Cases & Deals

Hunt Petroleum acquired by XTO Energy for $4.2 billion

Client(s) Hunt Petroleum Corporation

Jones Day advised Hunt Petroleum Corporation and related entities (Hunt) in connection with a process initiated by Hunt that resulted in an agreement to merge it with an affiliate of XTO Energy, Inc. (XTO) for aggregate consideration of $4.2 billion in cash and XTO common stock. Hunt is primarily engaged in the exploration and production of oil and natural gas in North America and the North Sea. Proved reserves are estimated to be 1.052 Tcfe, of which 62% are proved developed, and daily production averages 197 MMcf of gas, 8500 Bbl of oil, and 2300 Bbl of natural gas liquids.

Jones Day worked with Hunt to effect an internal restructuring designed to both sequester non-core assets and maximize the value of the oil and gas assets. This internal restructuring, designed and implemented during the sale process, allowed Hunt to market itself efficiently for the transaction.

Upon receipt of XTO's bid, Hunt relied on Jones Day to create a structure that achieved maximum tax efficiency and avoided issues arising in connection with portions of the internal restructuring. M&A, antitrust, oil & gas, employee benefits, and tax attorneys in Jones Day's New York, Dallas, and Washington offices worked together to provide advice that enhanced the value to be received by Hunt stockholders.

In June 2009, Oil and Gas Investor magazine awarded its "Best M&A Deal" award for 2008 to the Hunt/XTO transaction. The magazine presented the award to XTO President Vaughn Vennerberg in a ceremony at the Intercontinental Hotel in Houston. The Oil and Gas Investor Excellence Awards have been handed out annually since 2003 and honor commitment to quality and innovation in the oil and gas industry.