Quick Take: Potential Sale of Exxon Mobil’s Bakken Assets
Exxon Mobil Corp. has been reported to be in the process of interviewing bankers to...
Exxon Mobil Corp. has been reported to be in the process of interviewing bankers to work on the sale of its assets in the Bakken shale play in North Dakota. Bloomberg News reported that insiders believe the sale price could be around $5 billion.
The oil giant has been in the process of cutting costs, generating about $3 billion from divestitures in 2021. In 2018, the company said it planned to generate $15 billion from the divesture of assets. Exxon Mobil launched a sale process for its assets in the Barnett Shale in November, which was expected to generate $400 million-$500 million. In December, the company was reported to be in advanced talks to sell its 5,000 wells in the Fayetteville Shale to Presidio Petroleum LLC.
Data shows that Exxon Mobil’s oil production in the Bakken fell by almost half, from 3.177 MMbbl per month in mid-2019, prior to the pandemic, to 1.763 MMbbl per month in late 2021. If Exxon Mobil does decide to pursue a deal, it would follow the $6 billion “merger of equals” between Whiting Petroleum Corp. and Oasis Petroleum Inc. on May 7.
The energy sector is off to a higher start, backed by strength in the underlying commodities and in the...
The energy sector is off to a higher start, backed by strength in the underlying commodities and in the major equity futures which rebounded from a down session as traders weighed Federal Reserve Chair Jerome Powell’s latest rate hike comments.
WTI and Brent crude oil futures showed gains early and extended their trend higher for the fourth-straight session, (but showing losses as of 10:00 AM ET) supported by supply risks from a potential European Union oil embargo on Russia and concern about attacks on Saudi oil facilities. European Union foreign ministers are split on whether to join the United States in banning Russian oil. Some countries, including Germany, say the bloc is too dependent on Russia's fossil fuels to withstand such a step. Strength in the dollar, which gained on comments from the Fed Chair about a more aggressive monetary tightening, weighed on prices.
Marathon Oil, Occidental surge to top of S&P 500 leaderboard as crude climbs
Energy (NYSEARCA:...
Energy (NYSEARCA:XLE+3%) was the easy winner of Monday's S&P sector standings, with crude oil prices climbing to their highest finish in nearly two weeks as European Union foreign ministers considered a ban on Russian energy.
April WTI crude (CL1:COM) closed +7.1% to $112.12/bbl and May Brent crude (CO1:COM) also settled +7.1% to $115.62/bbl, with both benchmarks closing at their highest levels since March 8, when prices ended at their highest since 2008.
Marathon Oil (NYSE:MRO+8.5%) and Occidental Petroleum (NYSE:OXY+8.4%) rocketed to the top of the S&P leaderboard.
The conflict has pushed the world toward its biggest oil supply shortage in decades, the agency said. Its ideas include slashing speed limits and making public transportation more affordable, though the IEA acknowledged the supply shortage will still likely worsen.
Rating agency S&P Global has downgraded Russia's credit rating, as well as a slew of corporate...
Rating agency S&P Global has downgraded Russia's credit rating, as well as a slew of corporate ratings, since the war in Ukraine began. Russia's sovereign rating was cut deep into junk territory, and the agency said there are already 30 companies that have tumbled just as far. See the five charts that tell the tale of "Russia Inc."
