XTO Energy Acquires Hunt Petroleum

Texas-based natural gas producer XTO Energy has entered into a definitive merger agreement with privately-held Hunt Petroleum and other associated entities for $4.186 billion.

Consideration in the transaction includes $2.6 billion in cash and 23.5 million shares of XTO common stock valued at approximately $1.6 billion, or $67.50 per share. XTO Energy’s internal engineers estimate proved reserves on the properties to be 1.052 trillion cubic feet of natural gas equivalent, of which 62% are proved developed.

Daily production of 197 million cubic feet of natural gas, 8,500 barrels of oil and 2,300 barrels of natural gas liquids will be added to XTO’s production base upon closing of the transaction.

The acquired properties are primarily concentrated in XTO’s eastern region including east Texas, central and northern Louisiana, where 70% of the reserves are located. Another 28% of the reserves, both onshore and offshore, are along the Gulf Coast of Texas, Louisiana, Mississippi and Alabama.

Non-operating interests, reflecting more than 300,000 net acres of potential in the North Sea and the balance of proved reserves, will also be conveyed in the deal. The company will also gain an additional 15,000 net acres of leasehold in the Bakken Shale region of North Dakota.

Bob Simpson, chairman and CEO, said: “With the quality of these assets and the strong energy prices, this transaction reflects a defining moment in building our company’s future and creating value for our shareholders.”