Exxon to buy XTO in huge energy deal

Exxon Mobil said Monday that it had agreed to buy XTO Energy, a natural gas producer, for $31 billion in stock and the assumption of $10 billion in debt, the largest energy merger in years. Under the terms of the deal, Exxon will pay XTO shareholders 0.7098 common shares for each of their XTO shares, or about $51.69 based on Friday's closing prices. The deal, which is taking advantage of low natural gas prices, represents a 25 percent premium for XTO's shares. The deal would give Exxon the equivalent of about 45 trillion cubic feet of natural gas throughout the United States, in a bet that demand will continue to rise. XTO, founded in 1986, is the nation's largest domestic producer of natural gas. "XTO is a leading U.S. unconventional natural gas producer, with an outstanding resource base, strong technical expertise and highly skilled employees," Rex Tillerson, Exxon's chief executive, said in a statement.