Exxon Mobil - XTO Deal
Exxon Mobil has agreed (subject to shareholder approval) to acquire XTO Energy for $31 billion and an assumption of $10 billion in debt. For more on the terms of the deal and commentary, see this article in the Houston Chronicle; this from the WSJ (subscription required); and this article from the NYT. According to an Exxon Mobil spokesperson: "'We think gas is going to grow more than any other major energy source. We think it's going to really become the fuel of choice for power generation and increase and replace coal,' Jeffers said. 'Depending on whatever carbon management scheme comes into play, that's going to change the economic scheme and push more people toward natural gas.'"
Very interesting.
[Update: For another good WSJ article, see here (subscription required).]
[Update: The Dallas Morning News is reporting that Exxon Mobil can void the deal if Congress passes a law that would make hydraulic fracturing illegal or commercially impracticable. Now that's an interesting provision ...]
[Update: For commentary from the Houston Chronicle, see here (moved up).]
