A company with some of the greatest growth characteristics Cramer has seen happens to be in the oil and gas sector: XTO Energy . Cramer bought XTO for his charitable trust because of its management, which he called the best of any oil company in the world. What better way to confirm that than by talking to co-founder and CEO Bob Simpson?
Simpson told Cramer XTO manages to hedge itself against natural gas prices, which is why it hasn’t been hurt by nat gas being so low. The company doesn’t have to live by the current price (about $6.50) because it has effectively hedged it out, Cramer said.
XTO is also having its best year ever in terms of acquisitions, Simpson said. Recent acquisitions, including one $2.5 billion deal with Dominion Resources , have the potential to double production for XTO, Simpson said. “We average a double on everything we have done since ’87.”
Cramer is convinced Simpson is the “best executive in the oil patch.” He doesn’t think XTO is done moving up, either.
Jim's charitable trust owns XTO Energy.
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