Exxon Mobil (XOM) – Get the Exxon Mobil Corporation report has started selling its oil and gas properties in Texas as the company reorganizes its portfolio to focus on more lucrative assets.
The sale is part of a plan devised three years ago to raise $ 15 billion through asset sales. The moment of the sell-off comes as energy prices have started to recover from a slump during the pandemic.
Gas prices in the United States have increased 75% since the start of the year. West Texas crude stocks were trading at $ 80.55 a barrel last check. International benchmark Brent crude prices were trading at $ 82 per barrel.
The company will open a data room for its Barnett Shale holdings on Thursday, which includes 2,700 wells on 182,000 acres in North Texas, an Exxon spokesperson confirmed to Reuters.
Producing properties are valued between $ 400 million and $ 500 million, Reuters reported.
Offers are expected on December 21, and Exxon plans to close any sales in January.
Last month, the Wall Street Journal reported that Exxon was considering scrapping several oil and gas developments as it reconsidered its strategy for investing in the projects.
Some members of the company’s board have raised concerns over a $ 30 billion liquefied natural gas development in Mozambique and another multibillion-dollar gas project in Vietnam.
The talks have been “constructive,” Exxon told the Journal, adding that the company was not commenting on internal discussions.
Concerns about carbon emissions and the initial intensive multi-billion dollar projects worry some members of the board of directors, according to the Journal.
Exxon shares were climbing 0.7% to $ 64.82 when last checked in morning trading on Tuesday.