ExxonMobil sells natural gas assets to BKV for $750 million

Exxon Mobil Corp said on Thursday it signed an agreement to sell its North Texas natural gas assets to producer BKV for $750 million, the company spun off Part of a non-core asset action.

Exxon Mobil, the largest U.S. oil producer, set a target three years ago to sell $15 billion in assets by December to pay down debt and focus on low-cost oil production. But the company has already achieved about half of its target as sales stalled during the pandemic.

A rebound in oil and gas prices this year has revived interest in its assets, Senior Vice President Neil Chapman told analysts in March.

The sale of the North Texas asset includes additional payments based on future natural gas prices, allowing the company to profit from rising fuel costs. The deal is expected to close by June 30.

Liam Mallon, president of ExxonMobil Upstream, said: "We are committed to developing opportunities at the lowest supply cost and delivering the most competitive returns to our shareholders."

Headquartered in Denver and majority-owned by Thai energy company Banpu PCL, BKV is the largest natural gas producer in the Barnett Shale region of northern Texas and has successfully drilled its first shale well in the region.

ExxonMobil is delivering assets in Asia, Africa and Europe, with a focus on Guyana, offshore Brazil, West Texas and the Permian Basin in New Mexico. It sells assets in Iraq, Chad, Nigeria, Canada, Arkansas and Ohio.