Exxon
Mobil Corporation and XTO Energy Inc. Announce Agreement
Irving,
Texas (December 14, 2009) -- Exxon Mobil Corporation (NYSE: XOM) and XTO Energy
Inc. announced today an all-stock transaction valued at $41 billion. The
agreement, which is subject to XTO stockholder approval and regulatory
clearance, will enhance ExxonMobil’s position in the development of
unconventional natural gas and oil resources.
Under
the terms of the agreement, approved by the boards of directors of both
companies, ExxonMobil has agreed to issue 0.7098 common shares for each common
share of XTO. This represents a 25 percent premium to XTO stockholders. The
transaction value includes $10 billion of existing XTO debt and is based on the
closing share prices of ExxonMobil and XTO on December 11, 2009.
“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.”
Tillerson
said the agreement is good news for the United States economy and energy
security, as it will enhance opportunities for job creation and investment in
the production of America’s own clean-burning natural gas resources.
XTO’s
resource base is the equivalent of 45 trillion cubic feet of gas and includes
shale gas, tight gas, coal bed methane and shale oil. These will complement
ExxonMobil’s holdings in the United States, Canada, Germany, Poland, Hungary
and Argentina.
Following
the transaction closing, ExxonMobil intends to establish a new upstream
organization to manage global development and production of unconventional
resources, enabling the rapid development and deployment of technologies and
operating practices to increase production and maximize resource value. The new
organization will be located in Fort Worth, Texas, in XTO’s current offices.
Bob
R. Simpson, chairman and founder of XTO, said that over the company’s 23-year
history, XTO has developed technical expertise and has assembled a substantial,
high-quality and diverse resource base in producing basins across the United
States.
“XTO
has a proven ability to profitably and consistently grow production and reserves
in unconventional resources,” said Simpson. “As the world’s leading energy
company, ExxonMobil will build on our success and open new opportunities for the
development of natural gas and oil resources on a global basis.”
Tillerson
said the agreement is part of an ongoing, disciplined evaluation of timely
investment opportunities to create value for shareholders, and to help meet
long-term global energy demand growth. The agreement is consistent with
ExxonMobil’s business model which is focused on sustainable, long-term value
creation. Completion of the transaction is expected in the second quarter of 2010.
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