XTO Energy Inc. has reported record production in the second quarter 2008 of 2.20 billion cubic feet equivalent (Bcfe) per day, up 29% from the second quarter 2007 level of 1.70 Bcfe per day, and up 4% sequentially from 2.11 Bcfe per day in first quarter 2008. Total revenues for the second quarter were $1.94 billion, a 46% increase from $1.33 billion the prior year. Earnings for the quarter reached $575 million, or $1.13 per share ($1.11 diluted), a 33% increase from second quarter 2007 earnings of $432 million, or $0.93 per share ($0.91 diluted). Second quarter 2008 earnings include the effect of a $22 million non-cash derivative fair value gain. Excluding this non-cash change, the Company's adjusted earnings for second quarter 2008 were $553 million, or $1.09 per share ($1.07 diluted), up 28% compared to second quarter 2007 adjusted earnings of $432 million, or $0.93 per share ($0.91 diluted).
Second quarter 2008 daily gas production averaged 1.80 Bcf, up 35% from second quarter 2007 daily production of 1.33 Bcf. Daily oil production for the second quarter was 51.3 thousand barrels, an 11% increase from the second quarter 2007 level of 46.1 thousand barrels. During the quarter, natural gas liquids production was 15.6 thousand barrels per day, a 3% increase from the prior year quarter rate of 15.2 thousand barrels per day.
The average realized gas price for the second quarter increased 7% to $8.51 per thousand cubic feet (Mcf) from $7.94 per Mcf in second quarter 2007. Natural gas liquids prices averaged $58.87 per barrel for the quarter, 43% higher than the 2007 quarter average price of $41.20. The second quarter average oil price was $90.89 per barrel, a 36% increase from last year's second quarter average price of $67.03.
For the first six months of 2008, the Company reported earnings of $1.04 billion, or $2.07 per share ($2.04 diluted), compared with earnings of $815 million, or $1.77 per share ($1.74 diluted) for the same 2007 period. Included in year-to-date 2008 earnings is the effect of a $31 million non-cash derivative fair value gain. Excluding this non-cash change, the Company's adjusted earnings were $1.01 billion, or $2.01 per share ($1.98 diluted), up 20% compared to year-to-date 2007 adjusted earnings of $838 million, or $1.82 per share ($1.79 diluted).(1) Operating cash flow was $2.29 billion for the first half of 2008, up 37% compared with $1.67 billion for the 2007 period.(1) Total revenues for the first six months of 2008 were $3.61 billion, a 44% increase from revenues of $2.50 billion for the same 2007 period. Year-to- date operating income was $1.83 billion, a 33% increase from $1.37 billion for the first half of 2007.