Exxon Mobil Corp. announced Monday it struck a $41 billion, all-stock deal to buy Houston-based XTO Energy Inc., placing a big bet on the future of the domestic natural gas market.
The acquisition, Exxon Mobil's biggest in a decade, sparked widespread investor speculation that the energy sector could be poised for a new round of consolidation as its biggest players vie for independent producers pinched by low gas prices. Read commentary about Exxon Mobil pouncing on gas.
The transaction value includes $10 billion of existing XTO debt and is based on Friday's closing share prices of Exxon Mobil XOM, +0.83% and XTO XTO, +0.44%
Exxon Mobil has agreed to issue 0.7098 of a share of common stock for each common share of XTO. The deal represents a 25% premium to XTO stockholders.
Shares of Exxon Mobil, part of the Dow Jones Industrial Average, fell 4.3% to close at $69.69, while XTO Energy jumped 15% to $47.86.
What was the total purchase price or enterprise value of the XTO acquisition by Exxon?