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.”
"I have never seen anyone who worked harder for our people than Sen. Mary Landrieu, so I would like to share a synopsis of a few of the many things she has done to help Louisiana."
Even if Jimmy Graham's production dips while the star tight end recovers from a shoulder injury, it looks like Drew Brees won't have much trouble finding other targets.
A former campaign manager for Senate candidate Rob Maness is striking at the Republican contender's tea party support, saying Maness only sought to appeal to conservative organizations because he needed money for his campaign.
Ninety-two percent of public school teachers were rated either effective or highly effective in a report the state issued marking the second year of a new statewide evaluation process.
Corporations spending in state elections; Kenny G and Hong Kong; states resist gay marriage and more national and international news for Thursday, October 23, 2014.
Thursday's Blogs from the Bog!
School board members Mark Babineaux, Hunter Beasley and Tehmi Chassion can vote to fire Cooper — because we all know that’s exactly what they’ll do.
District 2 school board candidate Simon Mahan is hoping to unseat first-term incumbent and former Carencro Mayor Tommy Angelle in the Nov. 4 election.
District Attorney Mike Harson is showing his desperation by falsely attributing quotes to his opponent and blocking journalists from his social media.
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Ready to geaux in purple and gold
The governor is traveling the country laying the groundwork for a possible 2016 presidential campaign, but his approval ratings at home hover well below 50 percent.
State District Judge Bob Downing extended the order and delayed a planned Wednesday hearing about a permanent injunction while negotiations continue between Attorney General Buddy Caldwell and the waste disposal site operator.
New Louisiana higher education commissioner Joseph Rallo will be paid more than his predecessor.
The recently established Downtown Lafayette Restaurant & Bar Association will host a special viewing of the upcoming New Orleans Saints taking on the Carolina Panthers in the open air of Parc Sans Souci on Thursday, Oct. 30.
Belief in a national outbreak of the Ebola zombie virus is becoming more of a threat every day, and The Hayride — Louisiana’s one true bastion for unrelentingly conservative political commentaries — thought it wise to share a certain special someone's “important message” with readers Tuesday on what to do when, not if, it comes.
Acadiana's nightlife guide.
Elijah McGuire and Alonzo Harris each had four rushing touchdowns, and Louisiana-Lafayette rolled to 419 yards on the ground in a 55-40 victory over Arkansas State on Tuesday night.
Bill and Hillary Clinton are the validators-in-chief for Democrats struggling through a bleak campaign season in states where President Barack Obama is deeply unpopular.
JPMorgan Chase is giving $1 million to Louisiana's community and technical colleges, to help with workforce training efforts to match students to available jobs.
President Barack Obama is turning to black radio listeners to plead for midterm votes, a targeted approach to drum up Democratic support at a time when many candidates don't want him around in person.
Law firm unveils newly renovated 200-year-old building.
UL grad named web developer at BBR Creative
Lafayette-based emergency department staffing and management company raises $120 million in senior credit facilities through GE Capital, Healthcare Financial Services.
High-rise apartment building, parking garage, hotel and retail part of new development.
A common thread runs through many of those we oppose: Enshrining in the Constitution protections on programs and their funding sources has had a disastrous effect on Louisiana’s most important economic development engine.
"I am extremely disheartened by the political machines that are attempting to hijack my efforts along with others that advocate for children."
Landrieu, who is fighting to keep her seat for a fourth term, said that Ebola is serious and precautions should be taken, but she accused Republicans of using the virus outbreak in West Africa to "create fear" here at home.
The number of Louisianans with jobs continued to set records in September, but the state's unemployment rate kept rising.
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