XTO Energy Increases 2005 Production Growth Guidance To 24-26%; Increases Development Budget To $935 Million and Updates Perform
April 20 2005 - 7:55AM
PR Newswire (US)
XTO Energy Increases 2005 Production Growth Guidance To 24-26%;
Increases Development Budget To $935 Million and Updates
Performance Guidance FORT WORTH, Texas, April 20
/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 24-26% for 2005.
The estimated ranges of average daily production going forward are:
Six Months Q2 Q3 - Q4 Natural Gas (Mmcf) 1,000 - 1,015 1,040 -
1,070 NGL (Mbbl) 8.0 - 9.5 8.0 - 9.5 Oil (Mbbl) 34 - 35 34 - 35
Total Gas Equivalent (Mcfe) 1,252 - 1,282 1,292 - 1,337 Development
Budget The Company is increasing the 2005 budget for development
events from $850 million to $935 million to accommodate recent
acquisitions and additional workover and drilling activities.
Pricing Differentials For the year, the Company's realized natural
gas prices are expected to be $0.60 to $0.70 below the NYMEX Henry
Hub price, assuming a $6.50 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 $3.00 to $4.00 below
the average NYMEX price, assuming a $45.00 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 $6.50 per Mcf NYMEX gas price and a
$45.00 per Bbl NYMEX oil price: Expense ($/Mcfe) Q2 - Q4 Production
0.74 - 0.78 Taxes, transportation and other 0.53 - 0.57 Exploration
0.02 - 0.05 Depreciation, depletion and amortization 1.25 - 1.35
Accretion of asset retirement obligation 0.02 - 0.03 General and
administrative (a) 0.19 - 0.22 Interest 0.30 - 0.32 (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 Bbls Natural Gas * Apr-Dec 2005 260,000 $5.97
Jan-Dec 2006 10,000 $7.78 Oil Apr-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 35%
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, 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 and
Louisiana. This release can be found at http://www.xtoenergy.com/.
Statements made in this news release, including those relating to
commodity prices, annual production volume growth, average daily
production, development budget expenditures, pricing differentials,
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, changes in interest rates,
higher than expected production costs and other expenses and
failure to close any pending acquisitions. 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. DATASOURCE: XTO Energy Inc. CONTACT: Louis
G. Baldwin, Executive Vice President & Chief Financial Officer,
817-870-2800, or Gary D. Simpson, Senior Vice President, Investor
Relations & Finance, 817-870-2800, both of XTO Energy Inc. Web
site: http://www.xtoenergy.com/
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