During 2005, XTO Energy added 2.337 Tcfe at a cost of $1.44 per thousand cubic feet of gas equivalent (Mcfe), replacing 481% of production. Including asset retirement obligations, the cost rises to $1.47 per Mcfe. The Company's development program replaced 274% of production or 1.330 Tcfe at a cost of $1.12 per Mcfe.
Based on year-end prices of $9.26 per thousand cubic feet of gas (Mcf), $36.33 per barrel of natural gas liquids and $57.02 per barrel of oil and on constant cost assumptions, estimated future net cash flows, before income taxes, totaled $50.9 billion at December 31, 2005. The present value before income tax, discounted at 10%, was $25.8 billion, compared to $12.2 billion at year-end 2004. Year-end 2004 prices were $5.69 per Mcf of gas, $28.24 per barrel of natural gas liquids and $41.03 per barrel of oil.
XTO Energy Inc. is a domestic energy producer engaged in the acquisition, development and discovery 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 and Louisiana.
XTO ENERGY INC. Proved Oil and Gas Reserves December 31, 2005 Natural (in millions) Gas Gas Liquids Oil (Mcf) (Bbls) (Bbls) BOE Mcfe Proved Developed 4,033.1 36.5 168.5 877.1 5,262.9 Proved Undeveloped 2,052.5 10.9 40.2 393.3 2,359.3 Total Proved 6,085.6 47.4 208.7 1,270.4 7,622.2 Estimated future net cash flows of proved reserves, before income tax (A) $50,897 Present value of future net cash flows discounted at 10%, after income tax (or standardized measure disclosure under SFAS No. 69) $17,094 Add: Present value of future income tax discounted at 10% 8,722 Present value of future net cash flows discounted at 10% before income tax (A) $25,816 (A) Management believes that pre-tax cash flow amounts are also useful for evaluative purposes since future income taxes, that are affected by a company's unique tax position and strategies, can make after-tax amounts less comparable. Changes in Proved Reserves Natural (in millions) Gas Gas Liquids Oil (Mcf) (Bbls) (Bbls) BOE Mcfe December 31, 2004 4,714.5 38.5 152.5 976.7 5,860.3 Revisions 4.0 5.3 12.1 18.1 108.5 Extensions and discoveries 986.6 4.9 34.2 203.5 1,221.2 Production (377.1) (3.8) (14.3) (80.9) (485.5) Purchases in place 803.4 2.8 31.1 167.9 1,007.1 Sales in place (45.8) (0.3) (6.9) (14.9) (89.4) December 31, 2005 6,085.6 47.4 208.7 1,270.4 7,622.2 Acquisition, Development and Exploration Costs Incurred During 2005 The following table summarizes costs incurred, whether such costs are capitalized or expensed for financial reporting purposes: (in millions) Acquisitions: Proved properties $ 1,710 Unproved properties - acquisition of corporation (A) 180 Unproved properties - other 92 Development (B) 1,341 Exploration © 52 Asset retirement obligation accrual 53 Total costs incurred disclosure under SFAS No. 69 3,428 Asset retirement obligation accrual (53) Total costs incurred before asset retirement cost accrual (D) $ 3,375 (A) Represents a portion of the allocated purchase price of Antero Resources Corporation. (B) Includes $6 million of capitalized interest. © Primarily includes exploratory drilling, geological and geophysical costs. (D) For purposes of evaluating annual costs incurred, management excludes the asset retirement obligation accrual since these estimated costs are related to future activities, and are deducted in the calculation of estimated future net cash flows of proved reserves.
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