Exxon Mobil Corp. has reached an agreement to sell its conventional oil drilling assets in the Permian Basin of Texas and New Mexico to Hilcorp Energy for approximately $1 billion, according to Reuters.

“The sale is consistent with our strategy to focus investments on advantaged assets in our industry-leading portfolio,” an Exxon spokesperson told Reuters, adding that the transaction is anticipated to close in the first quarter of 2025.

This decision follows Exxon’s announcement in June that it was auctioning these assets to focus on higher-growth shale drilling properties, a move that came after the completion of its $60 billion acquisition of Pioneer Natural Resources in May.

The assets being acquired by Hilcorp are estimated to have a net production of about 26,000 barrels of oil equivalent per day (boe/d). Notably, this sale does not include assets obtained from Pioneer.

Hilcorp, founded by billionaire Jeffery Hildebrand, has been a prominent player in the market for divested assets. This month, the company finalized a $1 billion acquisition of Eni’s offshore Alaska assets.

Additionally, Hilcorp was the undisclosed buyer in APA Corp’s $950 million sale of conventional Permian properties agreed upon in September, as Reuters reported.