FORT WORTH -- Two years after Chairman Bob Simpson sold Fort Worth-based XTO Energy, one of the nation's leading independent oil and gas producers, to Exxon Mobil Corp. for $31 billion, his new company and XTO have entered into a joint venture.
In a memo to employees Wednesday, XTO President Jack Williams said the venture is being called Cross Timbers Energy.The name is a nod to XTO's beginnings. Simpson co-founded Cross Timbers Oil in 1986 with Jon Brumley and Steve Palko. The name was changed to XTO Energy in 2001.Simpson and other former XTO executives -- Keith Hutton, Vaughn Vennerberg and Tim Petrus -- are principals in MorningStar Partners, an oil and gas company. Some of the executives stayed with XTO for a year as consultants.Neither MorningStar nor XTO Energy representatives responded to requests for comment Wednesday.Under the joint venture, XTO will contribute "a limited number of conventional oil and gas assets" and MorningStar will contribute unspecified cash as well as technical and operating services. Each side holds a 50 percent interest, Williams' memo says.Williams said the properties that XTO is contributing are not currently operated by Exxon and make up about 3 percent of the company's total production.MorningStar executives "have a unique historic knowledge of these properties," Williams said, "and we are optimistic the additional time and attention they can lend to these assets will yield additional value for both venture participants."MorningStar bought the former Star-Telegram building at Seventh and Taylor streets in 2011 and is making extensive renovations. MorningStar has said it will be the sole occupant of the 184,000-square-foot building.Sandra Baker, 817-390-7727Twitter: @SandraBakerFWST