*

Exxon confirms sale of assets, declines to disclose buyer

and

valuation

*

Hilcorp won auction for the assets with offer of around $1

billion - sources

By Shariq Khan and David French

NEW YORK, Nov 12 (Reuters) - Top U.S. oil producer Exxon

Mobil Corp ( XOM ) has agreed to sell conventional oil drilling

assets in the Permian Basin of Texas and New Mexico to

privately-owned Hilcorp Energy for around $1 billion, four

sources familiar with the matter told Reuters.

The deal follows a trend of U.S. oil and gas companies

culling older properties following a record-breaking wave of

acquisitions. Private operators like Hilcorp have been among the

most active buyers of such assets.

Exxon confirmed the sale of the assets but declined to name

the buyer or valuation, using terms that signify the properties

were conventional vertical wells, not the horizontal wells used

to pump shale.

"The sale is consistent with our strategy to focus

investments on advantaged assets in our industry-leading

portfolio," the Exxon spokesperson said, adding the deal is

expected to close in the first quarter of 2025.

Reuters reported in June that Exxon was auctioning the

assets to focus on higher growth shale drilling properties,

following the completion of its $60 billion takeover of Pioneer

Natural Resources in May.

Hilcorp, which specializes in buying mature oilfields,

emerged as the winner of this auction, the sources said,

requesting anonymity as the auction was confidential.

Hilcorp did not respond to requests for comment.

Like other companies which took advantage of sharply

elevated commodity prices to pursue recent megamergers, Exxon

has been reviewing its portfolio to focus on its most profitable

assets while raising cash from selling so-called non-core assets

to shore up its balance sheet.

The Exxon assets which Hilcorp is buying are estimated to

have net production of about 26,000 barrels of oil equivalent

per day, one of the sources said. The sale does not include

assets acquired from Pioneer, they added.

Hilcorp, founded by billionaire Jeffery Hildebrand, has been

among the most active buyers of assets being divested by public

rivals. The company this month finalized a $1 billion takeover

of Italian group Eni's offshore Alaska assets.

It was also the undisclosed buyer in APA Corp's $950 million

sale of conventional Permian properties agreed in September,

sources told Reuters.

APA Corp did not immediately respond to requests for

comment.