XTO Energy Increases Development Budget to $935 Million

XTO Energy Inc. has updated operational and financial guidance for the remainder of 2005 based on current expectations for increased production, expenses and other parameters resulting from ongoing operations and development budget activities.


The Company is increasing guidance for annual production volume growth to 24-26% for 2005. The estimated ranges of average daily production going forward are:

Six Months

Q2 Q3 - Q4

Natural Gas (Mmcf) 1,000 - 1,015 1,040 - 1,070

NGL (Mbbl) 8.0 - 9.5 8.0 - 9.5

Oil (Mbbl) 34 - 35 34 - 35

Total Gas Equivalent (Mcfe) 1,252 - 1,282 1,292 - 1,337

Development Budget

The Company is increasing the 2005 budget for development events from $850 million to $935 million to accommodate recent acquisitions and additional workover and drilling activities.

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 $6.50 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 $3.00 to $4.00 below the average NYMEX price, assuming a $45.00 per Bbl oil price and before consideration of hedging activities.


The following table presents the Company's expected expenses per Mcfe for the remainder of 2005 assuming a $6.50 per Mcf NYMEX gas price and a $45.00 per Bbl NYMEX oil price:

Expense ($/Mcfe) Q2 - Q4

Production 0.74 - 0.78

Taxes, transportation and other 0.53 - 0.57

Exploration 0.02 - 0.05

Depreciation, depletion and amortization 1.25 - 1.35

Accretion of asset retirement obligation 0.02 - 0.03

General and administrative (a) 0.19 - 0.22

Interest 0.30 - 0.32

(a) Excludes stock-based incentive compensation


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

Mcf or Bbls NYMEX Price

per Day per Mcf or Bbls

Natural Gas *

Apr-Dec 2005 260,000 $5.97

Jan-Dec 2006 10,000 $7.78


Apr-Dec 2005 15,000 $38.37

* Includes 10,000 Mcf per day of hedges acquired in the

Antero Resources acquisition, at their average April 1, 2005

mark-to-market NYMEX price of $7.78 per Mcf.

Income Tax

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 : $48.06/BBL 2.51%
Light Crude Oil : $45.77/BBL 2.17%
Natural Gas : $2.97/MMBtu 2.30%
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