The drama, written and directed by Nichols, will star Matthew McConaughey, Reese Witherspoon and Tye Sheridan. Also in the cast are Ray McKinnon and Joe Don Baker.
"Mud," which recently began production in Arkansas, centers on two 14-year-old boys who encounter a mysterious fugitive in hiding, Mud. The boys are determined to help him escape from the law and reunite with the love of his life, played by Witherspoon.
The film is produced by Sarah Green, Lisa Maria Falcone and Aaron Ryder. Glen Basner is executive producer.
Shannon has been seen on Broadway in Ambassador and Butterflies Are Free. Paulson has been seen in Collected Stories and The Glass Menagerie, and Sparks' Broadway credits include Hedda Gabler and Take Me Out.
Shepard, who has also appeared on stage, has written the Tony Award-nominated plays True West and Buried Child.