Exxon's XTO division seeks buyers for Eagle Ford assets
Exxon Mobil subsidiary XTO Energy, which is part of the oil major Exxon Mobil, has confirmed in a'statement' that it is looking for buyers for its assets located in South Texas’ Eagle Ford shale.basin.
Two sources said that Exxon, the top U.S. energy company, opened a "virtual data room" to start marketing its assets in recent days. Sources said that the assets, which cover 168,000 acres net, are worth over $1 billion.
Sources said that XTO was selling over a 1,000 wells. Some of these are operated by Exxon, while others have passive or "nonoperated" -interests. It also has royalties from some of the wells.
Sources say that Exxon does not hire investment banks and is selling the assets internally.
Sources requested anonymity because the discussions are confidential.
A spokesperson for Exxon said: XTO Energy is exploring the market interest in select Eagle Ford assets located in South Texas.
The spokesperson stated that "this marketing decision is consistent our strategy to continually evaluate and optimise our portfolio". The spokesperson did not give any further details.
After a recent record-breaking deal-making spree, U.S. Oil producers are focusing on their most profitable business parts by shedding assets and non-core assets.
Exxon's three main priorities include its investments in LNG and its holdings in Permian basin of Texas and New Mexico. The Permian basin is the largest oilfield in the United States. Exxon has been selling assets over the past few years, after it acquired rival Pioneer Natural Resources for $60 billion in 2024. Exxon sold its majority-owned French subsidiary Esso last year, as well as its holdings in North Dakota, Montana, and Canada's Williston Basin.
The company also announced plans to?lay off around 2,000 employees globally.
As global oil oversupply worries increase, the asset sales of producers will also accelerate. Stock prices will drop, and many shale producers may become unprofitable.
The benchmark West Texas Intermediate crude futures in the United States settled at $61.07 per barrel on Friday. This is 18% less than it was a year ago. Shariq Khan reported from New York, Sheila Dang from Houston and Arathy Gregorio edited the story.
(source: Reuters)
