The Federal Trade Commission (FTC) has denied a request from Scott Sheffield, the founder and former CEO of Pioneer Natural Resources, to reopen and set aside a final consent order concerning Exxon Mobil Corporation's acquisition of Pioneer. The FTC cited that Sheffield is not a party to the final order and therefore cannot utilize the petition process as per Rule 2.51 of the FTC’s Rules of Practice.
The consent order, issued in January 2025, prevents Exxon from nominating or appointing Sheffield to its board or having him serve in any advisory capacity. It also restricts Exxon from appointing any Pioneer employee or director, except for certain named individuals, to its board for five years.
This order resolved an FTC complaint alleging that Exxon's acquisition was anticompetitive due to Sheffield's proposed appointment to Exxon's board. The complaint suggested that his appointment could lead to anticompetitive coordination and harm crude oil competition, referencing his past communications with OPEC representatives about oil and gas output. It also mentioned potential issues with unlawful interlocking directorates.
Although the complaint referenced Sheffield's conduct, it did not formally charge him with violating antitrust laws under Section 7 of the Clayton Act or Section 5 of the FTC Act. The denial states that since Sheffield is not part of the final consent order, he lacks standing to file a petition under Rule 2.51. However, requests from those not subject to an FTC order can be submitted for review but are at the Commission’s discretion.
Despite this limitation, the Commission intends to consider Sheffield's arguments under Rule 3.72 regarding reopening and vacating the final order.
The decision to deny reopening and setting aside the order was unanimous with a vote of 3-0.
The Federal Trade Commission aims to promote competition and protect consumers by providing education on consumer rights and preventing unfair practices.
