Exxon Mobil to buy XTO Energy for $31 billion

In this file picture, an Iraqi worker operates valves at the Nahran Omar oil refinery near the city of Basra 550 kilometers (340 miles) southeast of Baghdad. A consortium grouping U.S. and European oil giants Exxon Mobil Corp. and Royal Dutch Shell PLC won the right to develop one of Iraq's most prized oil fields, Iraq's Oil Ministry spokesman said. Photo: AP

IRVING, Texas: Exxon Mobil says it will acquire XTO Energy in an all—stock transaction valued at $31 billion.

Exxon has moved quickly to pick up valuable natural gas fields and now it is snapping up XTO, which claims about 45 trillion cubic feet (1.27 trillion cubic meters) of natural gas.

The world’s largest publicly traded oil company will issue 0.7098 common shares for each common share of XTO, representing a 25 percent premium to XTO stockholders. Exxon will also assume $10 billion in XTO debt.