XTO Energy doesn’t actually find new sources of oil and gas. Instead, the Fort Worth company, under CEO Bob Simpson, has thrived by doing what it calls “wildcat exploitation.” It snaps up existing wells and fields in the U.S. where production has already declined to about half the initial rate. The company figures that it can squeeze out years—or decades—worth of oil and gas at lower costs through better management and by drilling new wells in already-producing fields. The strategy has worked. Production has grown 13 years in a row. Since a 1993 IPO at a price of 13, the stock has split seven times, rising to today’s 51.38. In 2006, revenues and net income jumped 30% and 61%, respectively, from 2005. There’s no end in sight. XTO’s proven reserves, concentrated in Texas, New Mexico, Arkansas, and nearby states, are at their highest levels ever, all ready to be tapped.
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|Total Return||Past 12 Months|
|Past 36 Months
|Industry||Oil & Gas Exploration & Production|