FTC Denies Sheffield's Petition to Overturn Exxon Board Ban

The FTC has denied Scott Sheffield's petition to set aside an order barring him from Exxon Mobil's board after its acquisition of Pioneer Natural Resources. The order, issued by the Biden-era FTC, was challenged by Sheffield, the founder of Pioneer. The FTC's three Republican commissioners voted in favor of denying Sheffield's petition.

The Federal Trade Commission (FTC) has denied a petition filed by Scott Sheffield, the founder and former CEO of Pioneer Natural Resources, to reopen and set aside an order that bars him from serving on Exxon Mobil's board following the acquisition of Pioneer. The FTC's three Republican commissioners voted unanimously to deny the petition on procedural grounds [1].

The order, issued by the Biden-era FTC in January 2025, prohibits Exxon from nominating, designating, or appointing Sheffield to its board of directors or having him serve in any advisory capacity to the board or management. Additionally, the order restricts Exxon from appointing any Pioneer employee or director to its board for five years, with certain exceptions [3].

Sheffield had argued that the FTC's order overreached its authority and that his appointment to the board would not have an anticompetitive effect. The FTC, however, maintained that the order was necessary to prevent potential anticompetitive coordination and harm to crude oil competition, citing Sheffield's past communications with representatives of the Organization of Petroleum Exporting Countries (OPEC) [3].

While the FTC denied Sheffield's petition on procedural grounds, it indicated that it would consider his arguments for reopening and vacating the final order under Rule 3.72 [3]. The FTC has been reviewing similar orders that bar individuals from serving on boards of merged companies, including one involving Hess CEO John Hess and Chevron [4].

Investors and financial professionals should monitor the situation as the FTC continues to review the order. Any changes to the order could have implications for the merger and potential antitrust concerns.

References:
[1] https://finance.yahoo.com/news/ftc-denies-sheffield-standing-may-121125035.html
[2] https://seekingalpha.com/news/4467670-ftc-denies-sheffields-petition-to-set-aside-order-barring-him-from-exxon-board
[3] https://www.ftc.gov/news-events/news/press-releases/2025/07/ftc-denies-sheffields-petition-reopen-set-aside-exxon-pioneer-final-order
[4] https://www.reuters.com/business/energy/ex-pioneer-ceo-cannot-challenge-order-barring-him-exxon-board-ftc-says-2025-07-15/