Exxon Mobil acquired XTO Energy for $41 billion on Monday, the Epoch Times reported. The all-stock purchase resulted in positive gains in all mid and small cap stocks.
“We are pleased that Exxon Mobil and XTO have reached this agreement,” said Rex Tillerson, CEO and chairman of Exxon Mobil in a recent press release.
XTO is known in the market as one of the primary companies for finding unique gases in the U.S. suitable for generating power as well as shale oil. The acquisition has increased trading involved with energy companies and put Exxon at the head of the Wall Street Journal’s “Buying On Weakness” list, which marks what enterprises reduce stock price while increasing capital.
“XTO is a leading U.S. unconventional natural gas producer, with an outstanding resource base, strong technical expertise and highly skilled employees. XTO’s strengths, together with ExxonMobil’s advanced R&D and operational capabilities, global scale and financial capacity, should enable development of additional supplies of unconventional oil and gas resources, benefiting consumers both here in the United States and around the world,” Tillerson said.
With Exxon’s strong presence in the global economic market many stockholders and traders anticipate the deal will help all companies associated with energy production, the Epoch Times reported. With Exxon Mobil boosting its business with natural gases it could help the U.S. increase the output of natural gases, resulting in a reduced dependency on foreign oil.