XTO Energy (XTO)

[frenchee]

Play #1: Undervalued Natural Gas Stocks

To play natural gas, I favor producers and drillers in the U.S. One example would be XTO Energy (XTO). It is a natural gas producer with properties in Texas, Oklahoma, Kansas, New Mexico, Colorado, Arkansas, Wyoming, Louisiana and Alaska.

The company has proved reserves of 6.9 trillion cubic feet of natural gas, 214.4 million barrels of oil, and 53 million barrels of natural gas liquids.

And I consider it cheap. It trades at around 15 times trailing earnings, a discount to the peer group average of 22.5.

Source: Sean Brodrick, 13 Feb 08