Oil major Exxon Mobil’s subsidiary XTO Energy is seeking buyers for some of its assets in the Eagle Ford shale basin in South Texas, an Exxon spokesperson confirmed to Reuters in a statement.
In recent days, top U.S. oil major Exxon opened a virtual data room to begin marketing the assets, two sources told Reuters earlier. The assets, which span about 168,000 net acres, are valued at over $1 billion, the sources said.
The assets XTO is selling include over a thousand wells, some of which Exxon operates, and others in which it holds passive, or “non-operated” interests, and those from which it earns royalties, the sources said.
Exxon is marketing the assets internally and has not hired investment banks, the sources added.
The sources requested anonymity as the talks are confidential.
An Exxon spokesperson said XTO Energy is exploring market interest for select Eagle Ford assets in South Texas.
“This marketing decision is consistent with our strategy to continually evaluate and optimize our portfolio,” the spokesperson said. They did not provide further details.
U.S. oil producers have been divesting assets and shedding non-core assets to focus on the most profitable parts of their businesses after a record dealmaking spree in recent years.
Exxon has been focused on its holdings in the Permian Basin of Texas and New Mexico, the top U.S. oilfield, as well as its assets in Guyana, considered one of the most prolific oil discoveries of recent decades, as two of its three priorities alongside LNG investments.
Exxon, which took over rival Pioneer Natural Resources in a $60 billion deal in 2024, has sold a number of assets in recent years. Exxon last year sold its majority-owned French subsidiary Esso, and also divested its holdings in the Williston basin of North Dakota, Montana and Canada.
The company has also announced plans to lay off around 2,000 workers globally.
Asset sales by producers are also likely to speed up as mounting global oversupply concerns push oil prices to levels at which many shale producers become unprofitable, hurting stock prices, and prompting producers to cut costs and shore up cash.
U.S. benchmark West Texas Intermediate crude oil futures settled at $61.07 a barrel on Friday, 18% lower than a year earlier.
(Reporting by Shariq Khan in New York and Sheila Dang in Houston; Editing by Arathy Somasekhar and David Gregorio)