A couple of days ago, XTO energy (XTO) announced that it is acquiring Hunt Petroleum.

Hunt Petroleum is a privately held company, and its absorption into the XTO family comes on the heels of recent equity acquisitions from Linn Energy (LINE) and the privately held Headington Oil. The deal is $4.3 billion in stock and cash. Forbes reports on what the Hunt Petroleum deal is expected to add to the reserves available to XTO:

The company said the deal, which it expects to close on or before Sept. 3, would add 197 million cubic feet of natural gas, 8,500 barrels of oil and 2,300 barrels of natural gas liquids to its production base.

At a time when oil and natural gas prices are heading higher, this looks like a solid move. XTO seems well placed, as the company continues to acquire oil and natural gas producing properties. After all, even with momentary dips in oil prices right now, the overall trend is for oil prices to move higher. With increasing demand from developing nations, as well as a dwindling supply and the problems and costs associated with aging refineries, it is unlikely that oil will drop below $100 anytime soon. Maybe not anytime ever.

Plus, it is unlikely that Congress will do anything significant to actually curb our dependence on oil, so having the ability to expand the supply could further benefit XTO.

Additionally, this acquisition has implications in other areas. If XTO starts drilling on its newly acquired properties, oil services companies (such as Baker Hughes — BHI) are likely to see some benefit as well.

Disclosure: I do not own any of the stocks listed above.

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