XTO Energy

XTO Energy is an American oil and natural-gas company headquartered in Spring, Texas, and operating as a subsidiary of ExxonMobil. Its principal activities span the development, production, processing, and transportation of hydrocarbons, with a particular emphasis on natural gas and unconventional resources. The company has operated across major U.S. producing regions and has also held interests in Western Canada. Its asset base has included oil and gas properties in Arkansas, Colorado, Kansas, Louisiana, Montana, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, West Virginia, Wyoming, and Western Canada. The business began in 1986 as Cross Timbers Oil Company. Founders Bob R. Simpson, Steve Palko, and Jon Brumley established the company after raising approximately $35 million with assistance from Robert Rubin, then a former Goldman Sachs co-chairman. Cross Timbers initially concentrated on acquiring and developing long-lived oil and gas production properties. The company became publicly traded in 1993, providing capital for further property acquisitions and development. A major strategic shift occurred after Bob Simpson became chairman and chief executive officer in 1996. The company moved away from an approximately balanced oil-and-gas production portfolio and placed greater emphasis on natural gas. In June 2001, it adopted the name XTO Energy, using the former stock-market symbol XTO and signaling the company's revised focus. Its growth model combined acquisitions with the development of existing properties, and the company was recognized in 2002 on Fortune's list of the 100 fastest-growing companies. XTO became especially associated with unconventional gas development, including shale-gas projects that use horizontal drilling and hydraulic fracturing. These techniques allowed the company to develop resources that were more difficult to access using conventional vertical wells. The company's activities later expanded across the Barnett, Marcellus, Utica, Bakken, Permian, and other North American resource plays, although its exact asset mix has changed through transactions and portfolio management. On December 14, 2009, ExxonMobil announced an agreement to acquire XTO through a stock-based merger. The transaction was valued at approximately $36 billion, including the assumption of about $11 billion in XTO debt, and closed in June 2010. Following the acquisition, XTO continued to operate as the ExxonMobil organization principally associated with North American unconventional oil and gas development. ExxonMobil's purchase substantially increased its U.S. natural-gas production and made it the largest U.S. natural-gas producer by the measure described in contemporary reporting. After the acquisition, XTO-managed activities expanded through additional purchases, acreage exchanges, farm-ins, and development agreements. In 2011, ExxonMobil acquired Phillips Resources and TWP in Pennsylvania, adding approximately 317,000 Marcellus Shale acres to the portfolio managed by XTO. The same year, ExxonMobil used XTO's unconventional-resource expertise in a strategic arrangement with Rosneft involving Arctic oil and gas opportunities. In 2012, an exchange with Denbury Onshore added acreage in the Bakken region of North Dakota and Montana. XTO also deepened its Appalachian presence and participated in transactions involving the Utica Shale in Ohio. By the middle of the 2010s, XTO's resource portfolio was described as having grown substantially since the ExxonMobil acquisition. The company also operated a significant drilling program in the Permian Basin, including horizontal and vertical rigs across a large net acreage position. Its role within ExxonMobil has therefore been both operational and organizational: XTO has served as a specialist platform for North American unconventional development while contributing technical and operating capabilities to the broader parent company's upstream portfolio. XTO has also…

XTO Energy was established in 1986 under the name Cross Timbers Oil Company by Bob R. Simpson, Steve Palko, and Jon Brumley. The founders raised approximately $35 million with assistance from Robert Rubin and initially pursued mature, long-lived oil and gas properties that could provide continuing production. Cross Timbers went public in 1993, creating a larger financing base for acquisitions and field development. Bob Simpson became chairman and chief executive officer in 1996. Under his leadership, the company changed its portfolio emphasis from a relatively even balance between oil and natural gas toward a stronger natural-gas orientation. In June 2001, Cross Timbers adopted the name XTO Energy Inc.; XTO had been the company's stock symbol, and the new name reflected the company's increasing concentration on gas. The company continued to grow through a combination of property acquisitions, drilling, and development. In 2002, it appeared on Fortune's list of the 100 fastest-growing companies. XTO's technical and commercial identity became closely connected with unconventional oil and gas. The company developed shale and other difficult-to-produce resources using horizontal drilling and hydraulic fracturing, methods that increase contact with the productive formation and can make extensive shale deposits commercially viable. Its North American portfolio came to include operations or interests in numerous U.S. states and Western Canada, including positions in the Barnett, Marcellus, Utica, Bakken, and Permian regions. On December 14, 2009, ExxonMobil announced that it would acquire XTO through a merger. The reported value was approximately $36 billion, consisting of ExxonMobil shares and the assumption of roughly $11 billion of XTO debt. The transaction was completed in June 2010. XTO thereafter operated as an ExxonMobil subsidiary and became the principal organizational home for much of ExxonMobil's North American unconventional development expertise. The acquisition increased ExxonMobil's U.S. natural-gas production to a level described at the time as the largest in the country. The post-acquisition period brought further portfolio expansion and restructuring. In 2011, ExxonMobil acquired Pennsylvania natural-gas companies Phillips Resources and TWP, which were managed by XTO and added about 317,000 Marcellus acres. ExxonMobil also entered a strategic arrangement with Rosneft involving Russian Arctic opportunities, drawing on capabilities associated with XTO. In 2012, an agreement with Denbury Onshore exchanged cash and Wyoming and Texas operating interests for approximately 196,000 Bakken acres in North Dakota and Montana. XTO expanded Appalachian production in 2013 and later participated in an arrangement that allowed American Energy–Utica to acquire an interest in 30,000 Utica acres in Ohio. In 2015, ExxonMobil signed agreements for XTO to drill on 48,000 acres in the core of the Midland Basin; XTO was then described as operating multiple horizontal and vertical rigs across approximately 1.5 million net acres in the Permian Basin. The company has maintained a community and educational presence alongside its operating activities. Its programs have included petroleum-technology support for Navarro College, Butler County Community College, and Westmoreland County Community College; housing work with Habitat for Humanity; wildlife-impact research at Colorado State University; disaster-relief support for the American Red Cross; housing assistance in North Dakota; and donations of historic Navajo blankets to a museum in New Mexico. XTO's history also includes regulatory and environmental controversies. In 2013, it agreed to an EPA fine related to a Pennsylvania water spill, while the Pennsylvania attorney general brought criminal charges associated with the event. The company also contested a federal civil penalty concerning information for a Kansas lease. In Texas, a 2015 academic study linked XTO wastewater-disposal wells with earthquakes near Azle, but the Texas Railroad Commission ultimately found insufficient evidence that the wells caused the seismic activity. XTO remains an ExxonMobil subsidiary focused on North American oil and natural-gas operations.

