NorthAmOil: ExxonMobil reportedly considering Bakken sale

ExxonMobil is reportedly considering a sale of its assets in North Dakota’s Bakken play. Citing sources familiar with the matter, Bloomberg reported that the super-major had been approached by interested parties.
According to the sources, ExxonMobil could receive up to $5bn for the assets. And one of the sources added that the company was in the final round of interviewing banks to help launch a sale process.
The people cautioned, however, that a final decision on pursuing a sale had not yet been made and that ExxonMobil’s plans could still change.
The potential sale comes as oil prices remain at multi-year highs despite having fallen somewhat in recent days. Meanwhile, ExxonMobil continues its push to boost shareholder returns, and shedding non-core assets could help with this. According to its fourth-quarter earnings release, ExxonMobil generated $3bn in cash proceeds from asset sales in 2021. Now, it could continue this run of asset sales by offloading its Bakken properties.
The higher oil price environment could also bolster the Bakken’s prospects by making certain wells more economically attractive than they had been previously. However, analysts have cautioned that takeaway capacity constraints for associated gas production will limit how much Bakken activity could be spurred by recent price trends.
Nonetheless, deal-making in the play is also in the spotlight currently after Bakken players Oasis Petroleum and Whiting Petroleum announced a merger last week.