Exxon buys natural gas producer

Dec 15 2009 by Iain Laing, The Journal

US OIL giant Exxon Mobil is buying Texan natural gas producer XTO Energy in a £25bn deal which includes £6bn of its new acquisition's debt.

Exxon chairman Rex Tillerson said the combined resources should benefit “consumers both here in the United States and around the world”.

The transaction is still subject to approval from XTO shareholders as well as regulators. Mr Tillerson also said that the agreement was good news for the US economy and energy security, as it would lead to job creation and investment in the production of clean-burning natural gas resources.

XTO chairman Bob Simpson said: “As the world’s leading energy company, Exxon Mobil will ... open new opportunities for the development of natural gas and oil resources on a global basis.”

“Exxon is making a bold statement about getting into the exploration and production business, but it’s hard to tell if this will start a wave of acquisitions,” said analyst Tom Schrader from Stifel Nicolaus Capital Markets.