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Energy

ExxonMobil & XTO: Big Oil Gets Even Larger (XOM, XTO)

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By Douglas A. McIntyre Updated Published
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Big oil is about to get even larger.  Exxon Mobil Corporation (NYSE: XOM) and XTO Energy Inc. (NYSE: XTO) announced an all-stock merger transaction valued at $41 billion.  This merger, or acquisition, is meant to enhance ExxonMobil’s position in the development of unconventional natural gas and oil resources.

ExxonMobil has agreed to issue 0.7098 common shares for each common share of XTO.  The deal has already been approved by the boards of directors of both companies.  The agreement is subject to XTO stockholder approval and is also subject to regulatory approval.

Exxon is sitting on top of a mountain of cash as is, and this is an all stock deal.  It will be interesting to see how regulators treat this under the Obama administration, because this is the largest oil company making a large deal to become even larger.

Jon C. Ogg
December 14, 2009

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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