In the ever-evolving landscape of U.S. oil production, major players ExxonMobil and Chevron are reassessing their positions in the Bakken shale play in North Dakota, even as they double down on the prolific Permian Basin in Texas and New Mexico. As of September 2025, both companies have taken concrete steps to trim their Bakken operations, signaling a strategic pivot toward higher-return assets amid fluctuating oil prices and investor demands for capital discipline. This shift not only reflects a broader industry trend of portfolio optimization but also raises questions about the future of mature basins like the Bakken, while potentially freeing up capital for reinvestment elsewhere.
Trimming Bakken Exposure: Exxon’s Asset DivestitureExxonMobil, the largest U.S. oil producer, recently offloaded a portion of its Bakken assets to Chord Energy Corp. for $550 million in cash. The deal, announced in mid-September 2025, involves properties in the Williston Basin managed by Exxon’s XTO Energy unit. This move aligns with Exxon’s ongoing efforts to streamline its portfolio and redirect resources to core growth areas, particularly the Permian Basin and offshore Guyana.
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The sale comes on the heels of earlier reports from late 2024 indicating Exxon was exploring divestitures in the Bakken valued at over $500 million, covering around 49,000 net acres.
By shedding these assets, Exxon is effectively acknowledging the Bakken’s maturation—production has softened in recent years due to operator consolidation and efficiency gains, but the basin no longer offers the same explosive growth potential as the Permian. Instead, Exxon is prioritizing its Permian operations, where it aims to maximize production and double shale recovery rates as part of its top priorities for 2025.
This strategic refocus extends beyond the Permian. Exxon’s investments in Guyana, where massive offshore discoveries continue to yield high-margin barrels, underscore a broader diversification away from U.S. shale dependency. However, the Bakken divestiture highlights a deliberate move to de-emphasize less competitive onshore basins, allowing Exxon to explore or bolster positions in emerging or underappreciated plays, such as potential expansions in other U.S. regions or international opportunities.
Chevron’s Rig Reductions Post-Hess Acquisition
Chevron’s approach to the Bakken tells a similar story of recalibration. Following its $53 billion acquisition of Hess Corp. in the summer of 2025—which brought significant Bakken assets into Chevron’s fold—the company has signaled plans to scale back drilling activity in the region.
Specifically, Chevron intends to reduce its rig count in the Bakken from four to three starting in the fourth quarter of 2025, as revealed through updates from Hess Midstream LP, in which Chevron holds a 37.8% stake.
This rig cut has immediate ripple effects, prompting Hess Midstream to trim its growth outlook and forecast relatively flat adjusted EBITDA in 2026 compared to 2025.
Chevron’s decision reflects a maturing Bakken play where output is softening, offset somewhat by operational efficiencies but challenged by consolidation among operators. Meanwhile, Chevron is channeling its efforts into the Permian, where it forecasts a 9-10% production increase in 2025 and is implementing innovative techniques like “triple-frac” to cut costs and completion times.
Beyond the Permian, Chevron’s strategy includes a “strategic reinvention” for 2025, emphasizing cash generation over aggressive growth in mature areas.
This could open doors to other basins, such as the Haynesville for natural gas or even offshore Gulf of Mexico plays, as the company seeks to balance its portfolio in a low-growth oil market. The Bakken adjustments are part of a broader effort to maintain discipline, especially after the Hess deal expanded its footprint but also inherited commitments in less prioritized regions.
Implications for CapEx Budgets
These Bakken maneuvers are poised to influence both companies’ capital expenditure (CapEx) budgets significantly. For Exxon, the $550 million from the asset sale provides immediate liquidity that can be redeployed into higher-priority projects. The company’s 2025 CapEx guidance stands at $27-29 billion, with a focus on Permian optimization and low-carbon initiatives.
By divesting non-core Bakken assets, Exxon could reduce overall spending in mature basins by 5-10%, freeing up funds for Permian infrastructure or Guyana developments, potentially lowering breakeven costs and improving returns.
Chevron, meanwhile, has already announced a $2 billion year-over-year reduction in its 2025 CapEx and affiliate budgets, signaling a shift toward efficiency.
The Bakken rig cut could further trim CapEx by $100-200 million annually, based on typical drilling costs, allowing reallocation to Permian innovations like triple-frac, which promise 12% cost savings per well.
Overall, this focus away from expansive Bakken commitments could help both majors keep CapEx flat or declining relative to production growth, enhancing capital efficiency in a market where oil prices hover around $70-80 per barrel.
Investor Impacts: Opportunities and Risks
Investors in Exxon and Chevron stand to benefit from these strategic shifts, but not without some volatility. For Exxon, the Bakken sale bolsters its balance sheet, supporting a robust $20 billion annual buyback program and potentially higher dividends.
Analysts view this as a positive for long-term value, with Exxon’s emphasis on Permian and Guyana expected to drive earnings growth, potentially outperforming peers like Chevron in 2025.
However, if oil prices weaken further, reduced Bakken exposure could limit diversification, exposing investors to Permian-specific risks like pipeline constraints.
Chevron’s rig reduction has already sparked market reactions, with Hess Midstream shares plunging 10-11% on the news, reflecting concerns over throughput volumes.
For Chevron shareholders, the move signals disciplined capital allocation, potentially boosting free cash flow for dividends (yielding around 4%) and share repurchases. Yet, the integration of Hess’s Bakken assets post-acquisition adds complexity; any further slowdowns could pressure earnings if not offset by Permian gains. In investor comparisons, Exxon often edges out Chevron for 2025 due to superior capital efficiency, but both are seen as resilient in a $50 oil stress test.
As the industry eyes 2025, Exxon and Chevron’s Bakken strategies underscore a key theme: prioritizing high-margin basins like the Permian while judiciously managing exposure to others. This could lead to more exploration in alternative U.S. plays or international frontiers, ultimately benefiting investors through enhanced returns and sustainability. However, the Bakken’s fate remains uncertain—will it attract smaller operators like Chord, or fade further amid the Permian’s dominance? Only time will tell.
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