![Analyst: Exxon Mobil, Pioneer Deal Close Likely ‘Imminent’](/sites/default/files/styles/hart_news_article_image_640/public/image/2024/05/exxon-mobil.jpg?itok=8KohDIo2)
With approval from the Federal Trade Commission, Exxon Mobil could close its $59.5 million acquisition of Pioneer Natural Resources after more than six months of review. (Source: Shutterstock)
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
Equinor Subsidiary Contracts Valaris Drillship Offshore Brazil
2024-07-22 - Valaris and Equinor Energy do Brasil’s multi-year contract is valued at approximately $498 million.
Petrobras CEO Prates to Step Down
2024-05-15 - Brazil’s President Luiz Inácio Lula da Silva has requested that Petrobras CEO Jean Paul Prates resign following a dispute over dividend payments.
Valaris’ 1Q Sets Positive Tone for Offshore
2024-05-06 - Coming out of first-quarter 2024, drilling contractor Valaris expects a sustained upcycle for the offshore drilling industry supported by demand growth, OPEC+ production cuts and supportive commodity prices.
Halliburton Sees NAM Activity Rebound in ‘25 After M&A Dust Settles
2024-07-19 - Halliburton said a softer North American market was affected by E&Ps integrating assets from recent M&A as the company continues to see international markets boosting the company’s bottom line.
Solaris Stock Jumps 40% On $200MM Acquisition of Distributed Power Provider
2024-07-11 - With the acquisition of distributed power provider Mobile Energy Rentals, oilfield services player Solaris sees opportunity to grow in industries outside of the oil patch—data centers, in particular.