XTO looks less like a takeover candidate on a McDep Ratio basis on current estimates than lower ranked peers. On the other hand, XTO has a superior record and has often outperformed from a higher McDep Ratio ranking. A performance oriented acquirer might readily be attracted to XTO. For example, XTO has an excellent working relationship with buy-recommended ExxonMobil (XOM). The mega cap continues to own valuable North American properties readily susceptible to the exploitation that XTO does so well.
Originally published 05/01/06
Kurt Wulff's McDep Associates offers realtime, independent research services for investors in the energy and utilities sectors. For more information, go to www.mcdep.com or email Mr. Wulff at firstname.lastname@example.org.