ExxonMobil Acquires XTO Energy for $41 Billion (XOM,XTO)
The agreement, which is still subject to approval by XTO stockholders, is expected to enhance Exxon's position in the development of natural gas and oil resources.
Under terms of the agreement, which has been approved by both boards, ExxonMobil will issue 0.7098 common shares for each share of XTO, representing a 25% premium to XTO shareholders.
The transaction value includes $10 billion of XTO's debt.
"We are pleased that ExxonMobil and XTO have reached this agreement," said Rex W. Tillerson, Chairman and Chief Executive Officer of Exxon Mobil Corporation.
"XTO is a leading U.S. unconventional natural gas producer, with an outstanding resource base, strong technical expertise and highly skilled employees. 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."
Shares of XTO are trading 19.6% higher in premarket trading.
by Chip Brian