• 2015

  Permian Basin drilling agreements

  [1]XTO Energyen.wikipedia.org

  ExxonMobil signs agreements for XTO to drill on 48,000 acres in the Midland Basin.

• 2012

  Bakken acreage exchange

  [1]XTO Energyen.wikipedia.org

  An agreement with Denbury Onshore adds approximately 196,000 acres in the Bakken Shale.

• 2011

  Marcellus portfolio expands

  [1]XTO Energyen.wikipedia.org

  The acquisition of Phillips Resources and TWP adds approximately 317,000 Marcellus Shale acres managed by XTO.

• 2010

  Acquisition closes

  [1]XTO Energyen.wikipedia.org

  XTO becomes an ExxonMobil subsidiary.

• 2009

  ExxonMobil announces acquisition

  [1]XTO Energyen.wikipedia.org

  ExxonMobil agrees to acquire XTO in a transaction reported at approximately $36 billion including assumed debt.

• 2002

  Recognized among Fortune's fastest-growing companies

  [1]XTO Energyen.wikipedia.org

  XTO is ranked fifth on Fortune's list of the 100 fastest-growing companies.

• 2001

  Cross Timbers adopts the XTO Energy name

  [1]XTO Energyen.wikipedia.org

  The company changes its name to XTO Energy Inc., using its stock symbol and reflecting its natural-gas strategy.

• 1996

  Bob Simpson becomes chairman and CEO

  [1]XTO Energyen.wikipedia.org

  Simpson assumes leadership and steers the portfolio toward a greater emphasis on natural gas.

• 1993

  Company goes public

  [1]XTO Energyen.wikipedia.org

  Cross Timbers Oil Company becomes a publicly traded company.

• 1986

  Cross Timbers Oil Company is founded

  [1]XTO Energyen.wikipedia.org

  Bob R. Simpson, Steve Palko, and Jon Brumley establish the company to acquire and develop long-lived oil and gas properties.

A North American upstream operator positioned around large-scale unconventional oil and natural-gas development, with particular expertise in shale resources and a strategic role inside ExxonMobil.

• Upstream commodity

  Natural gas

  Natural gas is XTO Energy's principal historical focus. The company shifted toward gas after the mid-1990s and became associated with the development of unconventional shale-gas resources using horizontal drilling and hydraulic fracturing. Production has come from multiple North American basins, including Appalachian, Permian, and other U.S. plays.

• Upstream commodity

  Crude oil

  XTO develops and produces crude oil alongside natural gas. Its oil interests have included positions in the Bakken, Permian, and other North American producing regions, with activities covering acreage development, drilling, production, and associated field operations.

• Exploration and production capability

  Unconventional resource development

  Rather than a consumer product, this is XTO's core operating offering: the development of shale and other unconventional oil and gas resources through horizontal wells, hydraulic fracturing, acreage management, and integrated field operations. The capability has been used across major U.S. resource plays.

• 2015

  Dispute over Azle, Texas earthquakes

  An SMU study alleged that two XTO-operated wastewater-disposal wells were connected to a series of 2013 earthquakes near Azle. The Texas Railroad Commission later found insufficient evidence that the wells caused the seismic activity and allowed the permits to continue.

