Few stocks can match the relatively steady appreciation of this stock over the past 12 months. All profitability ratios over the past five years are better than achieved by the Oil & Gas Operations Industry, and the Energy Sector as a whole. Capital spending has grown by more than double that of its peers, during this period. Investors can use this stock as a text-book case of the dual benefits of immediate and long-term benefits. No wonder that major financial institutions own more than 75% of this company’s stock.
The company uses three dimensional seismic and related technologies to discover oil and gas reserves with extraordinary success. It has been able to operate more than 70% of its exploratory drilling. All its natural assets lie within the United States. It has a distinct focus on natural gas. It is therefore a national asset in terms of clean and reliable energy for the country. This stock protects investors from international dollar fluctuations and from international uncertainties as well.
Prospects for 2008 are bright. The company will commence exploratory work at over 30 new sites. The management has a capital expenditure plan of about $130 million for the year. About a quarter of this budget is to develop reserves that have not been proved as of December 2007. The company is confident that its exploratory work will yield new and productive capacities. The company has also recently invested in an automated system to check invoices from some 8 thousand suppliers against contracted rates. This saving of manual work is expected to improve productivity further.
Let us hear your thoughts below:
