Exxon CEO does not expect regulatory hurdles in buying Pioneer

By:
on Dec 7, 2023
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  • Exxon CEO says the Pioneer transaction is relatively a small one.
  • He explained why today on CNBC's "Squawk on the Street".
  • Exxon stock is currently down about 17% versus its YTD high.

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Darren Woods – the Chief Executive of Exxon Mobil Corp (NYSE: XOM) does not expect to face regulatory hurdles in buying Pioneer Natural Resources Co (NYSE: PXD).

Woods doesn’t see competition concerns

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The Federal Trade Commission asked for more information on the $60 billion acquisition this week. But Woods said today on CNBC’s “Squawk on the Street”:

I don’t think there’s any angle that you can look at this potential combination and find any concerns about competition.

He confirmed that Exxon will respond to the FTC’s request. Woods’ remarks arrive only a day after Exxon said its cost-cutting initiatives will help it more than double what it earned in 2019 by 2027 (read more).

Shares of Exxon Mobil Corp are currently down about 17% versus their year-to-date high.

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Woods says transaction is relatively small

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Despite the $60 billion price tag, Woods said the transaction is small when considered in the broader context of the U.S. oil market at large.

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If Exxon is allowed to merge with Pioneer Natural Resources, he added, the related oil production would not even amount to 5.0% of total production of the United States.

Woods remarks arrive shortly after Chuck Schumer – the Senate Majority leader and over twenty of his Democratic colleagues urged the FTC to investigation Exxon’s acquisition of PXD and Chevron’s acquisition of Hess Corp.

Such mergers, the senators argued, could make gas more expensive for Americans. Wall Street currently has a consensus “overweight” rating on $XOM.

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