Exxon aiming to sell older Permian assets to Hilcorp in ~$1B deal – Reuters

Exxon Mobil (NYSE:XOM) has agreed to sell conventional oil drilling assets in the Permian Basin to privately-owned Hilcorp Energy for ~$1B, Reuters reported Tuesday.

Exxon (XOM) confirmed the sale but declined to name the buyer or valuation, according to the report, which added that the properties appeared to include conventional vertical wells, not horizontal wells used to pump shale.

“The sale is consistent with our strategy to focus investments on advantaged assets in our industry-leading portfolio,” an Exxon (XOM) spokesperson told Reuters, adding the deal is expected to close in Q1 2025.

The Exxon (XOM) assets to be purchased by Hilcorp are estimated to have net production of ~26K boe/day, and do not include assets acquired from Pioneer Natural Resources, the report said.

Hilcorp, which specializes in buying mature oil fields, has been among the most active buyers of assets being divested by public rivals; earlier this month, it finalized a $1B deal for Eni’s offshore Alaska assets.