XTO Energy Expects Year-End 2004 Reserves to Exceed 5.8 Tcfe

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.


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.


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.


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


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

     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.

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Brent Crude Oil : $51.46/BBL 0.61%
Light Crude Oil : $50.52/BBL 0.64%
Natural Gas : $2.83/MMBtu 5.35%
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