DOW JONES NEWSWIRES
XTO Energy Inc. (XTO) cut its planned 2009 capital spending by
17% as the oil-and-gas explorer generated some $800 million in
proceeds from settling hedging agreements.
That money will go toward reducing debt, which surged last year
amid acquisitions that culminated in XTO's $4.2 billion acquisition
of closely held Hunt Petroleum.
XTO's capital budget for development and exploration is now
$2.75 billion, down from $3.3 billion. Budgeted outlays for
constructing pipeline infrastructure, compression and processing
facilities is now $450 million, down 10%.
Chairman and founder Bob R. Simpson said that increasing
production too rapidly into the currently oversupplied natural gas
markets is not a prudent use of shareholders' resources, adding the
company is looking to capitalize instead on its hedge position,
which represents 80% of expected sales volumes.
As such, XTO cut its 2009 production-growth target to 14%.
Shares rose 0.7% premarket to $36.27. The stock has been halved
since crude-oil prices peaked midyear 2008.
-By Shirleen Dorman, Dow Jones Newswires; 201-938-2310;
shirleen.dorman@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front
page of today's most important business and market news, analysis
and commentary. You can use this link on the day this article is
published and the following day.