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XTO Energy Updates Performance Guidance; Increases 2009 Production Target From 16% to 20%; Raises Capital Budget

Posted on: Wednesday, 5 August 2009, 07:32 CDT

FORT WORTH, Texas, Aug. 5 /PRNewswire-FirstCall/ -- XTO Energy Inc. (NYSE: XTO) is providing operational and financial guidance for the remainder of 2009 based on current expectations for production, expenses and other parameters resulting from ongoing operations and development budget activities. These statements are forward looking, as described in the final paragraph of this release, and actual results may differ materially. These estimates do not include derivative fair value gains and losses, the effects of possible future acquisitions or divestitures, or unforeseen events that may occur after this release.

Production

The Company is raising its targeted annual production growth to 20% for 2009. This guidance reflects a lower rig count and anticipates involuntary curtailment in the second half of 2009 due to high natural gas storage levels. The estimated ranges of average daily production for the remainder of 2009 are:

Q3 - Q4 ------- Natural Gas (MMcf) 2,270 - 2,290 NGL (MBbl) 19 Oil (MBbl) 68 Total Gas Equivalent (MMcfe) 2,792 - 2,812

Price Realizations and Differentials

The Company's realized natural gas and oil prices are expected to average below the NYMEX prices due to regional differentials. The following are estimated pricing differentials, or percentage reductions to NYMEX prices, before consideration of any hedging activity:

Q3 - Q4 Differential (Percentage of NYMEX) --------------------- Natural Gas 14 - 16% Oil 10 - 12%

Realized pricing for natural gas liquids (NGL) is expected to be about 40% to 45% of the average NYMEX oil price.

Expenses

The following table presents the Company's expected expenses per Mcfe assuming a $4.00 per Mcf NYMEX gas price and a $60.00 per Bbl NYMEX oil price:

Expense ($/Mcfe) Q3 - Q4 ---------------- ------- Production 0.95 - 1.00 Taxes, transportation and other 0.60 - 0.65 Exploration 0.05 - 0.10 Depreciation, depletion and amortization 2.95 - 3.00 Accretion of asset retirement obligation 0.02 - 0.04 General and administrative: cash 0.25 - 0.30 General and administrative: non-cash, stock-based 0.12 - 0.18 Interest 0.53 - 0.57

2009 Capital Budget

The Company is increasing its budget for development and exploration expenditures from $2.75 billion to $3.1 billion. Expenditures for construction of pipeline infrastructure, compression and processing facilities will increase from $450 million to $500 million.

Hedging

The Company's current NYMEX hedging positions for natural gas and oil are:

PRODUCTION: Mcf or Bbls NYMEX Price Natural Gas per Day per Mcf or Bbl ----------- ------- -------------- 2009 Jul - Dec* 1,745,000 $8.79 2010 Jan - Dec 730,000 $8.67 Oil --- 2009 Jul - Dec** 62,500 $117.11 2010 Jan - Dec 70,000 $95.70 * Includes swap agreements for 1,273,000 Mcf per day which were early settled and reset at current market prices. The price shown is the price that will be used for cash flow hedge accounting purposes and has been reduced for transaction costs related to the early settlements. The weighted average cash settlement contract price for all contracts is $6.35 per Mcf. ** Includes swap agreements for 57,000 Bbls per day which were early settled and reset at current market prices. The price shown is the price that will be used for cash flow hedge accounting purposes and has been reduced for transaction costs related to the early settlements. The weighted average cash settlement contract price for all contracts is $58.64 per Bbl.

Income Tax

For the year, the Company projects a 37% effective tax rate, with approximately 40% of that amount expected to be currently payable.

XTO Energy Inc. is a domestic natural gas producer engaged in the acquisition, exploitation and development of quality, long-lived oil and natural gas properties in the United States.

This release can be found at http://www.xtoenergy.com.

Statements made in this news release, including those relating to production growth, average daily production, price realizations and differentials, commodity prices, expenses and effective income tax rates and percentage currently payable are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the timing and extent of changes in oil and gas prices, changes in underlying demand for oil and gas, the timing and results of drilling activity, the timing of production, treatment and transportation facility installations, curtailments by third-party pipelines and processing or treatment facilities, changes in interest rates, higher than expected production costs and other expenses and failure to timely integrate acquired properties and personnel. The Company undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in the Company's filings with the Securities and Exchange Commission, which are incorporated by this reference as though fully set forth herein.

SOURCE XTO Energy Inc.

Source: PR Newswire

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