In a significant shift aimed at focusing on high-growth assets, ExxonMobil recently agreed to sell a set of conventional oil properties in the Permian Basin to privately-held Hilcorp Energy for about $1 billion. This transaction is part of Exxon’s broader strategy to consolidate its portfolio and direct investment towards shale assets, especially after its recent $60 billion acquisition of Pioneer Natural Resources, a major player in U.S. shale production.

The assets involved in this deal are mature conventional wells in the Permian Basin, which stretches across Texas and New Mexico. They yield approximately 26,000 barrels of oil equivalent per day (BOE/D), a steady but lower-growth output compared to the higher-potential shale operations Exxon now prioritizes. With this sale, Exxon aims to refine its asset base, focusing resources on higher-value shale assets, which it expects to drive stronger production and profitability over time​.

For Hilcorp, this acquisition aligns well with its strategic approach, which emphasizes acquiring and maximizing production from mature oilfields. Hilcorp, founded by Jeffery Hildebrand, has been particularly active in acquiring aging or underperforming oil assets from major energy companies. Known for its expertise in improving output from older fields, Hilcorp’s recent acquisitions also include a $1 billion purchase of assets from the Italian energy company Eni, further expanding its North American presence​.

This sale reflects a larger trend in the oil industry, where companies increasingly refine their portfolios to maintain a competitive edge in the evolving energy landscape. With this focus on optimization, both ExxonMobil and Hilcorp are positioning themselves to leverage their unique strengths in the rapidly changing market.