After 144 Years in New Jersey, ExxonMobil (XOM.US) Plans to Relocate to Texas in Search of a More Favorable Regulatory Environment

ExxonMobil (XOM.US) is planning to move its legal registration from New Jersey to Texas, ending over a century of registration in New Jersey.

In a proxy statement filed on Tuesday, the oil giant stated that the move would place the company in a more favorable business environment, with local regulators more familiar with its operations, providing greater certainty for decision-making, and unifying its legal registration with its actual operational headquarters. Exxon has asked shareholders to vote in favor of this relocation proposal at the annual shareholder meeting in May.

The document mentions that establishing the legal registration in Texas “is expected to reduce the risk of frivolous lawsuits against the company and its directors and executives in the future.”

In recent years, Texas has continued to attract companies with its relaxed regulatory environment, favorable tax policies, and initiatives like establishing new stock exchanges. Two years ago, Tesla (TSLA.US) and SpaceX moved their legal registration from Delaware—home to nearly 70% of Fortune 500 companies—to Texas. Chevron (CVX.US) also relocated its actual headquarters from California to Houston last year.

If the move is finalized, Exxon’s corporate bylaws, director fiduciary duties, shareholder voting rights, and other governance matters will be governed by Texas law. Additionally, Texas’s regulatory and political environment is more friendly to the fossil fuel industry.

In 2024, Exxon filed a lawsuit attempting to block shareholder proposals related to greenhouse gas emissions reductions. The case was dismissed after the relevant shareholders withdrew their proposals and pledged not to submit similar motions again. Last year, Texas introduced new regulations requiring shareholders to hold at least $1 million in company shares to submit proposals, effectively excluding small and medium shareholders.

Exxon stated that the majority of its senior executives and nearly one-third of its global employees currently work in Texas.

Exxon’s history dates back to 1882 when Standard Oil was registered in New Jersey, founded by John D. Rockefeller in 1870. By the late 19th century, Standard Oil controlled most of the U.S. refining capacity and became the world’s largest and most influential oil producer. In 1911, the U.S. Supreme Court issued a landmark ruling to break up Standard Oil to promote industry competition. The New Jersey Standard Oil was the largest subsidiary after the breakup and was renamed Exxon in 1972.

The company’s ties to Texas began in 1919 when New Jersey Standard Oil acquired shares of Humble Oil & Refining Co., and its business rapidly expanded with the rise of the Texas oil industry. Before 1989, Exxon’s headquarters was located in New York, then moved to Irving, a suburb of Dallas; under current CEO Darren Woods, the company relocated its headquarters again in 2023 to Spring, a suburb of Houston.