What is the price tag on the ExxonMobil (Exxon Mobil) XTO merger?
LONDON (SHARECAST) – US oil giant Exxon Mobil has made a major push into the gas business with the acquisition of XTO Energy in an all-share deal worth $31bn. The value of the deal rises to $41bn with the addition of $10bn of debt at XTO. ExxonMobil will issue 0.7098 common shares for each common share of XTO, a premium of 25% to the XTO share price last Friday. “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,” said Rex W Tillerson, chairman and chief executive officer of Exxon Mobil. XTO’s resource base is the equivalent of 45trn 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, he added. Sources:
How about a huge energy deal to kick off your week. Exxon (XOM) is buying XTO Energy (XTO) for $41 billion. It will be a taken as a major bullish signal on natural gas. Earlier this month, Exxon made a presentation on how the natural-gas era was set to begin. They were serious. ——– IRVING, Texas–(BUSINESS WIRE)–Exxon Mobil Corporation 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 a
Exxon Mobil in $31bn merger with XTO Mon 14 Dec 2009 Exxon Mobil in $31bn merger with XTO LONDON (SHARECAST) – US oil giant Exxon Mobil has made a major push into the gas business with the acquisition of XTO Energy in an all-share deal worth $31bn. The value of the deal rises to $41bn with the addition of $10bn of debt at XTO. ExxonMobil will issue 0.7098 common shares for each common share of XTO, a premium of 25% to the XTO share price last Friday. Sources: http://www.sharecast.com/cgi-bin/sharecast/story.cgi?
