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Exxon Mobil Corp. finalizing acquisition of XTO Energy for nearly $30B in stock

2009-12-15 01:29:35 (GMT) (Caymanmama.com - Business News)

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Dallas, Texas (CaymanMama.com) — American oil and gas corporation, Exxon Mobil Corp made headlines on Monday after announcing plans to purchase XTO Energy Inc. for approximately $30 billion in stock.

This acquisition is part of an effort to push the energy giant to the head of the continent’s expanding natural gas industry.

Upon completion of the deal, Exxon, the largest publicly traded energy company, automatically take its place as the nation’s top natural gas producer.

“This deal provides Exxon with some domestic momentum it didn’t have,” John Olson, a fund manager at Houston Energy Partners, said. “They are getting a huge acreage spread, with lots of shale gas plays.”

Monday’s announcement spawned a rush of industry-wide consolidation as companies such as Exxon hastily acted to bid on smaller players with compelling assets.

“There will be more of these deals, and it will make the industry more resilient to volatility in natural gas prices,” said Fadel Gheit, an analyst at Oppenheimer & Co.

The deal is still subject to XTO shareholder approval before it can be finalized, but when complete, will become Exxon’s largest acquisition since it purchased Mobil Corp in 1999.



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