ExxonMobil to Sell Barnett Shale Assets for $750 Million
May 19 2022 - 3:00PM
Business Wire
- 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
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.
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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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