Exxon Expects FTC to Approve Pioneer Deal by Mid-Year, CFO Says

Exxon Mobil Corp. expects US antitrust regulators to approve its $60 billion acquisition of Pioneer Natural Resources Co. by the end of June despite increased government scrutiny of corporate mergers.

“We continue to expect the deal is going to be approved in the second quarter, consistent with the fact that there really aren’t any major issues associated with the deal,” Chief Financial Officer Kathy Mikells said in an interview. “Combined, we’re only 5%” of US oil and natural gas production.

Exxon’s October announcement of the Pioneer deal was followed by two Federal Trade Commission requests for information. In March, more than 50 lawmakers called on the agency to increase scrutiny of oil and gas deals over fear they will increase prices for consumers and suppress wages.

“We continue to have productive dialog with the FTC staff,” Mikells said.

The deal would make Exxon the biggest crude producer in the Permian Basin, but even then it would account for just 15% of the region’s overall output, the companies have said. Exxon claims the transaction would help lower costs, boost US energy production and accelerate Pioneer’s net- zero goals.