XTO Energy Expects Year-End 2004 Reserves to Exceed 5.8 Tcfe
XTO Energy
In connection with
its securities analysts meeting, XTO Energy Inc. announces
preliminary reserve estimates for year-end 2004 and provides guidance for
2005.
The Company expects year-end 2004 proved reserves to exceed 5.8 trillion cubic feet of gas equivalent (Tcfe). These reserve volumes imply an all-in finding and development cost for the year, including acquisitions, of between $1.15 - $1.25 per thousand cubic feet of gas equivalent (Mcfe). Proved reserves estimates, prepared by Miller & Lents, Ltd., will be available by late February.
2005 GUIDANCE
XTO Energy has prepared guidance for 2005 based on current expectations for production, expenses and other parameters resulting from ongoing operations and the Company's 2005 capital budget. 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's estimated ranges of average daily production for 2005:
Pricing Differentials
For the year, the Company's realized natural gas prices are expected to be $0.60 to $0.70 below the NYMEX Henry Hub price, assuming a $6.00 per Mcf gas price and before consideration of hedging activities. Natural gas liquids prices are expected to be about 55% to 65% of the average NYMEX oil price. The Company's realized oil prices should be about $2.50 to $3.50 below the average NYMEX price, assuming a $42.00 per Bbl oil price and before consideration of hedging activities.
Expenses
The following table presents the Company's expected expenses per Mcfe for 2005 assuming a $6.00 per Mcf NYMEX gas price and a $42.00 per Bbl NYMEX oil price:
Hedging
The Company's hedging positions for natural gas and oil are summarized below:
Income Tax
For 2005, the Company projects a 35% effective tax rate, with up to 40% of that amount expected to be currently payable.
The Company expects year-end 2004 proved reserves to exceed 5.8 trillion cubic feet of gas equivalent (Tcfe). These reserve volumes imply an all-in finding and development cost for the year, including acquisitions, of between $1.15 - $1.25 per thousand cubic feet of gas equivalent (Mcfe). Proved reserves estimates, prepared by Miller & Lents, Ltd., will be available by late February.
2005 GUIDANCE
XTO Energy has prepared guidance for 2005 based on current expectations for production, expenses and other parameters resulting from ongoing operations and the Company's 2005 capital budget. 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's estimated ranges of average daily production for 2005:
Nine Months Q1 Q2 - Q4 Natural Gas (Mmcf) 920 - 930 1,000 - 1,040 NGL (Mbbl) 7.5 - 8.0 7.5 - 8.0 Oil (Mbbl) 31.5 - 32.5 31.5 - 32.5 Total Gas Equivalent (Mcfe) 1,154 - 1,173 1,234 - 1,283
Pricing Differentials
For the year, the Company's realized natural gas prices are expected to be $0.60 to $0.70 below the NYMEX Henry Hub price, assuming a $6.00 per Mcf gas price and before consideration of hedging activities. Natural gas liquids prices are expected to be about 55% to 65% of the average NYMEX oil price. The Company's realized oil prices should be about $2.50 to $3.50 below the average NYMEX price, assuming a $42.00 per Bbl oil price and before consideration of hedging activities.
Expenses
The following table presents the Company's expected expenses per Mcfe for 2005 assuming a $6.00 per Mcf NYMEX gas price and a $42.00 per Bbl NYMEX oil price:
Expense ($/Mcfe) Q1 Q2 - Q4 Production $0.71 $0.70 Taxes, transportation and other 0.52 0.52 Exploration 0.03 0.03 Depreciation, depletion and amortization 1.15 1.21 Accretion of asset retirement obligation 0.03 0.03 General and administrative (a) 0.18 0.18 Interest 0.26 0.26 (a) Excludes stock-based incentive compensation
Hedging
The Company's hedging positions for natural gas and oil are summarized below:
Mcf or Bbls NYMEX Price per Day per Mcf or Bbls Natural Gas Jan-Dec 2005 250,000 $ 5.90 Oil Jan-Dec 2005 15,000 $ 38.37
Income Tax
For 2005, the Company projects a 35% effective tax rate, with up to 40% of that amount expected to be currently payable.
RELATED COMPANIES
Most Popular Articles
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea