Updates on XTO Energy and Exxon Deal.

Key words: xto, exxon mobil, xom, xto energy inc, exxon


New York Times revealed this morning that Exxon Mobil will purchase XTO Energy, which is a natural gas producer. The XTO Energy purchase will be worth $31 billion in stock and a presumed $10 billion in debt.


This is likewise confirmed with reports from The Wall Street Journal saying that there is ongoing agreement has been reached between the companies and the deal is underoing XTO stockholder approval and regulatory clearance.

XTO Energy releases a statement on its Web site:

XTO Energy Inc. has grown from its inception in 1986 to one of the nation's largest independent oil and gas producers. Our proven strategy has built a domestic reserve base with greater than 2.06 billion barrels of oil equivalent and a track record of increasing production and reserves, with a compound annual growth rate of about 24% and 29% respectively since going public in 1993.

More from the AP:

Exxon Mobil will buy XTO Energy in an all-stock deal worth $31 billion as the oil giant moved aggressively Monday to capitalize on the growing supply of natural gas at home.

The deal could signal a new rush to own natural gas assets by major integrated producers, and perhaps the start of a significant consolidation in the energy industry.

"Exxon is the group leader and it sets the trend. I would expect more acquisitions in the next three to six months," said Fadel Gheit, senior energy analyst for Oppenheimer. "Who that will be is the $64,000 question."

Exxon is closely watched in the industry and an acquisition like XTO could prompt other companies like Royal Dutch Shell PLC, BP BLC or Chevron Corp. to move.