Exxon, XTO: Unconventional deal for unconventional gas

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Exxon, XTO: Unconventional deal for unconventional gas

posted on Sep 16, 2010 09:15AM

9/9/2010 10:34:00 AM
Exxon, XTO: Unconventional deal for unconventional gas

Rob Robertson
Reporter

Pressure to reduce carbon emissions and the growth in unconventional natural gas reserves were two of the major incentives that led Exxon Mobil Corp. to acquire Fort Worth’s XTO Energy Inc.

That was the message from two leaders involved in the deal between the two companies: Bill Colton, vice president-corporate strategic planning, Exxon Mobil Corp., and Vaughn Vennerberg, former president of XTO Energy Inc., on Sept. 2 as they shared insights on the deal that brought XTO into the Exxon fold and mused about the long-term future of natural gas.

The two men spoke onstage during an open chat at the Oil and Gas Investors 9th Annual A&D Strategies and Opportunities conference at the Sheraton Dallas.

Also...

The $41 billion, all-stock transaction was the biggest energy deal in more than a decade, and provided the most concrete proof to date that the shale gas technologies pioneered in the Barnett Shale were being adopted by mainstream energy firms. The deal, announced in 2009, closed on June 25. The deal with Exxon puts XTO Energy – and Fort Worth – front and center of a strategy that will see the Irving-based energy giant focus on the development of unconventional natural gas assets. Exxon plans to expand XTO’s role, with XTO now a subsidiary of Exxon. The Fort Worth-based subsidiary will focus on global development and production of unconventional resources for the parent company. For instance, Exxon officials said they plan to apply XTO’s technical expertise to its unconventional gas holdings in locations like Poland, Hungary and Argentina. The term unconventional resources applies to a variety of fuel sources, including shale gas, tar sands and other forms of oil and gas that require sophisticated technology and more expensive operations to develop.