Monday, December 21, 2009

ExxonMobil planning $41 billion purchase of XTO Energy

Okay, so maybe I am getting a little carried away here, but this article brings the Exxon purchase of XTO closer to home, so I thought it was worth another post. This article is definitely pro-drilling, but it shows how big this company really is and how much they own here in New Mexico. This purchase makes for an absolutely enormous company with vast holdings throughout both the Marcellus and Barnett Shale (not sure how much they own in the Barnett Shale, but they are listed as a developer there).

ExxonMobil planning $41 billion purchase of XTO EnergyStaff Writer
Posted: 12/21/2009 12:00:00 AM MST

By Debra Mayeux

FCBJ editor

IRVING, Texas XTO Energy, with holdings in the San Juan Basin, announced Dec. 14, that it will be purchased by ExxonMobil Corporation in an all-stock transaction valued at $41 billion.

The sale, which is subject to XTO shareholders approval, includes XTO's debt of approximately $10 billion. The sale is not expected to be complete until the second quarter of 2010, because of the need for regulatory approval.

The agreement "brings together two organizations with highly complimentary skills and capabilities," ExxonMobil Corporation's CEO Rex Tillerson said in a Dec. 14 conference call. "XTO is a leading U.S. unconventional natural gas and oil producer with an outstanding resource base, strong operational expertise and highly skilled employees."

Those 3,000 company-wide employees, many of which live and work in the Four Corners region at XTO's holdings in the Rocky Mountains the San Juan and Raton Basins, are important to the new partnering company, Tillerson said. More>>>