Maurice B. Shaw

The article details an ongoing investigation by the U.S. Federal Trade Commission (FTC) into potential collusion between executives of major oil and gas companies and OPEC officials. The primary focus is on communications that may reveal improper coordination on pricing and production levels, which could violate U.S. antitrust laws. Key points include: 1. Companies Under Scrutiny: The FTC is examining communications from executives at Hess Corp., Occidental Petroleum Corp., and Diamondback Energy Inc., among others. 2. Nature of the Investigation: The investigation aims to uncover evidence of collusion that could lead to higher oil prices and less competitive markets. This is part of a broader probe into several mergers within the industry, especially those involving operations in the Permian Basin. 3. Recent Findings: In May, the FTC found hundreds of texts between Pioneer Natural Resources Co. founder Scott Sheffield and OPEC officials during the review of Exxon Mobil Corp.‘s $63 billion acquisition of Pioneer. This led to specific conditions on the deal, including Sheffield’s exclusion from Exxon’s board. 4. Broader Context: The investigation aligns with a U.S. Senate budget committee’s probe into alleged collusion between nearly 20 large oil and gas producers and OPEC. Senator Sheldon Whitehouse is actively involved in this inquiry. 5. Industry Impact: The scrutiny and potential findings could have significant implications for the oil and gas sector, influencing regulatory actions, market dynamics, and corporate governance.

FTC’s Attack on Pioneer Sends Ripples Through Shale Industry: A Closer Look 🛢️🔍 The Federal Trade Commission’s recent decision to approve Exxon’s acquisition of Pioneer Natural Resources with a condition attached has sent shockwaves through the shale industry. Here are the key points from the situation: Background: • The FTC approved the $60-billion deal between Exxon and Pioneer, with the condition that Scott Sheffield, former CEO of Pioneer, does not join the combined company’s board. • Allegations were made against Sheffield for colluding with OPEC and OPEC+ members to limit production and raise oil prices, sparking concerns in the shale oil sector. FTC’s Allegations and Response: • The FTC accused Sheffield of engaging in anticompetitive coordinated output reductions, leading to higher crude oil prices that could impact American consumers and businesses. • Pioneer defended Sheffield, stating that his actions were aimed at protecting the U.S. oil industry during a challenging period of low oil demand in 2020. Industry Implications: • The FTC’s decision has raised concerns among shale executives about future mergers and acquisitions, as the regulator has taken a more adversarial stance towards the oil industry. • Analysts suggest that the FTC’s move against Sheffield signals a shift in its approach towards oil industry mergers, potentially impacting consolidation efforts. Political Context: • Some view the FTC’s action as a political move, reflecting the government’s stance on Big Oil and its efforts to appease anti-oil sentiments among key voter demographics. • President Biden and Democrats have been focusing on climate change and oil industry regulation, with recent initiatives targeting Big Oil and LNG export capacity. Future Outlook: • The FTC’s decision and broader regulatory scrutiny may influence the direction of the shale industry, impacting consolidation activities and strategic decisions. • The political landscape and public sentiment towards the oil industry could further shape regulatory actions and industry dynamics in the coming months. The FTC’s intervention in the Exxon-Pioneer deal and the allegations against Scott Sheffield have raised questions about the future of the shale industry and the regulatory environment surrounding oil industry mergers and operations. The evolving landscape underscores the complex interplay between regulatory policies, industry practices, and political dynamics in shaping the energy sector’s trajectory. #FTC #ShaleIndustry #OilIndustry #RegulatoryScrutiny #Exxon #PioneerNaturalResources 🌐🛢️🔍

𝙑𝙞𝙩𝙖𝙡 𝙀𝙣𝙚𝙧𝙜𝙮 𝘼𝙘𝙦𝙪𝙞𝙧𝙚𝙨 $1.1 𝘽𝙞𝙡𝙡𝙞𝙤𝙣 𝙋𝙚𝙧𝙢𝙞𝙖𝙣 𝘼𝙨𝙨𝙚𝙩𝙨 𝙞𝙣 𝙋𝙖𝙧𝙩𝙣𝙚𝙧𝙨𝙝𝙞𝙥 𝙬𝙞𝙩𝙝 𝙉𝙤𝙧𝙩𝙝𝙚𝙧𝙣 𝙊𝙞𝙡 𝙖𝙣𝙙 𝙂𝙖𝙨 Vital Energy, alongside NOG - Northern Oil & Gas, Inc. (NYSE: NOG), has secured a $1.1 billion deal to purchase Permian assets from Point Energy Partners. Vital Energy will gain 80% of the assets, boosting its daily output by 30,000 barrels and adding 16,300 net acres. This all-cash transaction is part of the ongoing consolidation trend in the shale industry, highlighted by recent major deals like Exxon’s acquisition of Pioneer Natural Resources and Chevron’s acquisition of Hess Corp. Mergers and acquisitions in U.S. oil and gas reached a record $51 billion in Q1 2024, with a significant focus on the Permian. Regulatory oversight could impact future consolidations, but the drive for asset acquisition remains strong. #Energy #OilAndGas #PermianBasin #MergersAndAcquisitions #VitalEnergy https://lnkd.in/gwfME_Fr

