Exxon Mobil’s shale subsidiary, XTO Energy, is exploring a potential sale of select oil and gas assets in the Eagle Ford basin of South Texas as the company continues to streamline its portfolio and focus on higher return regions, according to people familiar with the matter.
The assets under review cover roughly 168,000 net acres and include more than a thousand wells, some operated directly by Exxon and others held as non-operated interests or royalty positions. Sources said the package could be valued at more than one billion dollars, depending on market conditions and buyer interest.
An Exxon spokesperson confirmed that XTO Energy has begun assessing market interest in the Eagle Ford properties, describing the move as part of an ongoing strategy to optimize the company’s asset base.
“This marketing decision is consistent with our strategy to continually evaluate and optimize our portfolio,” the spokesperson said, declining to provide further details.
According to sources, Exxon recently opened a virtual data room to begin marketing the assets to potential buyers. The company has not hired investment banks to run a formal sale process and is handling outreach internally. The sources spoke on condition of anonymity because the discussions are confidential.
The Eagle Ford basin, once a centerpiece of U.S. shale growth, has become less central to Exxon’s long-term strategy as the company shifts capital toward regions offering larger scale and lower costs. Exxon has increasingly prioritized its dominant position in the Permian Basin of Texas and New Mexico, its offshore operations in Guyana, and investments in liquefied natural gas projects.
Exxon’s portfolio reshaping accelerated after its 60 billion dollar acquisition of Pioneer Natural Resources in 2024, a deal that significantly expanded the company’s Permian footprint. Since then, Exxon has sold several non-core assets, including its majority-owned French subsidiary Esso and its holdings in the Williston Basin across North Dakota, Montana, and Canada.
The company has also announced plans to cut roughly 2,000 jobs globally as part of broader cost reduction efforts.
Industry-wide, U.S. oil producers have been shedding assets following a surge in consolidation and dealmaking over the past few years. With oil prices under pressure and concerns growing about global oversupply, companies are increasingly selling lower-priority assets to strengthen balance sheets and protect shareholder returns.
Benchmark U.S. crude prices have fallen sharply over the past year, with West Texas Intermediate futures settling near 61 dollars a barrel, roughly 18 percent lower than the same period last year. At those levels, many shale operations face tighter margins, increasing pressure on producers to cut costs and focus capital on their most profitable fields.
Analysts say asset sales like XTO’s Eagle Ford review could accelerate if price weakness persists, potentially reshaping ownership across mature shale regions.
