Saturday, March 25, 2023

Exxon selling Canada assets for US$1.47 billion

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ExxonMobil said it will be selling Canada assets later this year for a total cash consideration US$1.47 billion.

Exxon’s affiliates in Canada, Imperial Oil and ExxonMobil Canada, entered into an agreement with Whitecap Resources Inc. for the sale of XTO Energy Canada, which they jointly own. XTO is a leading natural gas producer in western Canada. It also has operations outside of Canada.

The assets include 567,000 net acres in the Montney shale, 72,000 net acres in the Duvernay shale and additional acreage in other areas of Alberta. Net production from these assets is about 140 million cubic feet of natural gas per day and about 9,000 barrels per day of crude, condensate and natural gas liquids, Exxon said.

RBC Capital Markets acted as exclusive financial advisor to Imperial and ExxonMobil Canada in connection with the transaction. Subject to regulatory approvals, the sale is expected to close before the end of the third quarter.

Exxon said the sale is consistent with its strategy to focus upstream resources on key assets to deliver long-term value to shareholders.

ExxonMobil is one of the largest publicly traded energy companies and is currently leading the development of Guyana’s petroleum resources.

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