Jim Cramer on tonight’s MAD MONEY has an oil stock pick since the energy companies are not reinvesting in exploration and wildcatting. One oil company that exploits higher oil prices is XTO Energy (XTO-NYSE). He says he went ahead and bought some for his charitable trust yesterday so he’d own the best wildcatter in the US.
It has ensured growth for years now with the purchase of assets from Dominion Resources, Inc. (D-NYSE). It held many oil and gas properties that were sold to XTO and to Loew’s (LTR-NYSE). XTO bought the natural gas reserves for $2.00 per gas unit that can ultimately sell it for $9.00 down the road. XTO sold off shares to help finance this and shares are now at a discount to the pricing because of the weak market. Cramer also thinks it has the best management team in the business.
Jon C. Ogg
June 7, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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