 million and transferring to Vår its 22.6% interest in the Ringhorne East unit in the North Sea.
SLB OneSubsea JV to Kickstart North Sea Development
2024-05-07 - SLB OneSubsea, a joint venture including SLB and Subsea7, have been awarded a contract by OKEA that will develop the Bestla Project offshore Norway.
For Sale, Again: Oily Northern Midland’s HighPeak Energy
2024-03-08 - The E&P is looking to hitch a ride on heated, renewed Permian Basin M&A.