Wednesday, June 8, 2011

Exxon Still Buying Gas

Today, Exxon announced that it is buying two related privately-held companies operating in the Marcellus Shale.  Exxon in buying Phillips Resources and TWP Inc. for $1.69 billion, adding about 317,000 Marcellus acres to its portfolio.

Exxon has already purchased XTO Energy (a much celebrated and criticized deal) and Ellora Energy.  With the Phillips deal, Exxon continues to show that the company is taking a long term view towards natural gas, specifically gas found in shale. It is yet another bullish sign for the natural gas industry, even in these still dark days for the commodity.

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