Other stories: World’s 10 largest oilfield technology companies | World’s 10 largest petrochemicals companies | Oil industry giants: ADNOC | Oil industry giants: Saudi Aramco | Top 10 MENA Region mega projects | Top 10 billion dollar oil deals of the summer | 2009’s winners and losers in the oil industry | 10 events in oil’s history that shook the world | Top 10 Gulf mega projects | Top 10 largest publicly traded oil companies | World’s 10 largest oilfield services companies | World’s 10 largest oil and gas contractors
The US supermajor ExxonMobil has announced that is to acquire the Texas-based gas exploration company XTO Energy in an all-stock deal worth US$41 billion.
In a statement ExxonMobil said that it will issue 0.7098 common shares for each common share of XTO, representing a 25% premium to XTO stockholders. The transaction value also includes $10 billion of existing XTO debt and is based on the closing share prices of ExxonMobil and XTO on December 11, 2009.
“XTO is a leading U.S. unconventional natural gas producer, with an outstanding resource base, strong technical expertise and highly skilled employees,” Rex Tillerson, chairman and CEOI of Exxon Mobil Corporation.
“XTO’s strengths, together with ExxonMobil’s advanced R&D and operational capabilities, global scale and financial capacity, should enable development of additional supplies of unconventional oil and gas resources, benefiting consumers both here in the United States and around the world,” he added.
The move will allow ExxonMobil access to XTO’s resource base of 45 trillion cubic feet of unconventional gas and includes shale gas, tight gas, coal bed methane and shale oil.
Completion of the transaction is expected in the second quarter of 2010.
