Friday, July 9, 2010

Exxon (NYSE:XOM) Buying Back $3 Billion Shares

In a nod toward shareholders, Exxon Mobil Corp. (NYSE:XOM) said they're going to buy back $3 billion of its shares in the quarter to shrink the effects it had of diluting shares from their acquisition of XTO Energy.

The giant energy company also said they'll refinance or pay back all the assumed debt from the deal as well.

Outstanding shares in the company rose by 416 million, or about 9 percent from the $25 billion acquisition, said vice president for investor relations, David Rosenthal, on a conference call.

The amount of assumed debt needed to be refinanced or paid off is $11 billion.

This is a natural gas play from a long-term perspective, where Exxon Mobil received with XTO, at minimum, 45 trillion cubic feet of recoverable gas. And just as important, the immediate expertise of those in the company who specialized in the sector.

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