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.”
Michelle D. Lavergne, who worked for the Lafayette law office of L. Clayton Burgess for 13 years, faces up to 10 years in prison.
Sonnier, former media buyer and account exec at Sides, joins Acadian companies as marketing specialist; Maggard, who most recently worked for Potenza, joins Russo as director of media and PR.
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An obvious follow-up question for any Republican politician who accuses Democrats of being science deniers is one about science, to which Jindal bobbed and weaved like a welterweight champ.
The Lafayette City-Parish Council is expected to decide tonight (Tuesday) whether to go along with a proposal City-Parish President Joey Durel made in February’s State of the Parish Address and consolidate taxes for mosquito control and the parish health units into a broader tax program that would also cover animal control.
Jeff Gremillion delivers a touching eulogy, capturing the essence of his longtime friend.
U.S. District Judge Richard Haik has dismissed Greg Davis’ lawsuit against the LPSB, yet in his ruling, the federal judge doesn’t bite his tongue in pointing out the "threat" being posed by certain board members.
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Acadiana's nightlife guide.
Of all the political offices being contested throughout Lafayette Parish, the race for Broussard’s top police post has literally become one of the most heated.
A state district judge is deciding whether to issue an injunction against the enforcement of a last-minute retirement hike that lawmakers gave to the state police superintendent.
A new website is up for Louisiana's state government employees and retirees to choose their health insurance plans for next year, a choice they must make by October.
Radisson dumps NFL sponsorship over abuse; troops sent to fight Ebola; bomber kills troops and more national and international news for Tuesday, September 16, 2014.
Tuesday's Blogs from the Bog!
That fact that New Orleans led both games in the final 10 seconds of regulation, and lost each by a field goal or less, is of little solace.
The superintendent will make another go at getting a budget passed for the already commenced fiscal year as the LPSB is slated to meet tonight on the eve of the state’s budget adoption deadline.
A person familiar with the situation says New Orleans Saints running back Mark Ingram has a broken hand.
It seeks an investigation into a $100,000 fund transfer from Vitter's federal campaign account to an independent PAC supporting Vitter's 2015 candidacy for governor.
Landrieu has acknowledged that she improperly billed her Senate office for nearly $43,000 in charter costs that should have been paid from her campaign account.
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Authorities said that a Chevron Corp. subsidiary was still releasing natural gas Sunday from a pipeline off the Louisiana coast where a Saturday incident killed a maintenance worker.
When the Browns explained their plans to Brian Hoyer about bringing rookie Johnny Manziel into the game, Cleveland's starting quarterback bit his lip and devised one of his own.
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Meet the WWMB Class of 2014, extraordinary women guiding our exceptional community
Software development center represents third such project in Hub City this year.