ExxonMobil to Sell Barnett Shale Assets for $750 Million

Rhea-AI Summary

ExxonMobil has agreed to sell its Barnett Shale gas assets in Texas to BKV Corporation for $750 million, with potential additional payments tied to future natural gas prices. The transaction aligns with ExxonMobil's strategy to focus on high-return investments and was initiated after these assets were excluded from the development plan in 2020. The sale is expected to close in the second quarter of 2022, ensuring full employment offers for affected personnel. This move aims to strengthen ExxonMobil's competitive positioning in the market.

Positive

• Sale aligns with strategy to focus on low-cost, high-return investments.
• Transaction value is substantial at $750 million, with potential for additional payments.

Negative

• Barnett Shale assets had been removed from development plans since 2020, indicating past underperformance.

• Sale supports corporate strategy to prioritize investments on advantaged assets with lowest cost of supply
• Assets are part of North American gas resources removed from company’s development plan in 2020
• Transaction expected to close in second quarter

IRVING, Texas--(BUSINESS WIRE)-- ExxonMobil said today it signed an agreement with subsidiaries of BKV Corporation for the sale of operated and non-operated Barnett Shale gas assets in Texas for $750 million with additional payments contingent on future natural gas prices.

“We are focused on delivering the most competitive returns to our shareholders by developing opportunities with the lowest cost of supply and further strengthening our industry-leading upstream position,” said Liam Mallon, president of ExxonMobil Upstream Company.

“Our subsidiaries have operated in the Barnett Shale safely and responsibly for nearly two decades, and we are encouraged by BKV’s plans to develop the resource in line with its stated pathway to net zero greenhouse gas emissions by 2025.”

ExxonMobil removed the Barnett Shale gas assets operated by its subsidiaries XTO Energy Inc. and Barnett Gathering LLC from its development plan in 2020.

As part of the agreement, all employees with ExxonMobil subsidiaries in the Barnett Shale will receive full employment offers with BKV. The sale is expected to close in the second quarter of 2022.

About ExxonMobil

ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society’s evolving needs.

The corporation’s primary businesses - Upstream, Product Solutions and Low Carbon Solutions - provide products that enable modern life, including energy, chemicals, lubricants, and lower-emissions technologies. ExxonMobil holds an industry-leading portfolio of resources, and is one of the largest integrated fuels, lubricants and chemical companies in the world. To learn more, visit exxonmobil.com and the Energy Factor.

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Cautionary Statement

Statements of future events or conditions in this release are forward-looking statements. Actual future results, including closing of agreed divestments and realization of payments; performance of and results from other investments; and other business plans, could vary significantly depending on a number of factors including the supply and demand for oil, gas, and petroleum products and other market factors affecting the oil, gas, and petrochemical industries; the severity, length and ultimate impact of COVID-19 on people and economies and actions of governments in response to the pandemic; obtaining necessary approvals and consents and satisfaction of other conditions precedent contained in the applicable agreements; satisfaction of conditions related to contingent payments; the development and competitiveness of alternative technologies; actions of competitors and commercial counterparties; political and regulatory developments including environmental regulations; and other factors discussed in this release and under Item 1A Risk Factors in ExxonMobil’s most recent annual report on Form 10-K and under the heading “Factors Affecting Future Results” on the Investors page of our website at exxonmobil.com.

Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For convenience and simplicity, those terms and terms such as ExxonMobil, the corporation, company, our, we, and its are sometimes used as abbreviated references to specific affiliates or affiliate groups. Nothing contained herein is intended to override the corporate separateness of affiliated companies.

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ExxonMobil Media Relations

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Source: Exxon Mobil Corporation

FAQ

What is the value of the gas assets sold by ExxonMobil?

ExxonMobil sold its Barnett Shale gas assets for $750 million.

When is the sale of Barnett Shale assets expected to close?

The sale is expected to close in the second quarter of 2022.

Who is buying ExxonMobil's Barnett Shale gas assets?

The assets are being sold to BKV Corporation.

What is ExxonMobil's stock symbol?

ExxonMobil's stock symbol is XOM.

Why did ExxonMobil sell the Barnett Shale assets?

The sale supports ExxonMobil's strategy to prioritize investments in low-cost, high-return assets.