ExxonMobil to boost unconventional focus by acquiring XTO

By OGJ editors
HOUSTON, Dec. 14
-- ExxonMobil Corp. has agreed to buy XTO Energy Inc. in an all-stock deal valued at $41 billion that will be part of a strengthened focus by the energy giant on unconventional resources.

Since its founding in 1986, XTO has grown largely by acquiring mature producing properties and expanding reserves through the aggressive application of technology. It now holds large interests in major US shale, tight gas, and coalbed methane plays as well as the Bakken oil shale.

ExxonMobil said that after the transaction closes it will create an upstream organization to manage global development and production of unconventional resources. Outside the US, the company holds interests in unconventional resources in Canada, Germany, Poland, Hungary, and Argentina.

It estimated XTO’s resource base at 45 tcf of gas equivalent.

XTO ranks No. 8 in this year’s OGJ150 group of oil and gas producers with headquarters in the US, based on 2008 assets of $38.3 billion (OGJ, Sept. 21, 2009, p. 22). The ranking was one position below Chesapeake Energy Corp. and a position above Devon Energy Corp.

XTO’s production
In this year’s third quarter, XTO produced 2.42 bcfd of gas, 65,822 b/d of oil, and 22,010 b/d of natural gas liquids. It reported reserves on Dec. 31, 2008, of 13.86 tcf of gas equivalent, of which 85% was gas and 15% liquids, 64% proved developed producing and 36% proved undeveloped.

About 30% of XTO’s gas production comes from shales. The company’s net land positions in major shale plays are Barnett, 277,000 acres; Marcellus, 280,000 acres; Fayetteville, 380,000 acres; Woodford, 160,000 acres; and Haynesville, 100,000 acres.

Its Bakken oil shale position is 450,000 net acres.

About 45% of the company’s gas production is from tight gas basins, including Williston, Green River, Uinta, Piceance, San Juan, Permian, Anadarko, Arkoma, East Texas, Arkla, Gulf Coast, and Appalachian.

One of the company’s key plays is the Freestone trend of East Texas, where it holds 381,000 net acres and produced an average 816 MMcfd of gas, 598 MMcfd net to XTO, in the third quarter.

XTO’s position there and elsewhere expanded with its September 2008 merger of Hunt Petroleum Co. in a cash and stock acquisition worth $4.2 billion.

The ExxonMobil acquisition remains subject to approvals by regulators and XTO shareholders. The boards of both companies have approved the deal. About $10 billion of the acquisition value represents assumption of XTO debt.

Related Articles

ExxonMobil forecasts 35% higher world energy demand by 2040

12/15/2014 A significantly bigger global middle class, expanded emerging economies, and 2 billion more people will contribute to 35% higher world energy deman...

ExxonMobil forecasts 35% higher world energy demand by 2040

12/10/2014 A significantly bigger global middle class, expanded emerging economies, and 2 billion more people will contribute to 35% higher world energy deman...

Firms' third-quarter earnings climbed amid lower crude oil prices

12/08/2014 A sample of 58 oil and gas producers and refiners based in the US recorded a combined 38% jump in profits for this year's third quarter compared wi...

Chapman to succeed Pryor as ExxonMobil Chemical president

11/24/2014 Neil A. Chapman is expected to assume the roles of president of ExxonMobil Chemical Co. and vice-president of ExxonMobil Corp. following the retire...

Induced seismicity research effort identifies information gaps

11/10/2014 A federally coordinated effort to determine whether oil and gas activities are related to growing reports of induced seismic activity has identifie...

ExxonMobil, Linn to make second asset exchange this year

10/06/2014 ExxonMobil Corp. has agreed to trade interest in 500 net acres from South Belridge field near Bakersfield, Calif., to Linn Energy LLC, Houston, in ...

ExxonMobil 'winds down' Arctic well, obeys sanctions

09/29/2014 ExxonMobil Corp. released a statement that it is complying with all US sanctions on Russia after news reports that the operator had halted operatio...

AAPG ICE: ExxonMobil outlines international approach to unconventional development

09/22/2014 Global energy demand is expected to increase 35% to 2040, translating to 120 billion boe/year, or nearly 350 million boe/d, stated Rocky Becker, vi...

ExxonMobil ‘winding down’ Arctic well, complying with US, EU sanctions on Russia

09/19/2014 ExxonMobil Corp. released a statement that the company is complying with all US sanctions on Russia after news reports that the operator had halted...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts

On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.



Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected