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Exxon Mobil Launches Sale of Texas Oil and Gas Assets

Exxon Mobil launches the sale of its oil and gas properties in Texas as it executes on its previously announced plan to raise $15 billion from asset sales.
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Exxon Mobil  (XOM) - Get Exxon Mobil Corporation Report launched the sale of its oil and gas properties in Texas as the company executes a reorganization of its portfolio in order to focus on more lucrative assets. 

The sale is part of a plan conceived three years ago to raise $15 billion from asset sales. The timing of the sale comes as energy prices have started recovering from a slump during the pandemic. 

U.S. gas prices are up 75% year to date. West Texas crude shares were trading at $80.55 per barrel at last check. International benchmark Brent crude prices were trading at $82 per barrel. 

The company will open a data room on Thursday for its Barnett Shale holdings that include 2,700 wells across 182,000 acres in North Texas, an Exxon spokesperson confirmed to Reuters. 

The producing properties are valued at between $400 million and $500 million, Reuters reported.

Bids are due December 21 with plans for Exxon to close any sale in January. 

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Last month, the Wall Street Journal reported that Exxon is considering dropping several oil and gas developments as it reconsiders its project investment strategy.

Some members of the company's board have raised concerns about a $30 billion liquefied natural gas development in Mozambique and another multibillion-dollar gas project in Vietnam. 

The discussions were "constructive" Exxon told the Journal, while also saying that the company does not comment on internal discussions.

Concerns about carbon emissions and the intensive up-front multi-billion-dollar projects has some board members worried, according to the Journal.

Exxon shares climbed 1% to $65 per share Tuesday.