Loews is taking roughly $4 billion worth of Dominion Resources'
XTO investors don't seem to mind paying roughly $2.50/mcfe, which is somewhat high relative to recent mergers and acquisitions activity in the space. The company's shares hit a record high in response to the news. Looking at the present valuations of gas players like Cimarex Energy
Back at Loews, CEO Jim Tisch commented that even if gas prices stay flat in the future, the company would "do very well" with its investment. However, many Fools foresee a much more bullish supply/demand picture for natural gas. Their votes for the winner of this year's Stock Madness tournament partly attest to that view. It's one I personally subscribe to, as well. For that reason, I think Loews will be able to sail high on this particular investment.