Bought at 42.5 February 2006 XTO Energy, based in Fort Worth, Texas, engages in the exploration and production of natural gas and oil. Its gathering and processing operation accounts for less than 5% of total revenue. At the end of 2006, XTO reported proven reserves of 8.5 trillion cubic feet of natural-gas equivalent, with average daily production of about 1,528 million cubic feet. Natural gas makes up more than 80% of XTO's proven reserves. All of XTO's properties are in the United States. Historically, XTO has produced ROICs and operating margins above the peer average. By focusing its list of potential acquisition targets and trimming its exploration budget, XTO has been able to cut operating costs and boost profit margins. High reward for veteran management team with founder Bob Simpson at healm often called the Warren Buffett of energy.