ExxonMobil to sell Permian assets to Hilcorp in $1bn deal from

ExxonMobil to sell Permian assets to Hilcorp in $1B deal

Oil giant to divest assets as it focuses on Guyana, Brazil

HOUSTON - ExxonMobil has agreed to sell its Permian Basin assets to Hilcorp Energy Co. for $1 billion, the companies announced Monday. The deal is expected to close in the second half of 2023, subject to regulatory approvals.

The sale includes approximately 335,000 net acres in the Permian Basin, one of the most prolific oil-producing regions in the United States. ExxonMobil has been operating in the Permian Basin for more than 100 years, and the sale represents a significant divestment for the company.

ExxonMobil said it is selling the assets as part of its strategy to focus on its higher-margin businesses in Guyana and Brazil. The company has been investing heavily in these countries in recent years, and the sale of the Permian assets will allow it to free up capital for those projects.

Hilcorp to expand Permian footprint

For Hilcorp, the acquisition will add to its already significant presence in the Permian Basin. The company is one of the largest privately held oil and gas producers in the United States, and it has been actively acquiring assets in the Permian Basin in recent years.

The acquisition of the ExxonMobil assets will give Hilcorp a total of approximately 670,000 net acres in the Permian Basin. The company said it plans to invest heavily in the assets, which it believes have significant upside potential.

Deal highlights Permian's continued attractiveness

The sale of ExxonMobil's Permian assets highlights the continued attractiveness of the region to oil and gas companies. The Permian Basin has been a major driver of U.S. oil production growth in recent years, and it is expected to continue to play a key role in the country's energy future.

The sale also underscores the changing landscape of the oil and gas industry. Major oil companies are increasingly divesting their assets in mature basins like the Permian Basin in order to focus on more profitable opportunities in emerging basins like Guyana and Brazil.