FTC May Reconsider Hess, Sheffield Bans on Holding Board Seats

The Federal Trade Commission (FTC) reports it may reconsider 11th hour bans on Pioneer Natural Resources CEO Scott Sheffield from holding an Exxon Mobil board seat and on Hess Corp. CEO John Hess from serving on the Chevron Corp. board.

The bans enabled Exxon to close its $64.5 billion merger with Pioneer and Chevron to close its $53 billion deal for Hess.

The commission announced April 11 that it is seeking public comment now on the two rulings that were made in the Jan. 17 Hess deal final consent order and the Jan. 17 Pioneer deal order.

Chevron and Hess filed the petition to reopen the Hess case and remove the ban. Sheffield filed the petition in his case.

The Chevron-Hess merger, although approved by the FTC, is not yet completed, while the pair is in a dispute with Exxon Mobil about interests in an E&P partnership offshore Guyana. Chevron, Exxon and stakeholder CNOOC are in arbitration over the matter.

The FTC orders, issued on the last federal business day before President Trump’s inauguration in January, alleged the CEOs had conversations with OPEC members in the past about global oil supply. In the Exxon-Pioneer matter, the FTC alleged that, on Exxon’s board, Sheffield would engage in “collusive activity.”

The FTC ruled 3-2 that American oil CEO conversations with other oil producers about supply and demand data are not permitted.

Chevron and Hess’ petition states the FTC “failed to state a cognizable theory of competitive harm” from oil CEOs having conversations with other executives about market conditions.

Public comments on the Hess and Sheffield prohibitions will be open until May 12, the FTC reported.

Sheffield told Hart Energy in March, “We’re hoping, with the third Republican coming on [to the FTC] here in the next 60 days, the FTC will be all Republican and there'll be hopefully a compromise between the federal court and the new FTC to vacate the order.

“That's what I'm hoping happens.”

Since the FTC approved the Pioneer-Exxon Mobil deal in May 2024, business leaders and others have told him “it's a baseless and illegal order that was done. The FTC had no right to even put out that order. They have no authority to put out that kind of order.”

Sheffield has filed a federal lawsuit alleging that the commission had “concocted this attack” and misused their power.

The two commission members who voted nay “have said it was pretty much illegal,” Sheffield said.

The FTC now has three confirmed members, all Republican. Chairman Lina Khan resigned from the FTC after issuing the Hess and Sheffield orders.