Wednesday, February 27, 2008

Why XTO ?

More than just because Cramer said so...

A true growth enterprise

Targeting 20% production growth in 2008

A top-ranking owner and producer of domestic natural gas

Fourth largest owner of domestic gas reserves among the independents
Currently producing more than 1.671 Bcfe/d of gas per day
'Top-10' natural gas producer in the U.S.

Highly efficient franchise

One of the lowest 'finding & development' costs in the sector
Five-year all-in reserve replacement of 518%
Strong operating margins yielding strong full-cycle economics

Tremendous upsides

Have identified 7.3 Tcfe of low-risk resource potential to drill
About 5 years of low-risk growth inventory 'in hand'

Low-risk, high-return strategy

Acquire the best 'legacy' properties
Apply rigorous engineering and geologic work, along with pioneering
innovation
Prove-up and develop more reserves and production
Seek project economic returns better than 30%

Financial performance

FirstCall consensus projection of more than $3.8 billion in cash flow
for 2008
Significant oil & gas hedges through 2008

Stock price performance

Appreciation of 5744% from 1993 IPO through January 2008
The IPO stock price of $13 has increased to more than $759 through
January 2008
(when not adjusted for stock splits)

Proven management

Company founder actively manages company
Senior executives together 25+ years
Management owns more than 6% of XTO stock

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