Plaintiffs in an antitrust class action over oil prices have asked a federal judge in Nevada to force Pioneer Natural Resources to hand over communications involving its embattled former CEO Scott Sheffield that it gave to the U.S. Federal Trade Commission.
The FTC last week approved Exxon Mobil’s $64 billion purchase of Dallas-based Pioneer, but the agency barred Sheffield from Exxon’s board over allegations that he tried to collude with OPEC to reduce output of oil and gas in order to boost his company’s profits.
Pioneer is among the defendants in the Nevada case, in which consumers claim it and other energy companies conspired to curb output of shale oil, raising prices for retail gasoline and diesel fuel, marine fuel and residential heating oil.
Pioneer and Sheffield declined to comment on Thursday about the consumers’ demand in the Nevada litigation. The FTC, which is not a party in the lawsuits, declined to comment. Exxon is not a defendant in the cases.
The FTC said in its order against Sheffield that “through public statements, text messages, in-person meetings, WhatsApp conversations and other communications while at Pioneer, Sheffield sought to align oil production” in West Texas and New Mexico with OPEC.
“These documents and materials produced to the FTC are indisputably relevant and discoverable in this action as they track the core conspiratorial allegations by the plaintiffs,” attorneys for the consumers told Chief U.S. District Judge Miranda Du in Las Vegas.
Pioneer has opposed the request, according to the plaintiffs. Pioneer is expected to submit a separate filing to the court.
Pioneer in a statement about Sheffield last week said it was “neither the intent nor an effect of his communications to circumvent the laws and principles protecting market competition.”
The FTC’s complaint against Sheffield “reflects a fundamental misunderstanding of the U.S. and global oil markets and misreads the nature and intent of Mr. Sheffield’s actions,” Pioneer said.
The case is Rosenbaum v. Permian Resources, U.S. District Court, District of Nevada, No. 2:24-cv-00103-MMD-MDC.
For Daniel Rosenbaum: Patrick Coughlin of Scott+Scott
For Pioneer Natural Resources: Samuel Liversidge of Gibson, Dunn & Crutcher; and Boris Bershteyn of Skadden, Arps, Slate, Meagher & Flom
(Reporting by Mike Scarcella)