Exxon Mobil Corporation (ticker: XOM, exchange: New York Stock Exchange (.N))
News Release -
ExxonMobil Announces Completion of All-Stock Transaction For XTONew Organization Created to Focus on Global Unconventional Resource
- Jack Williams elected president and Keith Hutton named executive
- To be known as XTO Energy Inc. and maintain head office in Fort
- Nearly all of XTO's 3,300 employees to transition to new company
IRVING, Texas, Jun 25, 2010 (BUSINESS WIRE) --Exxon
Mobil Corporation (NYSE: XOM) announced today it has completed its
agreement with XTO
Energy Inc., creating a new organization to focus on global
development and production of unconventional resources.
Under the agreement, approved by XTO stockholders at a special meeting
Friday, the new organization will continue to be known as XTO Energy
Inc. and maintain its head office location in Fort Worth, Texas.
Jack Williams, a former vice president of ExxonMobil Development
Company, has been elected president of XTO Energy Inc. Keith Hutton,
formerly XTO's chief executive officer, is executive vice president of
the new organization.
"With this agreement, we are combining XTO's skills, capabilities and
asset base with ExxonMobil's advanced research and development and
operational capabilities, global scale and financial capacity," said
Williams. "The new organization will create the opportunity for more
jobs and investment in the development and production of clean-burning
natural gas both here in the United States and around the world."
Nearly all of XTO's 3,300 employees are transitioning to the new
organization, which Hutton said is the result of what has been a key
focus of transition planning since the agreement was announced in
"ExxonMobil worked closely with XTO's management to ensure employees
understand how important they are to the future success of the new
organization," said Hutton. "XTO's employees bring the ability to
enhance ExxonMobil's global operations through the vast experience they
have gained in innovative and efficient resource development in the
Rex W. Tillerson, chairman and chief executive officer of ExxonMobil,
said this conclusion of the agreement is good news for the United States
as it will help produce more of America's own clean-burning natural gas,
which brings with it innovation, technology, investment and jobs.
Outlook indicates that gas will grow more rapidly than any other
major energy source given its availability and relatively low carbon
profile," said Tillerson. "We believe gas is the fuel of choice for
power generation, producing fewer greenhouse gas emissions than other
electrical-generation fuels, such as coal."
The agreement received regulatory clearance from the competition
authorities in March.
Under the agreement, each outstanding common share of XTO has been
converted into the right to receive 0.7098 shares of ExxonMobil common
stock, with cash to be paid in lieu of any fractional shares. More
information on the exchange of XTO shares for ExxonMobil shares will be
mailed to XTO stockholders in the near future.
XTO's resource base is the equivalent of 45 trillion cubic feet of gas
and includes shale gas, tight gas, coal bed methane, shale oil and
conventional oil and gas production. These will complement ExxonMobil's
holdings in the United States, Canada, Germany, Poland, Argentina and
Analyst Conference Call Information
ExxonMobil will conduct an analyst conference call on Thursday, July 8,
2010 at 11 a.m. Eastern Time (10 a.m. Central Time) to discuss the
transaction (URL will be available at www.exxonmobil.com).
The slides to be discussed during the call will be available at www.exxonmobil.com
for viewing and download starting at 10:45 a.m. Eastern Time (9:45 a.m.
Central Time) on July 8, 2010.
Audio Webcast Participation
Listen Only Numbers:
Confirmation Code: 9648931
Replay Telephone Numbers:
888-203-1112 or 719-457-0820
Replay available starting at 5 p.m. Eastern Time (4 p.m. Central Time),
and running through July 15 at Midnight.
the largest publicly traded international oil and gas company, uses
technology and innovation to help meet the world's growing energy needs.
ExxonMobil holds an industry-leading inventory of resources, is the
largest refiner and marketer of petroleum products, and its chemical
company is one of the largest in the world. For more information, visit www.exxonmobil.com.
Cautionary Statement Regarding Forward-Looking Statements
Statements in this release regarding future plans, expectations,
projections, events or conditions are forward-looking statements. Actual
results, including business plans and results, integration benefits and
demand growth, could differ materially as a result of a variety of
factors, including: our ability to achieve the synergies and value
creation contemplated by the merger; our ability to promptly and
effectively integrate XTO's businesses; the diversion of management time
on integration-related issues; our ability to retain key XTO personnel;
changes in long-term oil or gas prices or other market or economic
conditions affecting the oil and gas industry; political or regulatory
developments; unforeseen technical or operating difficulties; political
events or disturbances; reservoir performance; the outcome of commercial
negotiations; wars and acts of terrorism or sabotage; and other factors
discussed under the heading "factors affecting future results" available
through the "investors" section on ExxonMobil's website and in Item 1A
of ExxonMobil's 2009 Form 10-K. No assurances can be given that any of
the events anticipated by the forward-looking statements will transpire
or occur, or if any of them do so, what impact they will have on our
results of operations or financial condition. We assume no duty to
update these statements as of any future date. References to resources
in this release include quantities that are not yet classified as
"proved reserves" under SEC definitions, but that we believe will
ultimately be produced.
SOURCE: Exxon Mobil Corporation