  Source

• 2013

  Pennsylvania water-spill enforcement

  XTO agreed to pay a $100,000 EPA fine concerning a November 2010 water spill at a Pennsylvania water-recycling operation. The Pennsylvania attorney general subsequently filed criminal charges related to the incident.

  Source

• 2013

  Federal lease-reporting penalty

  The Office of Natural Resources Revenue issued a $648,000 civil penalty over the provision of data relating to a federal lease. XTO said it had supplied the required records and requested a hearing.

  Source

Read more

• 2015North Dakota Housing Incentive Fund contribution

  North Dakota, United States

  XTO contributed $5 million to North Dakota's Housing Incentive Fund to support low-cost apartments for teachers and emergency personnel.

  Outcome. The contribution was described as the fund's largest since its establishment in 2011.

  Source
• 2014Westmoreland County Community College education grants

  Pennsylvania, United States

  XTO provided grants totaling $25,000 to support students in a petroleum industrial processing program with tuition, travel, and equipment assistance.

  Outcome. The grants were directed toward student costs and program equipment.

  Source
• 2013Petroleum technology and disaster-relief giving

  Pennsylvania · Colorado · United States

  XTO donated $100,000 to Butler County Community College for a petroleum-technology training center and $200,000 to the American Red Cross for Colorado disaster protection and recovery.

  Outcome. The gifts supported technical education and disaster-response activities; no further outcome is specified in the reference.

  Source
• 2010Colorado State University wildlife research grant

  Colorado, United States

  XTO and ExxonMobil provided a $5 million grant to Colorado State University to study the effects of oil and gas drilling on wildlife.

  Outcome. The grant supported 20 research projects.

  Source
• 2009Habitat for Humanity housing partnership

  Fort Worth, Texas, United States

  XTO partnered with Habitat for Humanity on home construction in Fort Worth.

  Outcome. The partnership supported local homebuilding; the reference does not quantify the number of homes.

  Source
• 2008Navarro College petroleum-technology support

  United States

  XTO began supporting Navarro College's petroleum technology certificate program as part of its workforce and technical-education outreach.

  Outcome. The program received company support; the available reference does not specify a final enrollment or employment outcome.

  Source

• 2015

  Expand Midland Basin drillingStrategy

  Background

  ExxonMobil continued to develop its Permian Basin position through XTO's North American unconventional operating capabilities.

  Action taken

  Exxon Mobil Corporation signed two agreements covering drilling on 48,000 acres in the core of the Midland Basin, with XTO designated as operator.

  Aftermath

  XTO was described as operating 11 horizontal and four vertical rigs across approximately 1.5 million net acres in the Permian Basin.

  Source

• 2014

  Allow Utica Shale participationStrategy

  Background

  XTO held acreage in Ohio's Utica Shale while other operators sought entry into the developing play.

  Action taken

  XTO agreed to allow American Energy–Utica LLC to acquire an interest in 30,000 acres in Harrison, Jefferson, and Belmont counties.

  Aftermath

  The arrangement brought a partner into part of XTO's Utica position; the reference does not specify subsequent production results.

  Source

• 2012

  Exchange for Bakken acreageStrategy

  Background

  ExxonMobil and XTO sought to strengthen their oil and gas position in the Bakken Shale.

  Action taken

  They agreed to acquire approximately 196,000 Bakken acres from Denbury Onshore in exchange for cash and operating interests in Wyoming and Texas fields.

  Aftermath

  The transaction broadened the North Dakota and Montana portfolio managed within the ExxonMobil-XTO organization.

  Cash component. $1.6 billion (September 2012)

  Source

• 2011

  Acquire Pennsylvania gas companiesM&A

  Background

  ExxonMobil wanted to expand its Marcellus Shale position and place the acquired operations under XTO management.

  Action taken

  ExxonMobil acquired Phillips Resources and TWP, adding approximately 317,000 Marcellus acres.

  Aftermath

  The acquired companies were managed by XTO and expanded ExxonMobil's Appalachian gas portfolio.

  Acquisition value. $1.69 billion (June 2011)

  Source

• 2009

  ExxonMobil agrees to acquire XTOM&A

  Background

  ExxonMobil sought to expand its U.S. natural-gas and unconventional-resource position as shale development accelerated.

  Action taken

  ExxonMobil agreed to acquire XTO through a stock-based merger valued at approximately $36 billion, including assumed debt.

  Aftermath

  The transaction closed in 2010, and XTO became ExxonMobil's principal North American unconventional-oil-and-gas operating platform.

  Transaction value. Approximately $36 billion including approximately $11 billion of assumed debt (Announced December 14, 2009; completed June 2010)

  Source

• 2001

  Rebrand and intensify natural-gas focusStrategy

  Background

  After shifting its portfolio toward natural gas under Bob Simpson, Cross Timbers sought a name that better reflected its strategic direction.

  Action taken

  The company changed its name to XTO Energy, using its stock symbol as the new corporate identity.

  Aftermath

  The rebrand accompanied continued acquisition-led growth and increasing specialization in natural-gas and unconventional-resource development.

  Source

1. 1XTO Energyen.wikipedia.org