ExxonMobil Eyes $500M Sale of Bakken Shale Assets in North Dakota

Exxon Mobil Corporation XOM, the largest oil producer in the United States, is reportedly looking to sell some of its assets in North Dakota's Bakken shale formation. According to a Reuters report, the company aims for a deal that could fetch at least $500 million.

ExxonMobil is exploring market interest for a portion of its Bakken shale holdings, which include approximately 137 operated and 676 non-operated and royalty wells across 49,000 net acres in North Dakota. The planned sale could fetch more than $500 million, according to the report. This move is part of XOM's strategy to realign its portfolio after the $60 billion acquisition of Pioneer Natural Resources in May.

The sale is in sync with XOM's efforts to streamline its assets and focus on regions with higher growth potential. Despite the planned divestiture, ExxonMobil has emphasized its commitment to continued investment in North Dakota's shale production as part of its long-term strategy. According to energy data provider Rextag, the company's total production from the Bakken region currently exceeds 100,000 barrels of oil equivalent per day (boe/d).

This potential sale of Bakken assets follows XOM's auction of conventional drilling assets in the Permian Basin earlier this year. As the company evaluates its vast holdings, it focuses on enhancing its scale and production efficiency in core areas, such as the Permian and the newly acquired Pioneer assets. Many of the Bakken properties slated for sale are undeveloped, making them attractive for buyers looking to expand their land banks.

ExxonMobil's portfolio management aligns with its goal of capitalizing on high-growth opportunities while monetizing less critical assets, a strategy that is reshaping the U.S. shale landscape.

XOM's Zacks Rank & Key Picks

ExxonMobil currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, PEDEVCO Corp. PED and MPLX LP. While Archrock and PEDEVCO sport a Zacks Rank #1 (Strong Buy) at present, MPLX carries a Zacks Rank #2 (Buy).

Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

The Zacks Consensus Estimate for AROC's 2024 EPS is pegged at $1.04. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.

PEDEVCO is engaged in the acquisition and development of energy assets in the United States and Pacific Rim countries. PED stands to benefit significantly from its holdings in the Permian Basin, one of the most prolific oil-producing regions in the United States, as well as in the D-J Basin in Colorado, which includes more than 150 high-quality drilling locations.

The Zacks Consensus Estimate for PED's 2024 EPS is pegged at $0.08. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days.

MPLX derives stable fee-based revenues from long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership's robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.

The Zacks Consensus Estimate for MPLX's 2024 EPS is pegged at $4.29. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.

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