XTO Energy
| Company type | Subsidiary |
|---|---|
| Industry | Oil and natural gas |
| Founded | 1986 |
| Founder | Bob R. Simpson, Steve Palko, Jon Brumley |
| Headquarters | Spring, Texas , United States |
Area served | North America |
Key people | Bob R. Simpson (Chairman and CEO as of 1996) |
| Products | Oil, natural gas (including shale gas) |
| Parent | ExxonMobil |
XTO Energy Inc. is a U.S.-based energy firm functioning as a subsidiary of ExxonMobil, with its primary operations centered in North America. Headquartered in Spring, Texas, the company was acquired by ExxonMobil in 2010 and concentrates on the exploration, extraction, processing, and transportation of oil and natural gas. It is particularly known for its development of shale gas resources using unconventional techniques such as hydraulic fracturing and horizontal drilling.
The acquisition of XTO by ExxonMobil positioned the parent company as the leading natural gas producer in the United States. Since this transaction, XTO Energy has expanded its asset base threefold through numerous acquisitions. The company holds stakes in approximately 40,000 active oil and natural gas sites across North America, including operations in Arkansas, Colorado, Kansas, Louisiana, Montana, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, West Virginia, Wyoming, and Western Canada.
Founding and early development
Established in 1986 under the name Cross Timbers Oil Company by Bob R. Simpson, Steve Palko, and Jon Brumley, the firm secured $35 million in funding from Robert Rubin, former co-chairman of Goldman Sachs. Initially concentrating on acquiring and enhancing long-term oil and gas production assets, the company went public in 1993.
Bob R. Simpson assumed the roles of chairman and CEO in 1996. Under his leadership, the company pivoted its focus toward natural gas rather than oil. Reflecting this strategic shift, it was renamed XTO Energy Inc. in June 2001; "XTO" also served as its stock ticker symbol. The company continued to grow through acquisitions and development of oil and natural gas properties. In 2002, it was ranked fifth on Fortune's list of "100 Fastest Growing Companies."
Acquisition by ExxonMobil
On December 14, 2009, ExxonMobil announced plans to acquire XTO Energy Inc. in a merger valued at $36 billion. The transaction included issuing 416 million shares and assuming $11 billion in debt. This acquisition increased ExxonMobil’s U.S. natural gas output to 3.68 billion cubic feet per day, establishing it as the nation’s largest producer. It marked ExxonMobil's most significant acquisition since its formation in 1999 and was completed by June 2010.
Developments from 2011 onward
In June 2011, ExxonMobil purchased Phillips Resources Inc. and TWP Inc., both operating in Pennsylvania under XTO Energy’s management, for $1.69 billion. This expanded their holdings by approximately 317,000 acres within the Marcellus Shale region. Later that August, ExxonMobil capitalized on XTO’s expertise through a $3.2 billion agreement with Russian oil giant Rosneft to explore Arctic oil and gas prospects.
In September 2012, ExxonMobil and XTO finalized a land swap with Denbury Onshore LLC that added 196,000 acres in North Dakota and Montana’s Bakken Shale to their portfolio. Denbury received $1.6 billion in cash along with interests in Wyoming and Texas fields.
Throughout 2013, XTO Energy increased its production output in the Appalachian basin by nearly 30%. In February 2014, it allowed American Energy–Utica LLC to acquire a stake in 30,000 acres of its Utica Shale properties located in Ohio.
By 2014, XTO Energy had tripled its resource holdings since becoming part of ExxonMobil. In August 2015, ExxonMobil entered into agreements to drill on 48,000 acres within the Midland Basin managed by XTO Energy; the subsidiary oversees drilling operations across roughly 1.5 million net acres within Texas’ Permian Basin.
Grants to Petroleum Educational Programs
XTO Energy initiated support for the petroleum technology certificate program at Navarro College in 2008. Beginning in 2009, the company collaborated with Habitat for Humanity to construct residences in Fort Worth. In 2010, XTO partnered with ExxonMobil to provide $5 million to Colorado State University, funding 20 research projects focused on the effects of oil and gas drilling on wildlife.
In April 2013, XTO contributed $100,000 to Butler County Community College to create a training center dedicated to petroleum technology. That same year, the company also donated $200,000 to the American Red Cross to assist with disaster relief efforts in Colorado.
By April 2014, XTO awarded $25,000 in grants to Westmoreland County Community College in Pittsburgh, aimed at supporting students enrolled in the Petroleum Industrial Processing Operations Technology program with expenses such as tuition, travel, and equipment. Furthermore, XTO gifted 21 historic Navajo blankets valued at $175,000 to the Farmington Museum located in New Mexico.
In 2015, XTO made a $5 million contribution to the North Dakota Housing Incentive Fund, facilitating the development of affordable housing units for educators and emergency responders. This donation represented the largest single gift since the fund’s establishment in 2011.
Regulatory Matters
In July 2013, XTO consented to pay a $100,000 penalty imposed by the U.S. Environmental Protection Agency due to a water spill that occurred at a Pennsylvania recycling facility in November 2010. Subsequently, in September 2013, criminal charges were filed against XTO by the Pennsylvania Attorney General concerning this event.
The federal Office of Natural Resources Revenue levied a civil penalty of $648,000 against XTO in October 2013 for allegedly failing to submit required information related to a federal lease in Kansas. XTO maintained that it had provided the necessary documentation but found the submission process burdensome and requested a formal hearing.
A study conducted by Southern Methodist University in April 2015 associated two wastewater disposal wells operated by XTO with seismic activity near Azle, Texas, during 2013. However, preliminary findings released by the Texas Railroad Commission in August 2015 suggested these wells were unlikely contributors. In November 2015, the Commission unanimously concluded there was insufficient proof linking XTO's wells to the earthquakes and allowed the company to retain its permits.