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ExxonMobil's surprise move for XTO

ExxonMobil is prepared to pay a high price to secure XTO Energy's unconventional-gas resources

ExxonMobil tends to act slowly, but decisively, and this week's purchase of XTO Energy will send tremors through the oil and gas world. The move could trigger further consolidation among the leading shale-gas players in the US, or draw in other majors.

Provided the deal is approved, ExxonMobil will spend $41bn for XTO, including $10bn of its debt, representing a 25% premium on XTO's shares on 11 December.

That is exceptional value for shareholders in the unconventional-gas firm and the announcement buoyed the shares of other players in the shale-gas sector: the values of Chesapeake Energy, Petrohawk and Devon Energy all jumped in XTO's wake this week. Devon, which has said it will look to rationalise some of its own portfolio, could be a juicy morsel for another ...Click here to continue reading ExxonMobil's surprise move for XTO