XTO Energy Completes Acquisition of ChevronTexaco Properties

XTO Energy Inc. has closed its previously announced purchase of properties from ChevronTexaco for $912 million, of which $110 million was paid as a deposit in May 2004. The Company's internal engineers estimate acquired reserves to be 732 billion cubic feet equivalent (Bcfe) of natural gas, after adjustments for preferential purchase right elections and production sold from January 1, 2004. These legacy properties expand XTO's operations in its Eastern Region, the Permian Basin and Mid-Continent area while opening new coal bed methane operations in the Rocky Mountains and a new operating region in South Texas. Beginning August 16, 2004, the acquired properties will contribute daily production of about 88 million cubic feet of natural gas and 14,000 barrels of oil, which is already reflected in the Company's guidance. About 87% of the reserves are proved developed with 47% of the reserves attributable to oil.

"The closing of this transaction culminates more than a year's worth of focus and diligence from our team at XTO. As often highlighted, our proficiency in acquiring the right assets -- those with long-lived producing histories, strong margins and expansive upsides -- is the foundation for ongoing value creation for our shareholders," stated Bob R. Simpson, Chairman and Chief Executive Officer. "This watershed event sets the stage for years of continued profitable growth from the energy company that has always been a growth company."

"This acquisition offers the opportunity to apply our exploitation skills to high-quality properties which need capital and dedicated expertise," noted Steffen E. Palko, Vice Chairman and President. "We anticipate a smooth transition of operations into our districts and the immediate work agenda will entail field optimizations. With the Company's current production growth goal of 28% to 30% this year and 18% to 20% in 2005, we can patiently integrate new drilling inventory into our long-term plans for double-digit organic growth."

The closing price of $912 million includes adjustments for net revenues from the January 1, 2004 effective date, preferential purchase right elections and other typical closing effects. A deposit of $110 million was paid toward this purchase price in May 2004. Post-closing adjustments regarding outstanding preferential purchase rights, final net revenues, volume balancing and income tax effects will be made within twelve months. The purchase was funded through existing bank credit facilities and the sale of common stock in May 2004.