Armin's Stock Selection

XTO... strenght and

weakness...
The Oil, Gas & Consumable Fuels industry is cyclical in nature and is one of the most important globally what suggest a risk to the investors in such companies. XTO downside risks include declining net income and fluctuating energy prices, too. Close to two-thirds of the world's energy needs are satisfied by hydrocarbons (crude oil and natural gas), I believe that a tight supply conditions are going to persist well in the future and oil prices will be elevated and are expected to remain so as global economic growth progresses.

XTO is a large independent exploration and production company focused on unconventional natural gas resources It also has proven reserves of oil, with its steady growth, ever increasing reserves, and superb management. For example, the average reserve-to-production index of proved reserves is 16.3 years. In general, these properties have extensive production histories and production enhancement opportunities. The company has limited exploration costs to wisely acquire property on which there are proven reserves. XTO does this better that it's competitors. XTO relies on its experienced team of geologists, seismologists and drillers. It translates to a strong growth, so XTO Energy's Q2 FY07 revenue rose 24.8% year-over-year to $1.33 billion, from $1.07 billion. The increase resulted from a rise in revenue from its Gas and Natural Gas Liquids and Oil & Condensate segment. Revenue from the Gas and Natural Gas Liquids segments soared 29.3% to $1.02 billion. Oil and Condensate revenue rose 9.8% to $281.00 million. Gas Gathering, Processing and Marketing revenue spiked 36.4% to $30.00 million.
North America has only about 3% of the world's natural gas supply and natural gas cannot be easily imported. There have been no new natural gas facilities to come online for a number of years. It is a reasonable conclusion that supply and demand will cause the price of natural gas to gradually rise. This is exactly what has happened. XTO has generally been able to increase its reserves by 20-25% year over year.
In addition, a solid guidance and acquisition of both producing and unproved properties from Dominion Resources for $2.50 billion suggest its 2007 production growth target to 17.0% These properties are located in the Rocky Mountain Region, the San Juan Basin and South Texas.
strenght...
An easy understandable business XTO is showing up here, isn't it!..

That's why XTO has been selected to take part in my ASTRA quaityx20 portfolio.