ExxonMobil’s plan to put $41 billion into the purchase XTO Energy Inc. has Louisiana oil and gas officials riding a natural gas high. “Exxon’s purchase of XTO is yet another example of how important a role natural gas is going to play in the future of our country,” says Gifford Briggs, vice president of the Louisiana Oil and Gas Association, which has spent the past year pushing clean-burning natural gas as the country’s bridge fuel for the 21st century.
“As Shell, BP and Exxon become more involved in shale plays and the development of natural gas, it should be a sign to all of us that a shift in America’s energy focus has begun,” Briggs adds, noting that the deal also speaks volumes about the importance of north Louisiana’s Haynesville Shale to the U.S. energy market. “In the Haynesville Shale Exxon now has a foothold in the largest natural gas play in the country."
The all-stock transaction announced yesterday will 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, which 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 Dec. 11, 2009.
“XTO is a leading U.S. unconventional natural gas producer, with an outstanding resource base, strong technical expertise and highly skilled employees,” said Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation, in announcing the deal. “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.” Tillerson also called the agreement good news for the U.S. economy and energy security, as it will enhance opportunities for job creation and investment in the production of America’s own clean-burning natural gas resources.
XTO’s resource base is the equivalent of 45 trillion 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.
Once the transaction closes -- it is subject to XTO stockholder approval and regulatory clearance -- ExxonMobil will establish a new upstream organization to manage global development and production of unconventional resources, enabling the rapid development and deployment of technologies and operating practices to increase production and maximize resource value. The new organization will be located in Fort Worth, in XTO’s current offices.
“XTO has a proven ability to profitably and consistently grow production and reserves in unconventional resources,” said Bob R. Simpson, chairman and founder of XTO. “As the world’s leading energy company, ExxonMobil will build on our success and open new opportunities for the development of natural gas and oil resources on a global basis.”
Tuesday's Blogs from the Bog!
Cajun favorites to comfort on Pinhook Road
Critic says Sharknado 2 even better; North Korea offers summer camp; Russia accused of nuclear violations and more national and international news for Tuesday, July 29, 2014.
It wouldn’t be a first, however, as the Chamber has thrown money behind Landrieu before.
The Democratic incumbent, seeking her fourth term in office, is a strong supporter of the Export-Import Bank, which helps finance exports of U.S. companies.
Summertime floral with panache
Three bedroom St. Martinville traditional or three bedroom Lafayette contemporary cottage
Acadiana's nightlife guide.
The world is a politically tense place these days with hot spots ranging from the Middle East to Ukraine. In Louisiana and Mississippi, where the political chessboard tends to be a lot less threatening and at times entertaining, this election season is living up to expectations.
As this year’s budget process slogs forward and the Lafayette Parish School Board maintains its hard-headed stance against using any of its more than $60 million reserve fund, another slate of critical programs have rolled through the chopping block, despite the ramifications for the school system.
Meat, cheese and veggies piled high on Texas toast
Louisiana has joined nine other states in support of Indiana’s appeal of a federal judge’s ruling that the Hoosier State’s ban on sam-sex marriage violates the Constitution.
The eclectic vibe of summer
Three bedroom River Ranch cottage or four bedroom Youngsville traditional home
The parent of Investar Bank says its second-quarter earnings fell to $1.1 million or 26 cents a share from $1.7 million of 44 cents a share in the same period a year ago.
1,554 rigs were exploring for oil and 315 for gas. Two were listed as miscellaneous. A year ago there were 1,770 active rigs.
The Saints are being cautious in an effort to minimize risk of re-injury.
Most personal auto insurance policies exclude coverage when people charge money to drive others in their personal vehicles.
In this letter to the editor, Lafayette Parish School Board member Shelton Cobb (the board's former president) weighs in on the difficulty behind this year's budget process, calling out a number of his fellow board members over their inability to drop their power struggle with the superintendent and make the interests of the students a top priority.
Acadiana's nightlife guide.
LSU Health Sciences Center says people with a common, hard-to-treat kind of lung cancer can join a new national trial to test drugs faster.
As New Orleans Saints coach Sean Payton and general manager Mickey Loomis spoke about the opening of training camp, steep, tree-covered mountains were in full view behind them.
The family of fallen cyclist Lon Lomas is speaking out after the release this week of the man charged with his death.
"The solutions are obvious: undo consolidation, or amend the charter to make this hybrid attempt at a new form of government work better."
A refreshing twist at a Lafayette institution comes served with a black bean salad stuffed avocado
Louisiana's 21 casinos took in $203.5 million statewide in June, edging up one-half of a percentage point from a year earlier.
Three bedroom Sunset Victorian or three bedroom Opelousas Acadian home
Louisiana designer commissioned for NYC Awards gift
The Board of Elementary and Secondary Education is considering whether to get involved in a lawsuit against Gov. Bobby Jindal for his attempts to undermine use of the Common Core education standards in Louisiana's public schools.
Business First Bank has announced plans for a Baton Rouge market expansion through a merger deal with American Gateway Financial Corp.