XTO Energy to acquire property from Headington Oiladmin
XTO Energy says it is acquiring oil producing properties and undeveloped land from Headington Oil for $1.85 billion in cash and stock.
XTO Energy Inc. said Wednesday it will buy 352,000 acres of Bakken Shale land in Montana and North Dakota from privately held Headington Oil Co. XTO estimates there are 68 million barrels of oil equivalent in proved reserves on the land. The acquisition will increase XTO’s production by 10,000 barrels of oil equivalent per day.
Fort Worth, Texas-based XTO will spend $1.06 billion in cash, with the rest coming in the form of common stock valued at $790 million, or $67.35 per share.
The share price is a 7 percent premium over XTO Energy’s Tuesday closing price of $62.75.
The deal is expected to close by July 15.