Exxon to sell north Texas gas assets to BKV for $750 million
Exxon Mobil Corp (XOM.N) on Thursday said it signed a deal to sell North Texas natural gas properties to producer BKV Corp for $750 million, as part of a wider move to shed unwanted assets.
Exxon, the top U.S. oil producer, set a goal three years ago to sell by last December $15 billion in assets to pay down debt and focus on lower cost oil production. But it has achieved about half its goal as sales stalled during the pandemic.
North Texas assets sales include additional payments based on future gas prices, allowing the company to profit from rising fuel costs. The deal is expected to close by June 30.
“We are focused on delivering the most competitive returns to our shareholders by developing opportunities with the lowest cost of supply,” said Liam Mallon, president of Exxon Mobil Upstream Company.
Exxon is offering assets in Asia, Africa and Europe as it as focuses on Guyana, offshore Brazil and the Permian Basin of West Texas and New Mexico. It is marketing assets in Iraq, Chad, Nigeria, Canada, and in Arkansas and Ohio.
Exxon said it had removed the Barnett Shale assets operated by its subsidiaries XTO Energy Inc and Barnett Gathering LLC from its development plan in 2020.
Last year, it took in $2.6 billion from asset sales, up from $1 billion in 2020.
Source: Reuters (Reporting by Ruhi Soni in Bengaluru; Editing by Maju Samuel, Bernard Orr)