XTO Energy, a natural gas producer, is expected to be purchased by Exxon Mobil for $31 billion in stock and the assumption of $10 billion in debt, the New York Times reported this morning.
The Wall Street Journal adds that an agreement has been reached between the companies and the deal is pending XTO stockholder approval and regulatory clearance.
XTO Energy describes itself in the following way on its Web site:
XTO Energy Inc. has grown from its inception in 1986 to one of the nation's largest independent oil and gas producers. Our proven strategy has built a domestic reserve base with greater than 2.06 billion barrels of oil equivalent and a track record of increasing production and reserves, with a compound annual growth rate of about 24% and 29% respectively since going public in 1993.
XTO Energy claims to have the experience and expertise necessary "to acquire the best reservoir rock." It adds that it incorporates new technology and innovations to find untapped reserves and produce "healthy economic returns."
More from the AP:
Exxon Mobil will buy XTO Energy in an all-stock deal worth $31 billion as the oil giant moved aggressively Monday to capitalize on the growing supply of natural gas at home.
The deal could signal a new rush to own natural gas assets by major integrated producers, and perhaps the start of a significant consolidation in the energy industry.