XTO - XTO Energy, Inc. (NYSE Stock)

[BadThad]

Another energy play, down about 5% over the last 5 days, it's a good buy right now IMO. I think with gov pressure on changing laws, their business is going to pick up over the next few years. Another bonus, they pay a dividend so get paid to wait.

XTO Energy Inc., along with its subsidiaries, is engaged in the acquisition, development, exploitation and exploration of producing oil and gas properties, and in the production, processing, marketing and transportation of oil and natural gas. Its estimated proved reserves at December 31, 2007, were 9.44 trillion cubic feet (Tcf) of natural gas, 67 million barrels (Bbls) of natural gas liquids and 241 million Bbls of oil. On an energy equivalent basis, it’s proved reserves were 11.29 trillion cubic feet equivalent (Tcfe) at December 31, 2007. On an thousand cubic feet of natural gas equivalent (Mcfe) basis, 66% of proved reserves were proved developed reserves at December 31, 2007. During the year ended December 31, 2007, its average daily production was 1.46 Billion cubic feet (Bcf) of gas, 13,545 Bbls of natural gas liquids and 47,047 Bbls of oil. As of December 31, 2007, the Company owned interest in 25,163 gross (13,403.8 net) producing wells.

XTO - XTO Energy Inc. - Google Finance

Current PPS: $68.47

[BadThad]

Dropped this week, very attractive buy now at $63.81 IMO.

[BadThad]

Huge news for this stock!

NEW YORK/HOUSTON (Reuters) - Exxon Mobil Corp <XOM.N> will buy XTO Energy Inc <XTO.N> in an all-stock deal valued at about $30 billion (18.4 billion pounds), in a move that thrusts the U.S. energy giant to the forefront of North America's fast-growing natural gas industry.

With the buy, Exxon, the largest publicly traded energy company, gains a major foothold in the newest energy discoveries as it bets on natural gas expanding its share of the world's largest energy market.

"This deal provides Exxon with some domestic momentum it didn't have," John Olson, a fund manager at Houston Energy Partners, said. "They are getting a huge acreage spread, with lots of shale gas plays."

The bid, announced on Monday, spurred expectation of a wave of consolidation in the energy sector as cash-rich companies such as Exxon move to snap up smaller players with attractive assets.

"There will be more of these deals, and it will make the industry more resilient to volatility in natural gas prices," said Fadel Gheit, an analyst at Oppenheimer & Co.

The deal would be the fourth-largest acquisition announced in the United States this year and the eighth-largest ever in the energy and power sector.

The American Stock Exchange index of natural gas companies jump nearly 5 percent <.XNG>, Chesapeake Energy Corp <CHK.N> jumped 6 percent to $24.46, while Devon Energy Corp <DVN.N> rose 5.2 percent to $67.15 in morning trading on the new York Stock Exchange.

The deal is valued at $41 billion, including about $10 billion in XTO debt, and is based on the December 11 closing share prices in the two companies.

Exxon will issue 0.7098 common share for each share of XTO, representing a premium of about 25 percent over XTO's closing price on Friday.

XTO, based in Fort Worth, Texas, is one of the leading developers of unconventional resources including shale oil and gas or gas trapped in sands with low permeability that require advanced drilling techniques to recover.

These resources have emerged as a potentially huge new resource play in North America, and their development has so far been dominated by independent U.S. exploration and production companies. But now oil majors like Exxon are starting to look for reserves around the world.

"Natural gas is expected to be the fastest growing of the major energy sources; it's going to grow at a substantially faster rate than oil or coal," Rex Tillerson, Exxon's chief executive officer, said on a call with reporters.

XTO's resource base is the equivalent of 45 trillion cubic feet of gas and includes shale gas, tight gas, coal bed methane and shale oil and is intended to complement Exxon Mobil's holdings in the United States, Canada, Germany, Poland, Hungary and Argentina, the companies said.

"We're going to be able to bring their expertise to bear on many of these new plays that we've acquired," Tillerson said.

U.S. natural gas prices have been under pressure as inventories of the fuel rose to record high levels, but prices have begun to firm in recent weeks as winter temperatures tap into those stockpiles.

Exxon, like other major oil companies, has struggled to increase its oil and gas reserves in recent years as state-owned energy companies held fast to the new energy discoveries.

Tillerson said the purchase would increase the company's resource base about 10 percent.

He added that the deal did not affect Exxon's plan to invest in Ghana. Exxon has agreed to buy a stake in the giant offshore Jubilee oil field, among the largest oil finds in Africa.

Exxon's shares fell almost 4 percent to $69.93, while XTO shares jumped 16 percent to $47.96 on the New York Stock Exchange.

JPMorgan <JPM.N> advised Exxon Mobil and Barclays Capital Inc <BARC.L> , and Jefferies & Company Inc advised XTO.