Exxon to Buy XTO Energy for $41B

HOUSTON, Dec. 14 (UPI) — Exxon Mobil Corp. Monday said it reached a deal to buy U.S. energy company XTO Energy Inc. for $41 billion.

For the the all-stock deal, Exxon will issue 0.7989 percent of a share for each XTO common share, or 25 percent more than recent closing prices, MarketWatch reported.

XTO Energy shares quickly jumped 15 percent with the announcement, while Exxon shares dropped 4 percent.

Standard & Poor’s stock analyst Tina Vital said, “we like the deal, which we view as fairly valued at W$2.96 per thousand cubic feet of proved reserves, in line with recent data.”

XTO would be “a compliment” to Exxon’s future plans, Vital said.

While the deal is certain to draw scrutiny from anti-trust regulators, Exxon said it would “enhance” it’s position “in the development of unconventional natural gas and oil reserves.”

Copyright 2009 by United Press International

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