U.S. oil production will decline if the corporate-acquisition spree sweeping the shale sector is prolonged, according to a Federal Reserve Bank of Dallas survey. More than 50% of oil executives told the Dallas Fed they foresee lower domestic crude production if the consolidation trend continues for five years, according to second-quarter survey results released Wednesday.  “Consolidation by E&P firms has curtailed investment in exploration,” an unidentified executive was quoted as telling the bank. “The last few years of mergers and acquisitions have decreased activity in the oil patch,” another said. About 48% expects “slightly lower” production and another 6% foresee “significantly lower” production. https://lnkd.in/gkRSwGPW

Aethon Energy Wins Deal of the Week Aside from the billion-dollar deals this week in the scene-stealing Permian, a much smaller acquisition in the gas-rich Haynesville might well take the prize for best bargain. Reese Energy Consulting today is following the latest from Dallas-based Aethon Energy, an investment firm and E&P, which has stealthily built its Haynesville position over the last eight years. Back in 2014, large operators there like Shell and Encana Corporation were staking For Sale signs on their assets in a basin that mostly fell into slumber over the next two years. But 2016 brought a Haynesville reawakening. Private operators moved in to nudge the sleeping gas giant, the same year the nation’s first LNG export cargo set sail from La., bound for Brazil, and everyone and their French poodle wanted in on the burgeoning LNG biz. More terminals to build; more gas supplies to feed them. And Aethon’s gas-to-LNG strategy started paying off. The company is currently the Haynesville’s top dog producer—at least until Chesapeake Energy’s merger with Southwestern Energy gets a government kiss. But no matter. Aethon is all eyes on growth now with its shiny new acquisition of Tellurian Inc.’s Haynesville assets for $260 million. And that might well be a steal. Analysts report the sale, which consists of 29,883 net acres, interests in 167 producing wells, and midstream bones, is $100 million less than their book value. Tellurian, which reported $25.5 million in 1Q gas revenues, is cash hungry to help save its beleaguered $25 billion Driftwood LNG project. As part of the deal, the two have signed an HOA that would see Aethon buying 2 MPTA of LNG should Driftwood become a reality. The agreement is non-binding. What do you think? Learn more about REC and our natural gas and LNG consulting services at https://lnkd.in/ewhkGFa.           

Aethon Energy Wins Deal of the Week Aside from the billion-dollar deals this week in the scene-stealing Permian, a much smaller acquisition in the gas-rich Haynesville might well take the prize for best bargain. Reese Energy Consulting today is following the latest from Dallas-based Aethon Energy, an investment firm and E&P, which has stealthily built its Haynesville position over the last eight years. Back in 2014, large operators there like Shell and Encana Corporation were staking For Sale signs on their assets in a basin that mostly fell into slumber over the next two years. But 2016 brought a Haynesville reawakening. Private operators moved in to nudge the sleeping gas giant, the same year the nation’s first LNG export cargo set sail from La., bound for Brazil, and everyone and their French poodle wanted in on the burgeoning LNG biz. More terminals to build; more gas supplies to feed them. And Aethon’s gas-to-LNG strategy started paying off. The company is currently the Haynesville’s top dog producer—at least until Chesapeake Energy’s merger with Southwestern Energy gets a government kiss. But no matter. Aethon is all eyes on growth now with its shiny new acquisition of Tellurian Inc.’s Haynesville assets for $260 million. And that might well be a steal. Analysts report the sale, which consists of 29,883 net acres, interests in 167 producing wells, and midstream bones, is $100 million less than their book value. Tellurian, which reported $25.5 million in 1Q gas revenues, is cash hungry to help save its beleaguered $25 billion Driftwood LNG project. As part of the deal, the two have signed an HOA that would see Aethon buying 2 MPTA of LNG should Driftwood become a reality. The agreement is non-binding. What do you think? Learn more about REC and our natural gas and LNG consulting services at https://lnkd.in/ewhkGFa.           

Mega Mergers to Mega Sales: The Next Phase in Oil, Chevron, ConocoPhillips, and Occidental U.S. oil and gas companies are facing a tough task: they need to unload $27 billion in assets to pay their investors. #Chevron, #ConocoPhillips, and #Occidental Petroleum are aiming to raise between $16 billion and $23 billion from selling off assets after their mergers. With fewer buyers and more stringent regulatory reviews, the process of selling these assets is likely to extend into next year, complicating the landscape for these oil giants. Read more here: https://lnkd.in/dHDiE8XK