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XTO Anticipates Double-Digit Output through 2007

Fort Worth-based XTO Energy Inc. has added price hedges for future sales of natural gas and oil production through 2008, securing its plans to increase production growth in 2006 up to 12% and to have "at least" double-digit growth in 2007, according to the CEO.

The total production volumes hedged represent about 40% of equivalent production for the rest of 2006 and about 33% of equivalent production in 2007. Between June and September, XTO locked in 260 MMcf/d at $11/06/Mcf, and between October and December, it has locked in 585 MMcf/d at $10.48. Between January and December 2007, XTO locked in 500 MMcf/d at $10.05/Mcf.

For oil, XTO locked in 37,000 bbl/d between June and December at $68.38/bbl, and between January and December 2007, it locked in another 37,000 bbl/d at $74.41. Between January and December 2008, XTO locked in 22,500 bbl/d at $74.27/bbl.

"Given these robust price hedges, XTO has substantially secured our current plans of 11-12% production growth in 2006 and at least double-digit growth in 2007," said CEO Bob R. Simpson. "Our acquisition and development investments have fueled dramatic growth in oil production, up from 13,000 bbl/d in 2004 to more than 44,000 bbl today, and continue to create substantial value for our shareholders by supplementing XTO's natural gas business.

"Looking at 2006, while most expect a squeeze in economic performance, we anticipate another year of expanding cash margins on our record production rates," Simpson said.

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