FORT WORTH, Texas, July 19 /PRNewswire-FirstCall/ -- XTO Energy Inc.
(NYSE: XTO) has updated operational and financial guidance for the remainder
of 2005 based on current expectations for increased production, expenses and
other parameters resulting from ongoing operations and development budget
activities. These statements are forward looking, as described in the final
paragraph of this release, and actual results may differ materially. These
estimates do not include derivative fair value gains and losses, the effects
of possible future acquisitions or divestitures, or unforeseen events that may
occur after this release.
Production
The Company is increasing guidance for annual production volume growth to
27-29% for 2005. The estimated ranges of average daily production going
forward are:
Q3 Q4
Natural Gas (Mmcf) 1,045 - 1,060 1,060 - 1,080
NGL (Mbbl) 8.0 - 9.5 8.0 - 9.5
Oil (Mbbl) 39 - 41 39 - 41
Total Gas Equivalent (Mcfe) 1,327 - 1,363 1,342 - 1,383
Development Budget
The Company is increasing the 2005 budget for development events from $935
million to $1 billion to accommodate recent acquisitions, additional workover
and drilling activities and cost inflation.
Pricing Differentials
For the year, the Company's realized natural gas prices are expected to be
$0.65 to $0.75 below the NYMEX Henry Hub price, assuming a $7.00 per Mcf gas
price and before consideration of hedging activities. Natural gas liquids
prices are expected to be about 55% to 65% of the average NYMEX oil price.
The Company's realized oil prices should be about $3.50 to $4.50 below the
average NYMEX price, assuming a $50.00 per Bbl oil price and before
consideration of hedging activities.
Expenses
The following table presents the Company's expected expenses per Mcfe for
the remainder of 2005 assuming a $7.00 per Mcf NYMEX gas price and a $50.00
per Bbl NYMEX oil price:
Expense ($/Mcfe) Q3 - Q4
Production 0.76 - 0.80
Taxes, transportation and other 0.56 - 0.60
Exploration 0.03 - 0.05
Depreciation, depletion and amortization 1.30 - 1.40
Accretion of asset retirement obligation 0.02 - 0.03
General and administrative (a) 0.23 - 0.27
Interest 0.30 - 0.35
(a) Excludes stock-based incentive compensation
Hedging
The Company's hedging positions for natural gas and oil are:
Mcf or Bbls NYMEX Price
per Day per Mcf or Bbl
Natural Gas *
July-Dec 2005 260,000 $5.97
Jan-Dec 2006 10,000 $7.78
Oil
July-Dec 2005 15,000 $38.37
* Includes 10,000 Mcf per day of hedges acquired in the Antero Resources
acquisition, at their average April 1, 2005 mark-to-market NYMEX price
of $7.78 per Mcf.
Income Tax
The Company projects a 36% effective tax rate, with up to 40% of that
amount expected to be currently payable.
XTO Energy Inc. is a domestic energy producer engaged in the acquisition,
development and discovery 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 and
Louisiana.
This release can be found at http://www.xtoenergy.com .
Statements made in this news release, including those relating to annual
production volume growth, average daily production, development budget
expenditures, pricing differentials, commodity prices, expenses and income
taxes are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are based on assumptions and estimates that management
believes are reasonable based on currently available information; however,
management's assumptions and the Company's future performance are subject to a
wide range of business risks and uncertainties and there is no assurance that
these goals and projections can or will be met. Any number of factors could
cause actual results to differ materially from those in the forward-looking
statements, including, but not limited to, the timing and extent of changes in
oil and gas prices, changes in underlying demand for oil and gas, the timing
and results of drilling activity, the timing of production, treatment and
transportation facility installations, the availability of drilling equipment
and technical personnel, curtailments by third-party pipelines and processing
or treatment facilities, changes in interest rates and higher than expected
production costs and other expenses. The Company undertakes no obligation to
publicly update or revise any forward-looking statements. Further information
on risks and uncertainties is available in the Company's filings with the
Securities and Exchange Commission, which are incorporated by this reference
as though fully set forth herein.
SOURCE XTO Energy Inc.
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Related links:
http://www.xtoenergy.com
CONTACT:
Louis G. Baldwin, Executive Vice President &
Chief Financial Officer, or Gary D. Simpson, Senior Vice
President Investor Relations & Finance, both of XTO Energy Inc.,
+1-817-870-2800
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