Exxon Mobil Corp. is considering selling legacy conventional assets in the Permian Basin, the company said in a statement. (Source: Shutterstock.com)
Exxon Mobil Corp. is exploring a sale of select conventional assets in the Permian Basin.
Exxon Mobil’s shale subsidiary XTO Energy, “is exploring market interest for select conventional assets in West Texas and Southeast New Mexico,” the Texas-based supermajor said in a statement.
Operations are expected to continue as normal through the marketing process, Exxon said.
XTO is reportedly marketing packages of assets in the Permian’s Central Basin Platform that could fetch approximately $1 billion in a sale, depending on oil prices. The Central Basin platform is a legacy part of the Permian Basin focused on conventional production.
“This decision is consistent with our strategy to continually evaluate our portfolio,” the company said.
XTO and Exxon are also both active in the Midland and Delaware unconventional reservoirs, where horizontal shale development has transformed the Permian Basin into the nation’s top oil-producing region.
Exxon added Midland Basin depth through a $60 billion acquisition of Pioneer Natural Resources, which closed in May.
APA Corp., parent company of Apache, is also reportedly considering asset sales in the Central Basin Platform and the Permian’s Northwest Shelf.
APA closed its own $4.5 billion acquisition of Callon Petroleum in April, adding depth in the Midland and Delaware basins.
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