","image":{"@type":"ImageObject","url":"https://g.foolcdn.com/avatar/1624931198/large.ashx","height":"80","width":"80"}},"about":[{"@type":"Corporation","tickerSymbol":"NYSE XOM"},{"@type":"Corporation","tickerSymbol":"NYSE CVX"},{"@type":"Corporation","tickerSymbol":"CHKA.Q"},{"@type":"Corporation","tickerSymbol":"SWN"}],"publisher":{"@type":"Organization","@id":"https://www.fool.com/","name":"The Motley Fool","url":"https://www.fool.com/","logo":{"@type":"ImageObject","url":"https://g.foolcdn.com/misc-assets/logo-tmf-primary-7-magenta-royalpurple.svg","width":"157","height":"43"},"brand":"The Motley Fool","contactPoint":{"@type":"ContactPoint","contactType":"Media Inquiries","email":"[email protected]"},"publishingPrinciples":"https://www.fool.com/about/","sameAs":["https://www.fool.com/about/","https://en.wikipedia.org/wiki/The_Motley_Fool","https://www.wikidata.org/wiki/Q7752442","https://www.linkedin.com/company/the-motley-fool","https://www.facebook.com/themotleyfool/","https://x.com/themotleyfool","https://www.instagram.com/themotleyfoolofficial/","https://www.youtube.com/channel/UCpRQuynBX9Qy9tPrcswpPag","https://www.pinterest.com/themotleyfool/","https://www.tiktok.com/@themotleyfoolofficial","https://www.google.com/search?kgmid=/m/0578mk"]},"description":"Why overpaying in an acquisition can cost you big.","image":{"@type":"ImageObject","height":"630","width":"1200"}}","image":{"@type":"ImageObject","url":"https://g.foolcdn.com/avatar/1624931198/large.ashx","height":"80","width":"80"}},"inLanguage":"en-US"}

ExxonMobil's $40 Billion Mistake

Why overpaying in an acquisition can cost you big.

By Joel South and Taylor Muckerman – Apr 13, 2013 at 9:00AM EST

ExxonMobil (XOM 1.63%) was recently downgraded by Morgan Stanley. But with a company like Exxon that has a long history of a rock-solid balance sheet, excellent reserve replacement, and the ability to return enormous amounts of money to shareholders, what is holding back the world's largest oil company? In this video, Motley Fool energy analysts Joel South and Taylor Muckerman discuss Exxon's 2009 acquisition of XTO Energy, and tell investors how overpaying in an acquisition continues to hurt investors.

Read Next

Apr 9, 2026 •By Reuben Gregg Brewer

The Best Reason to Buy ExxonMobil Right Now Isn't High Oil Prices

Apr 9, 2026 •By Matt DiLallo

War-Driven Production Disruptions Will Hit Big Oil Giants ExxonMobil and Shell in the First Quarter. Are They Still Worth Buying?

Apr 8, 2026 •By Jack Delaney

Better Dividend Stock: ConocoPhillips vs. ExxonMobil

Apr 7, 2026 •By Lou Whiteman

Best Oil Stocks to Buy in 2026 and How to Invest in Them

Apr 7, 2026 •By Leo Sun

Oil, Geopolitics, and ExxonMobil: Here's Where the Stock Could Be in 12 Months

Apr 6, 2026 •By Leo Sun

2 Energy Stocks That Are No-Brainer Buys While Oil Prices Stay Elevated

About the Author

Joel is a University of Washington graduate and covers energy and materials for The Motley Fool. Be sure to follow The Motley Fool's energy and materials Twitter for all your energy and materials coverage. Follow @tmfenergy

XMFTheWhisperer

Stocks Mentioned

ExxonMobil

NYSE: XOM

$152.51

(-1.63%)-$2.53

Chevron

NYSE: CVX

$188.55

(-0.95%)-$1.81

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.