MercoPress. South Atlantic News Agency

Exxon-Mobil buys Texas gas producer for 41 billion US dollars

XTO Energy, based in Texas, is an on-shore natural gas producer.

US oil giant Exxon Mobil is buying natural gas producer XTO Energy in a deal worth 41 billion US dollars. XTO Energy, based in Texas, is an on-shore natural gas producer. The deal includes 10 billion of debt from XTO.

Exxon chairman Rex Tillerson said the combined resources should benefit “consumers both here in the United States and around the world”.

The transaction is still subject to approval from XTO shareholders as well as regulators.

Mr Tillerson also said that the agreement was good news for the US economy and energy security, as it would lead to job creation and investment in the production of clean-burning natural gas resources.

XTO chairman Bob Simpson said: “As the world's leading energy company, Exxon Mobil will... open new opportunities for the development of natural gas and oil resources on a global basis.”

The deal is expected to be completed in the second half of 2010.

“Exxon is making a bold statement about getting into the exploration and production business, but it's hard to tell if this will start a wave of acquisitions,” said analyst Tom Schrader from Stifel Nicolaus Capital Marke.