Exxon To Have Largest Unconventional Gas Portfolio In Industry -Executive

Exxon Mobil Corp.'s (XOM) purchase of XTO Energy Inc. (XTO) will bring the world's largest oil company about 8 million acres of unconventional hydrocarbon assets, an executive said Monday.

The acreage makes Exxon the holder of the "largest unconventional portfolio in the industry," said David Rosenthal, Exxon's vice president of investor relations.

Over 60% of these assets are outside of the U.S.; about 4 million acres consist of shale gas plays of the type that has greatly expanded natural gas production in North America in recent years.

The all-stock transaction - valued at $41 billion, including the assumption by Exxon of about $10 billion of XTO's debt - isn't likely to have a "material impact in the key financial ratios," said Rosenthal. The company expects them to remain "strong."

The transaction is unlikely to result in an increase in earnings per share, said Rosenthal. Depending on the price of natural gas, which has been low as demand dropped during the recession, it "may be dilutive," he said.

-By Angel Gonzalez, Dow Jones Newswires;713-547-9214;angel.gonzalez@dowjones.com

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