Tags: exxon | permian | basin | oil

Exxon Boosts Permian Basin Holding in Deal Worth up to $6.6 Billion

Image: Exxon Boosts Permian Basin Holding in Deal Worth up to $6.6 Billion

(AP)

Tuesday, 17 Jan 2017 06:15 AM

 

Exxon Mobil Corp. said on Tuesday it would buy companies owned by the Bass family of Texas in a deal worth up to $6.6 billion that would boost it presence in the Permian Basin, one of the country's most cost-effective oil fields.

Exxon said the acquired companies together hold about 275,000 acres of leasehold, producing more than 18,000 net oil equivalent barrels per day (boepd).

Exxon said its output from the basin is currently about 140,000 boepd, net.

An uptick in oil prices has been encouraging healthier energy companies to buy up assets – especially in the Permian Basin, which straddles Texas and New Mexico – that will give them a competitive edge once prices move higher.

Numerous companies including SM Energy Co. and EOG Resources Inc. have snapped up acreage in the Basin. The latest deal was Noble Energy Inc. agreeing to buy smaller rival Clayton Williams Energy Inc. for about $2.7 billion.

Exxon said it would make an upfront payment of $5.6 billion in stock. It will also make cash payments totaling up to $1 billion, from 2020 through no later than 2032, corresponding with the development of the resource, Exxon said.

The properties are a major addition to Exxon's unconventional liquids portfolio managed by its unit XTO Energy Inc., Exxon Chief Executive Darren Woods said.

Exxon's shares were up about 0.9 percent, compared with a 0.32 percent rise in the S&P energy index as crude oil prices gained.

© 2017 Thomson/Reuters. All rights reserved.

 
1Like our page
2Share
Companies
Exxon Mobil Corp. said on Tuesday it will buy companies owned by the Bass family of Fort Worth, Texas in a deal worth up to $6.6 billion that would more than double its resource in the prolific Permian basin.Exxon said it will make an upfront payment of $5.6 billion in...
exxon, permian, basin, oil
241
2017-15-17
Tuesday, 17 Jan 2017 06:15 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved