Oil & Gas

ExxonMobil anticipates approval from the U.S. antitrust authority for the acquisition of Pioneer Natural Resources by the end of June. The deal, valued at $60 billion in all-stock, would significantly expand ExxonMobil's presence in the Permian Basin, doubling its footprint.

The Federal Trade Commission (FTC) is scrutinizing various major transactions in the U.S. oil industry, including proposals by Exxon, Chevron, and Occidental, among others.

Exxon's Chief Financial Officer, Kathy Mikells, affirmed in a Bloomberg interview that the company expects the acquisition of Pioneer to be approved by the end of the second quarter. The transaction, already approved by Pioneer shareholders, is slated to close in the second quarter of 2024 pending regulatory clearance.

Concerns over competition and consumer impact led nearly 50 Democratic Senators and Representatives to call for an FTC investigation into recent mergers in the oil and gas sector.

Exxon's acquisition of Pioneer, announced in October 2023, aims to bolster ExxonMobil's upstream portfolio, doubling its Permian Basin assets and establishing a leading position in high-quality, high-return undeveloped U.S. unconventional resources.

Despite Exxon's optimism, potential legal challenges could delay Chevron's acquisition of Hess Corporation. Exxon claims the right of first refusal for acquiring Hess's stake in the Stabroek block offshore Guyana, where Exxon is the operator. Exxon and CNOOC have merged their arbitration claims against Chevron's takeover of Hess's stake, potentially postponing the acquisition until next year.