Exxon Mobil’s XTO Energy Explores Sale of Eagle Ford Shale Assets in South Texas

Exxon Mobil’s shale-focused subsidiary, XTO Energy, is seeking buyers for a portion of its oil and gas assets in the Eagle Ford shale basin in South Texas, according to a statement confirmed by an Exxon spokesperson to Reuters. The move highlights Exxon’s ongoing strategy to optimize its upstream portfolio amid shifting market conditions and a renewed focus on core, high-return assets.

Sources familiar with the matter said Exxon recently opened a virtual data room to market the Eagle Ford assets, signaling the early stages of a potential divestment process. The assets cover approximately 168,000 net acres and are estimated to be worth more than $1 billion. They include more than 1,000 wells, ranging from Exxon-operated wells to non-operated interests and royalty-producing properties. Exxon is reportedly handling the marketing internally and has not engaged investment banks, underscoring a selective and controlled approach to the process. The sources requested anonymity due to the confidential nature of the discussions.

An Exxon spokesperson stated that XTO Energy is exploring market interest for select Eagle Ford assets and emphasized that the decision aligns with the company’s strategy of continually evaluating and optimizing its asset portfolio. No additional details were disclosed.

The potential sale comes as U.S. oil producers increasingly divest non-core assets following a wave of record-breaking mergers and acquisitions in recent years. Exxon, in particular, has sharpened its focus on the Permian Basin, spanning Texas and New Mexico, and its major offshore discoveries in Guyana, while also prioritizing liquefied natural gas investments. The company’s $60 billion acquisition of Pioneer Natural Resources in 2024 further strengthened its position in the Permian.

Exxon has already sold several assets, including its French subsidiary Esso and holdings in the Williston Basin across North Dakota, Montana, and Canada. The company has also announced plans to cut around 2,000 jobs globally.

Broader market pressures are also influencing asset sales, as concerns over global oil oversupply weigh on prices. U.S. benchmark West Texas Intermediate crude recently settled at $61.07 per barrel, down 18% from a year earlier, intensifying the need for producers to cut costs, improve cash flow, and focus on their most profitable operations.