Becoming the latest industry player to attempt to cash in on natural gas market volatility, Fort Worth-based XTO Energy Inc. has hedged 100 MMcf/d of production for 2003 at an average New York Mercantile Exchange (Nymex) price of $4.06/Mcf. A few days ago, Energen Resources Corp. locked in 40 new natural gas contracts in all 12 months of 2003, representing 4.8 Bcf of production at an average Nymex price of $4.10/Mcf.

XTO said the hedged volumes are expected to represent less than 20% of the company’s gas production for 2003. “We are proud to begin securing another year of exceptional financial and operational performance for our investors,” stated Bob R. Simpson, XTO’s CEO.

XTO President Steffen E. Palko added, “With our unprecedented low-risk development inventory, our goal is to continue to realize strong economics for investors while increasing production and the proven reserve base.”

Energen said with its new hedges, it now has 6.7 Bcf of gas, or approximately 13% of its estimated 2003 gas production of 50.5 Bcf, hedged at an average Nymex price of approximately $4.07/Mcf. The company added that its oil production currently remains unhedged.

Energen said its earnings guidance for 2003 should not be impacted materially by these additional hedges. The company’s earnings guidance for 2003 assumes average Nymex prices for its unhedged gas and oil production of $3.65/Mcf and $23/bbl, respectively. Energen added that it continues to monitor the commodity price environment and remains prepared to capitalize on future volatility by entering into additional 2003 hedges, in keeping with its past hedging practices.

Birmingham, AL-based Energen is a diversified energy holding company involved in natural gas distribution in central and north Alabama and the acquisition, exploitation, exploration and production of natural gas, oil and natural gas liquids onshore in North America.

XTO Energy Inc. is a domestic gas producer engaged in the acquisition, exploitation and development of long-lived oil and gas properties. Its properties are concentrated in Texas, Oklahoma, Kansas, New Mexico, Arkansas, Wyoming, Alaska and Louisiana.

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