XTO Plans $3.3B Budget to Increase Production by 18% in 2009

XTO Energy Inc. announced that its Board of Directors has approved a 2009 capital budget for development and exploration expenditures of $3.3 billion. An additional $500 million has been budgeted for the construction of pipeline infrastructure and compression and processing facilities. With these expenditures, the Company plans to increase 2009 production volumes by 18% over 2008 levels.

At the close of 2007, the company's 2008 budget was originally set at $2.6 billion, with an additional $400 million for pipeline and related facilities. This was an effort to increase their production volumes by 17% over 2007 levels. In April of 2008, the company increased it's 2008 capital budget further to $3.0 billion and increased the budget for pipeline and processing facilities to $500 million. In July 2008, the company estimated a 2009 development budget of $4.6 billion.

In June 2008, XTO announced the acquisition of Hunt Petroleum for $4.186 billion in cash and stock, which included exploration and production properties onshore US and the Gulf of Mexico.

"The budget approved today will provide for activity levels consistent with 2008 and positions us to take advantage of organizational efficiencies and falling costs. Moreover, combined with our expansive hedging program, XTO should have 18% production growth and record cash flow, with free cash flow approximating $2 billion. As a result, we will dedicate at least $1.25 billion to debt reduction," stated Bob R. Simpson, Chairman of the Board.

"In these challenging times, the strength of our property base allows XTO to continue to create shareholder value through volume growth and strong economic margins," stated Keith A. Hutton, President. "With this managed growth strategy, the Company expects to average utilizing 90 drilling rigs for 2009. Activities will include drilling 1,250 new wells and conducting 800 workover events."

During the year, the Eastern Region will be allocated $1.0 billion. The Barnett Shale Region will utilize about $800 million. The Arkoma Basin and Mid-Continent properties will be allocated $500 million. The Bakken, Gulf Coast and Offshore areas will be allocated $350 million. Programs in the Permian District are expected to utilize another $300 million. The San Juan, Raton, Uinta and Piceance basins combined will be allocated $250 million. Finally, the Company will target $100 million for exploration events.

XTO Energy Inc. is a domestic natural gas producer engaged in the acquisition, exploitation and development 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, Louisiana, Mississippi, Montana, North Dakota, Pennsylvania, New York, West Virginia and Kentucky.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Manager - Financial Reporting
Expertise: Accounting|Financial Analyst
Location: Houston, TX
JIB Supervisor
Expertise: Accounting
Location: Houston, TX
Big 4 Trained Senior Auditor
Expertise: Accounting
Location: Houston, TX
search for more jobs

Brent Crude Oil : $50.79/BBL 1.30%
Light Crude Oil : $49.96/BBL 1.10%
Natural Gas : $2.77/MMBtu 2.12%
Updated in last 24 hours