After 144 years of being rooted in New Jersey, Exxon Mobil Corporation (XOM.US) plans to relocate to Texas in search of a more favorable regulatory environment.

Exxon Mobil Corporation (XOM.US) is planning to relocate its legal domicile from New Jersey to Texas, ending a registration history in New Jersey that lasted for over a century. The oil giant stated in the proxy voting materials submitted on Tuesday that by relocating, the company will be in a more favorable business environment, where local regulatory agencies are more familiar with its operations, providing greater certainty for decision-making. Exxon has asked investors to vote in support of this relocation proposal at the annual shareholders' meeting in May. The document mentions that having the legal domicile in Texas "is expected to reduce the risk of frivolous lawsuits against the company, its directors and executives in the future." In recent years, Texas has continued to attract businesses with its relaxed regulatory environment, favorable tax policies, and initiatives such as the establishment of new stock exchanges. Two years ago, Tesla, Inc. (TSLA.US) and SpaceX also relocated their legal domicile from Delaware to Texas - while Delaware is the registered location for nearly 70% of Fortune 500 companies in the U.S. Chevron Corporation (CVX.US) also moved its operational headquarters from California to Houston last year. If the relocation takes place, Exxon's articles of incorporation, director's fiduciary responsibilities, shareholder voting rights, and other governance matters will be subject to Texas law. Additionally, Texas regulatory and political environment is more friendly to the fossil energy industry. In 2024, Exxon filed a lawsuit in an attempt to block shareholder proposals related to greenhouse gas emission reductions. The case was dismissed after the shareholders withdrew the proposal and committed not to submit similar proposals in the future. Last year, Texas implemented new regulations requiring shareholders to hold at least $1 million worth of company stock in order to submit shareholder proposals, effectively excluding small and minority shareholders. Exxon stated that the majority of its executives and nearly one-third of its global employees currently work in Texas. Exxon's history dates back to 1882 when the Standard Oil Company was registered in New Jersey, founded by John D. Rockefeller in 1870. By the late 19th century, Standard Oil controlled most of the refining facilities in the United States, becoming the largest and most influential oil producer globally. In 1911, the U.S. Supreme Court issued a landmark decision to break up Standard Oil to promote industry competition. 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., rapidly expanding its operations along with the rise of the Texas oil industry. Until 1989, Exxon's headquarters were in New York and then moved to Irving, a suburb of Dallas; under the leadership of current CEO Darren Woods, the company relocated its headquarters again in 2023 to Spring, a suburb of Houston.