The basics:
- ExxonMobil plans to redomicile from New Jersey to Texas after nearly 150 years incorporated in NJ
- Company cited Texas’ business-friendly regulatory environment, modernized business statutes
- ExxonMobil said move is largely symbolic, will not affect operations, employees, assets
- Texas has attracted hundreds of corporate relocations in recent years amid competition among states for businesses
After nearly 150 years of incorporation in New Jersey, Exxon Mobil Corp. announced plans March 10 to redomicile to Texas.
The Exxon board of directors said the decision to align ExxonMobil’s legal base with the current location of its leadership and core operations will benefit shareholders.
The move marks the latest high-profile corporate entity to decide to set up shop in Texas, drawn by a business-friendly climate. ExxonMobil said it does not believe the change will bring significant effects to New Jersey.
Texas has steadily attracted an influx of businesses in the past five years. Other recent additions include Coinbase, Chevron and SpaceX.
ExxonMobil explicitly highlighted The Lone Star State’s congenial operating climate Tuesday.
Texas is the reason
ExxonMobil Chairman and CEO Darren Woods said that “Over the past several years, Texas has made a noticeable effort to embrace the business community. In doing so, it has created a policy and regulatory environment that can allow the company to maximize shareholder value.
“Aligning our legal home with our operating home, in a state that understands our business and has a stake in the company’s success, is important,” Woods said.
The board highlighted features such as modernized business statutes and the Texas Business Court. That statewide, specialized trial court aims to resolve certain complex business disputes efficiently.
In a filing with the U.S. Securities and Exchange Commission, ExxonMobil said Texas has deliberately fostered a “predictable and common-sense regulatory environment designed to support innovation, job creation, and economic growth, strengthening shareholder value over the long-term.”
Back in New Jersey, “predictable” and “common-sense” are not words typically used in the same context. Gov. Mikie Sherrill has made concerted efforts since taking office to turn that tide, so far, earning praise from business and industry leaders statewide. She delivers her first state budget address at 2 p.m. March 10.
Big star
Meanwhile, Texas has earned bragging rights when it comes to attracting business. The state points to “unrivaled business opportunities” along with strong rankings for business climate, GDP, job creation, population growth and business facilities.
According to the Texas Economic Development & Tourism office, 314 companies moved their HQ to the Lone Star State between 2015 and 2024. And nearly half came from another “high-cost” state, California.
A Texas Economic Development & Tourism report covering 2018–2024, identifies these companies as leaving New Jersey for the state:
- DB Technology to San Antonio
- NRG Energy Inc. to Houston
- Digility Inc. to Addison
- OKI Data Americas to Irving
On CNBC’s 2025 Top States for Business, N.J. dropped to No. 30 — and ranked 49th for business friendliness. Texas was No. 2 overall, 17th for business friendliness, and earned a B grade, versus the Garden State’s F. For cost of doing business, Texas earned an A mark and placed fifth; New Jersey ranked 38th with a D+ assessment.
Texas also boasts the second-largest state economy in the U.S. ($2.7 trillion), according to USA Today. New Jersey rounds out the top 10 at $847 billion.
ExxonMobil noted the, essentially, symbolic move to Texas will not affect business operations, management, strategy, assets or employee locations. In its proxy statement the board noted the company is a Texas corporation in all but name.”
At this point, ExxonMobil’s ties to the Garden State are largely historical, it said. According to the company, it has not held a board meeting here in more than four decades.
Incorporated in 1882 in the Garden State, Standard Oil of New Jersey (Jersey Standard) became Exxon Corp. in 1972. The company moved its base from here to Texas in 1989. In 1999, it combined with Mobil Oil Corp.
Why now?
Texas serves as the center for ExxonMobil’s executive leadership, corporate functions, major research facilities and U.S. workforce. Approximately 75% of its U.S. employees work in Texas, ExxonMobil said.
A company spokesperson did not respond to a request for the number of employees ExxonMobil has in New Jersey before press time.
As for the timing, the company noted in its SEC filing it has worked to consolidate business lines and reshape its cost and asset structure as part of a broader transformation. That process also included relocating R&D facilities from New Jersey to Texas, beginning in 2024.
ExxonMobil noted the move will not reduce shareholder rights. The board said it determined provisions under Texas state law are largely comparable to New Jersey (and in some cases, even stronger).
Referencing the state government’s social policies, the SEC filing also noted the move was a business decision. “Social issues are important to many people, but those issues come and go and are not our focus. We are invested in the long-term and that is the predictability we seek in Texas.”
In the Garden State, ExxonMobil said it continues to invest in its local lube plants, “and the state remains a strong place to do business.”
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