XTO Energy Inc. reported record first quarter 2008 production of 2.11 billion cubic feet equivalent (Bcfe) per day, up 32% from the first quarter 2007 level of 1.60 Bcfe per day. Total revenues for the first quarter were $1.67 billion, a 43% increase from $1.17 billion the prior year. Earnings for the quarter were $465 million, or $0.94 per share ($0.92 diluted), compared with first quarter 2007 earnings of $383 million, or $0.83 per share ($0.82 diluted). First quarter 2008 earnings include the effects of a non-cash derivative fair value gain. Excluding this non-cash change, the Company's adjusted earnings were $456 million, or $0.92 per share ($0.91 diluted), compared to first quarter 2007 adjusted earnings of $406 million, or $0.89 per share ($0.87 diluted).(1)
Operating income for the quarter was $824 million, a 27% increase from first quarter 2007 operating income of $647 million. Operating cash flow, defined as cash provided by operations, before changes in operating assets and liabilities and exploration expense, was $1.06 billion, up 33% from 2007 first quarter comparable operating cash flow of $795 million.(1)
First quarter daily gas production averaged 1.71 billion cubic feet (Bcf), up 35% from first quarter 2007 daily production of 1.26 Bcf. Daily oil production for the first quarter was 51.5 thousand barrels, a 13% increase from the first quarter 2007 level of 45.6 thousand barrels. During the quarter, natural gas liquids production was 16.0 thousand barrels per day, a 48% increase from the prior year quarter rate of 10.8 thousand barrels per day.
"Our exceptional results in the first quarter provide a strong start to what we believe will be another record year for XTO," stated Bob R. Simpson, Chairman and Chief Executive Officer. "With the ongoing success of our capital programs, we are increasing the production growth target to 23% for the year, up from 20%. Given the unique opportunities in the acquisition market, we are also securing both producing properties and bolt-on leasehold to expand our future growth platforms, from East Texas to our multiple shale basins. As shareholders, we are imposing our commitment and discipline to creating long term value."
Keith A. Hutton, President, further comments. "Our operational teams delivered another record quarter with production volumes up 32% year over year, and 3% sequentially. In East Texas, the daily production from the Freestone Trend continued to move upwards, averaging 677 MMcfe for the period. In the Barnett Shale, current gross production has now reached 620 MMcfe per day. Our drilling in the Woodford and Fayetteville shales yielded several new wells with daily production rates averaging 3 MMcfe and 2 MMcfe, respectively. From our efforts in both west and south Texas, oil production increased by 6% over the last quarter, as significant wells came online. Overall, the Company is now operating 84 drilling rigs. Looking ahead in 2008, we are increasing our development budget from $2.6 to $3 billion to accommodate XTO's expanding growth opportunities."
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