XTO Energy knows the X's and O's of a successful oil and gas strategy. It buys and develops mostly long-lived producing properties, and also explores unproved reserves. The company's assets are mainly in Arkansas, Kansas, Louisiana, New Mexico, Oklahoma, Texas, and the Rockies; it also has assets in Appalachia and the North Sea. XTO Energy owns stakes in more than 34,600 gross wells and operates gas gathering systems primarily in Arkansas, Kansas, Oklahoma, and Texas. In 2010 the company was acquired by Exxon Mobil in a $41 billion deal. Prior to the purchase XTO Energy reported proved reserves of 12.5 trillion cu. ft. of natural gas, 284 million barrels of oil, and 93 million barrels of natural gas liquids.
The deal, which was Exxon Mobil's largest purchase in decades, boosted that company's holdings in the US natural gas market.
XTO Energy had grown through acquisitions and the development of acquired properties. In 2008 XTO Energy acquired $1 billion worth of oil and gas properties in Colorado, Louisiana, New Mexico, and Texas. That year it acquired Linn Energy's oil and gas properties in the Appalachian Basin for $600 million. It also purchased producing Bakken Shale properties and undeveloped acreage from Headington Oil Co. and other parties for $1.8 billion.
In 2008 the company acquired Hunt Petroleum for $4.2 billion, giving it additional assets in its core US areas. Hunt also holds rights to a section of the North Sea.
XTO acquired natural gas upstream assets in the Arkansas-based Fayetteville shale play in 2010 for $575 million from Petrohawk Energy. In 2011 XTO also bought Petrohawk's midstream assets in the Fayetteville shale for some $75 million.
In 2011 Exxon Mobil acquired Marcellus Shale gas producers Phillips Resources and TWP for $1.7 billion and wrapped their production (15 million cu. ft. of natural gas equivalent per year) into XTO Energy's operations. – less