XTO Energy and Devon Energy
Milestone #3
Tom Bolger
David Huckabay
Anthony Johnson
Andy Leach
XTO ENERGY INC.
Company Background
XTO Energy Inc. is a premier domestic natural gas and oil producer engaged in the acquisition, exploitation and development of quality, long-lived gas and oil properties. The Company, whose predecessor companies were established in 1986, completed its initial public offering in May 1993. Its properties and activities are concentrated in Texas, New Mexico, Arkansas, Oklahoma, Kansas, Wyoming, Colorado, Alaska and Louisiana.
Competitive Environment
XTO operates in the lower-cap oil and gas business. They compete directly with larger independent companies like Devon Energy, Anadarko, and Apache. XTO's main focus is acquiring established, long-lived properties, which are low in risk, and apply the best technology possible to maximize production.
Structure
Based on interviews with management, we found that XTO's management style encourages innovation. Employees are encouraged to ask for forgiveness and not permission. We've learned this semester through lecture and readings, that this management technique empowers employees and gives them the autonomy they like and the freedom to create. Employees that work under this type of management style are not faced with the possibility of losing
their jobs if they make a business decision that turns out to have negative consequences. Employees are free to innovate and take pragmatic risks. The company culture at XTO is described as laid back and relaxed. XTO believes that major oil and gas companies are unable to implement this type of cul ...