XTO Energy

XTO Energy Inc. is an American energy company and subsidiary of ExxonMobil principally operating in North America. Acquired by ExxonMobil in 2010 and based out of Spring, Texas, it is involved with the production, processing, transportation, and development of oil and natural gas resources.[2][3] The company specializes in developing shale gas via unconventional means like hydraulic fracturing and horizontal drilling.[4][5][6]

ExxonMobil's acquisition of XTO made it the largest producer of natural gas in the U.S. Since then, XTO Energy's resource portfolio has tripled through several acquisitions. The company owns interests in approximately 40,000 active oil and natural gas sites across North America, with locations in Arkansas, Colorado, Kansas, Louisiana, Montana, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, West Virginia, Wyoming and Western Canada.

History

Early history

XTO Energy was founded in 1986, and was initially called Cross Timbers Oil Company. The company was started by Bob R. Simpson, Steve Palko and Jon Brumley with US$35 million raised by former Goldman Sachs co-chairman Robert Rubin.[10] Initially, the company purchased and developed long-lived oil and gas production properties.[11] The company went public in 1993.[12]

In 1996, Bob R. Simpson, one of the company's founders, became chairman and chief executive officer.[13] Simpson received his undergraduate and master's degrees in finance from Baylor University.[10] After Simpson took over, the company changed its strategy, from an even split of oil production and natural gas to focusing more heavily on natural gas.[11] In June 2001, the company changed its name from Cross Timbers Oil Company to XTO Energy Inc.,[14] to reflect the company's new focus on natural gas rather than oil.[14] "XTO" was chosen as it was the company's stock ticker symbol.[14] The company continued to grow through the acquisition and development of oil and natural gas properties, and in 2002 XTO Energy was ranked 5th on Fortune's "100 Fastest Growing Companies" list.[15]

ExxonMobil purchase

On December 14, 2009, ExxonMobil agreed to acquire XTO Energy Inc. through a merger.[16] ExxonMobil acquired XTO Energy in a deal valued at $36 billion, involving the issuance of 416 million shares of stock and assuming the company's $11 billion in debt.[17][18] The deal increased ExxonMobil's U.S. natural gas production to 3.68 billion cubic feet per day, making it the largest producer in the U.S.[19] The purchase by ExxonMobil was the largest by the company since the deal that created ExxonMobil in 1999.[20] The acquisition was finalized in June 2010.[4]

2011 - present

In June 2011, ExxonMobil acquired two natural gas companies in Pennsylvania—Phillips Resources Inc. and TWP Inc.—for $1.69 billion.[4] After the acquisition, both companies were managed by XTO Energy.[4] The acquisition added about 317,000 acres in Marcellus Shale to ExxonMobil's portfolio.[4] In August of the same year, ExxonMobil leveraged XTO Energy's expertise in a trade with Russian oil company Rosneft in a deal worth $3.2 billion, giving ExxonMobil access to oil and gas opportunities in the Russian Arctic.[21][22]

In September 2012, ExxonMobil and XTO Energy signed a land exchange agreement with Denbury Onshore LLC, acquiring 196,000 acres in the Bakken Shale in North Dakota and Montana.[23]

former name	Cross Timbers Oil Company
type	Subsidiary
industry	Petroleum industry
foundation	1986
founder	Bob R. Simpson, Steve Palko, Jon Brumley
location city	Spring, Texas
location country	United States
locations	Arkansas, Colorado, Kansas, Louisiana, Montana, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, West Virginia, Wyoming, Western Canada, Neuquen
key people	Staale Gjervik (president)‡R1R‡
products	Petroleum Natural gas
parent	ExxonMobil
homepage	xtoenergy.com

History

Early history

ExxonMobil purchase

2011 - present

Grants to petroleum educational institutions

Regulatory issues

External links

References