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XTO Energy Increases 2006 Production Growth Guidance To 13-14%; Increases Development Budget to $2.1 Billion and Updates Performance Guidance

Posted on: Tuesday, 25 July 2006, 15:01 CDT

FORT WORTH, Texas, July 25 /PRNewswire-FirstCall/ -- XTO Energy Inc. has updated operational and financial guidance for the remainder of 2006 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 increasing guidance for annual production volume growth to 13-14% for 2006. The estimated ranges of average daily production for the remainder of 2006 are:

Q3 Q4 Natural Gas (Mmcf) 1,180 - 1,190 1,200 - 1,225 NGL (Mbbl) 11 - 12 11 - 12 Oil (Mbbl) 45 45 Total Gas Equivalent (Mcfe) (a) 1,516 - 1,532 1,536 - 1,567 (a) Net of the Hugoton Royalty Trust (HGT) Units distribution reducing production by an estimated 37 MMcfe/d in Q3 and Q4 Development Budget

The Company is increasing its 2006 development budget from $1.7 billion to $2.1 billion to accommodate higher working interests and additional fracturing costs in the Barnett Shale, acreage leasing events and 50 additional development wells. The 2006 drill bit finding cost is anticipated to be about $1.50 per Mcfe.

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 13 - 16% Oil 7 - 9%

Realized pricing for natural gas liquids (NGL) is expected to be about 55% to 65% of the average NYMEX oil price.

Expenses

The following table presents the Company's expected expenses per Mcfe for the remainder of 2006 assuming a $7.00 per Mcf NYMEX gas price and a $70.00 per Bbl NYMEX oil price:

Expense ($/Mcfe) Q3 - Q4 Production 0.87 - 0.92 Taxes, transportation and other 0.65 - 0.70 Exploration 0.05 - 0.10 Depreciation, depletion and amortization 1.55 - 1.65 Accretion of asset retirement obligation 0.02 - 0.04 General and administrative (b) 0.26 - 0.31 Interest 0.34 - 0.36 (b) Includes impact of expensing current stock options under adoption of SFAS No. 123R Hedging The Company's current hedging positions for natural gas and oil are: Mcf or Bbls NYMEX Price per Day per Mcf or Bbl PRODUCTION: Natural Gas July-Sep 2006 260,000 $ 11.06 Oct-Dec 2006 585,000 $ 10.48 Jan-Dec 2007 500,000 $ 10.05 Oil July-Dec 2006 37,500 $ 68.37 Jan-Dec 2007 37,500 $ 74.40 Jan-Dec 2008 22,500 $ 74.26 Income Tax

For the full-year 2006, the Company projects a 37% effective tax rate, with up to 45% of that amount expected to be currently payable, excluding any impact from the distribution of Hugoton Royalty Trust (HGT) Units or increase in state income tax rates.

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. Its properties are concentrated in Texas, New Mexico, Arkansas, Oklahoma, Kansas, Wyoming, Colorado, Alaska, Utah, Louisiana and Mississippi.

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

Statements made in this news release, including those relating to annual production volume growth, average daily production, development budget expenditures, drill bit finding cost per Mcfe, pricing differentials, commodity prices, expenses and income taxes 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, the availability of drilling equipment and technical personnel, curtailments by third-party pipelines and processing or treatment facilities, changes in interest rates and higher than expected production costs and other expenses. 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.

XTO Energy Inc.

CONTACT: Louis G. Baldwin, Executive Vice President & Chief FinancialOfficer, or Gary D. Simpson, Senior Vice President Investor Relations &Finance, both of XTO Energy Inc., +1-817-870-2800

Web site: http://www.xtoenergy.com/

Source: PRNewswire-FirstCall

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