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ExxonMobil Taps Helix Alliance for Gulf of Mexico Decommissioning
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Key Takeaways
XOM selects Helix Alliance for Gulf of Mexico well decommissioning under a three-year agreement.
The deal includes well intervention, diving, heavy lift, and logistics to retire offshore assets.
The move aligns with XOM's emissions goals and Helix's push into full-cycle offshore services.
Exxon Mobil Corporation (XOM - Free Report) has entered into a multi-year agreement with Helix Energy Solutions Group, Inc. (HLX - Free Report) to carry out plug and abandonment (P&A) operations in the U.S. Gulf of Mexico, a region where aging infrastructure is increasingly becoming the focus of decommissioning activity, per an Offshore Energy report. The three-year framework agreement was awarded to Helix’s Louisiana-based shallow water abandonment division, Helix Alliance.
The scope of work includes comprehensive offshore support, such as well intervention, diving, heavy lift and marine logistics — services that are critical for the safe and efficient retirement of end-of-life oil and gas infrastructure. This collaboration not only strengthens Helix’s growing presence in the decommissioning space but also underscores ExxonMobil’s commitment to responsibly managing its offshore legacy assets.
According to the U.S. Bureau of Safety and Environmental Enforcement, more than 2,000 wells in the Gulf of Mexico are permanently or temporarily abandoned, with operators facing stricter timelines to plug wells and remove platforms. ExxonMobil’s partnership with Helix signals a proactive approach to meeting these regulatory obligations, especially as scrutiny around offshore environmental risks intensifies.
Helix Strengthens Capabilities Amid Industry Momentum
This latest deal adds to a busy year for Helix Energy Solutions, which continues to expand its technical capabilities across both decommissioning and subsea services. Earlier in 2025, the company’s robotics division, Helix Robotics Solutions, launched its T1400-2 trenching system on a subsea cable project for Prysmian Group, marking its first deployment since refurbishment.
By securing high-profile contracts across both mature and emerging offshore energy needs, Helix is strategically positioning itself as a full-cycle offshore service provider, spanning field development, production support, and now, end-of-life asset retirement.
Meanwhile, ExxonMobil’s move fits within its broader asset rationalization and environmental stewardship strategy. As noted in its 2024 Corporate Plan, the company has pledged to reduce its Scope 1 and 2 emissions intensity from upstream operations by 40-50% within 2030 compared to 2016 levels. Proper management of offshore well closures is a key element in meeting that target.
With aging wells and stricter environmental standards on the rise, this agreement reflects the energy sector’s evolving priorities and Helix’s growing role in delivering on them.
Viper Energy generates strong, steady royalty income from its royalty acres in the prolific Permian Basin, with active rigs providing ample growth potential. The company boasts a lower debt-to-capitalization ratio than the composite stocks in the energy sector, indicating a healthier financial position.
The Zacks Consensus Estimate for VNOM’s 2025 EPS is pegged at $1.62.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B.
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ExxonMobil Taps Helix Alliance for Gulf of Mexico Decommissioning
Key Takeaways
Exxon Mobil Corporation (XOM - Free Report) has entered into a multi-year agreement with Helix Energy Solutions Group, Inc. (HLX - Free Report) to carry out plug and abandonment (P&A) operations in the U.S. Gulf of Mexico, a region where aging infrastructure is increasingly becoming the focus of decommissioning activity, per an Offshore Energy report. The three-year framework agreement was awarded to Helix’s Louisiana-based shallow water abandonment division, Helix Alliance.
The scope of work includes comprehensive offshore support, such as well intervention, diving, heavy lift and marine logistics — services that are critical for the safe and efficient retirement of end-of-life oil and gas infrastructure. This collaboration not only strengthens Helix’s growing presence in the decommissioning space but also underscores ExxonMobil’s commitment to responsibly managing its offshore legacy assets.
According to the U.S. Bureau of Safety and Environmental Enforcement, more than 2,000 wells in the Gulf of Mexico are permanently or temporarily abandoned, with operators facing stricter timelines to plug wells and remove platforms. ExxonMobil’s partnership with Helix signals a proactive approach to meeting these regulatory obligations, especially as scrutiny around offshore environmental risks intensifies.
Helix Strengthens Capabilities Amid Industry Momentum
This latest deal adds to a busy year for Helix Energy Solutions, which continues to expand its technical capabilities across both decommissioning and subsea services. Earlier in 2025, the company’s robotics division, Helix Robotics Solutions, launched its T1400-2 trenching system on a subsea cable project for Prysmian Group, marking its first deployment since refurbishment.
By securing high-profile contracts across both mature and emerging offshore energy needs, Helix is strategically positioning itself as a full-cycle offshore service provider, spanning field development, production support, and now, end-of-life asset retirement.
Meanwhile, ExxonMobil’s move fits within its broader asset rationalization and environmental stewardship strategy. As noted in its 2024 Corporate Plan, the company has pledged to reduce its Scope 1 and 2 emissions intensity from upstream operations by 40-50% within 2030 compared to 2016 levels. Proper management of offshore well closures is a key element in meeting that target.
With aging wells and stricter environmental standards on the rise, this agreement reflects the energy sector’s evolving priorities and Helix’s growing role in delivering on them.
XOM’s Zacks Rank & Key Picks
XOM currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at a few better-ranked stocks like Viper Energy, Inc. (VNOM - Free Report) and W&T Offshore, Inc. (WTI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Viper Energy generates strong, steady royalty income from its royalty acres in the prolific Permian Basin, with active rigs providing ample growth potential. The company boasts a lower debt-to-capitalization ratio than the composite stocks in the energy sector, indicating a healthier financial position.
The Zacks Consensus Estimate for VNOM’s 2025 EPS is pegged at $1.62.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B.