Exxon Mobil’s subsidiary, XTO Energy, has recently entered into an agreement to divest its oil and gas assets situated in the Freestone Trend area of East Texas. The buyer is Houston-based oil company Hilcorp Energy, as confirmed in filings made with the Texas Workforce Commission.
The Freestone Trend area encompasses six Texas counties: Freestone, Limestone, Robertson, Leon, Milam, and Navarro. Exxon is opting to sell XTO’s assets in the Freestone region as part of a strategic shift towards prioritizing the most competitive assets within its portfolio, as conveyed in a statement released on a recent Wednesday. This deal entails the sale of approximately 2,800 active wells, gathering systems, and treatment plants, all spread across an extensive 336,000-acre expanse.
The specific terms and financial details of the transaction with Hilcorp have not been publicly disclosed. It’s noteworthy that this development comes in the wake of Exxon’s recent announcement to acquire Pioneer Natural Resources for an impressive sum of nearly $60 billion. This landmark deal positions the Spring-based oil giant with unparalleled production capacity in the prolific Permian Basin, located in West Texas and New Mexico. Exxon’s interest in Pioneer is driven by the quality of shale reserves within the Permian Basin, which have become increasingly challenging to access.
Unfortunately, the divestment also implies changes in the employment landscape. In December, Exxon anticipates that approximately 135 employees could face layoffs as a result of the asset sale. The company has committed to making concerted efforts to facilitate the transition of as many affected employees as possible to roles within Hilcorp, which is acquiring the assets. Employees who may not find placement with Hilcorp will be offered a severance package to support their transition.
