Exxon to Sell Older Permian Assets to Hilcorp in $1 Billion Deal, Sources Say

Agreement Could Help Exxon’s Cash Flow

Exxon Mobil Corp. is in talks to sell its older assets in the Permian Basin to Hilcorp Energy Co. for about $1 billion, according to people familiar with the matter. The deal could help Exxon boost its cash flow and reduce its debt.

Sale Includes Rights to 240,000 Net Acres

The assets being sold include rights to about 240,000 net acres primarily in the northern part of the Permian, the people said. The deal could be announced as early as this week, though it’s still possible that talks could fall apart, the people said.

Exxon’s Permian Assets Have Been a Cash Drain

Exxon’s Permian assets have been a cash drain for the company in recent years. The company has spent billions of dollars developing the acreage but has yet to see a significant return on its investment. The sale of the older assets would allow Exxon to recoup some of those costs and free up capital for other projects.

Hilcorp Has Been Acquiring Permian Assets

Hilcorp has been an active acquirer of Permian assets in recent years. The company has spent more than $5 billion on acquisitions in the region since 2021. The purchase of Exxon’s assets would give Hilcorp a significant boost in the northern part of the Permian.

Exxon Declines to Comment

A spokesperson for Exxon declined to comment. A representative for Hilcorp didn’t immediately respond to a request for comment.