XTO Monetizes and Resets 37% of 2009 Hedge Position

XTO has announced that over the past thirty days it has entered into early settlement and reset arrangements with respect to 37% of its 2009 commodity hedge volumes. As a result of these early settlements, the Company realized about $900 million of after-tax proceeds which it used to reduce its outstanding debt. The Company expects to end the first quarter of 2009 with net debt of approximately $11 billion. The net effect of the early settlements is to accelerate cash receipts, while maintaining the Company's full hedge position against further declines in oil and natural gas prices during the year. For accounting purposes, the commodity hedge gains and losses will be recognized in the underlying production quarter.

"These hedge monetizations and the resulting debt repayment highlight our ongoing commitment to financial strength in these uncertain times," stated Bob R. Simpson, Chairman and Founder. "By executing these transactions, the Company has already accomplished the lion's share of our announced minimum debt reduction of $1.25 billion. With our strong cash margins and expansive development inventory, XTO maintains maximum flexibility for growing long-term shareholder value."