In a bid to focus on evolving shale production, Exxon Mobil Corporation
According to Reuters, the oil and gas giant plans to divest its conventional oil drilling assets located in the Permian Basin of Texas and New Mexico.
As per the report, the assets are estimated to produce around 26,000 barrels of oil equivalent per day.
The company told Reuters that the asset sale to Hilcorp Energy "aligns with their strategy to concentrate investments on high-value assets within the industry-leading portfolio."
Notably, earlier in August, Exxon had disclosed the intention to sell older wells in the Permian's Central Basin that produce small but steady oil volumes.
At that time, the company said in a statement responding to questions from Bloomberg News that it is "exploring market interest for select conventional assets in West Texas and South East New Mexico."
This month, Exxon reported third-quarter revenues and other income of $90.016 billion, which missed the consensus of $93.938 billion while adjusted EPS of $1.92, beating the consensus of $1.88.
The company achieved a cumulative structural cost savings of $11.3 billion versus 2019, including an additional $1.6 billion of savings during the year and $0.6 billion during the quarter.
Investors can gain exposure to XOM via EA Series Trust Strive U.S. Energy ETF
Is Exxon A Good Stock To Buy?
When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future.
Exxon Mobil has reported average annual revenue growth of 18.04% over the past 5 years. .
It's also important to pay attention to valuation when deciding whether to buy a stock. Exxon Mobil has a forward P/E ratio of 13.51. This means investors are paying $13.51 for each dollar of expected earnings in the future. The average forward P/E ratio of Exxon Mobil's peers is 7.72.
Price Action: XOM shares are down 0.12% at $120.32 at the last check Tuesday.
