FORT WORTH, Texas, July 22 /PRNewswire-FirstCall/ -- XTO Energy Inc.
(NYSE: XTO) announced today that it has entered into definitive agreements
with multiple parties to purchase producing properties located in its Eastern
and San Juan Regions and acreage positions in the Marcellus, Fayetteville,
Barnett, and Haynesville shales, for a total of about $1.3 billion, of which
$1 billion closed during the second quarter. From the producing properties,
XTO Energy's internal engineers estimate proved reserves to be 185 billion
cubic feet of natural gas equivalent (Bcfe) of which approximately 60% are
proved developed. Starting July 1, these acquisitions add 20 million cubic
feet of natural gas equivalent per day (MMcfe/d) to the Company's production
base. In the high potential shale plays, the Company added more than 280,000
net undeveloped acres to its inventory for future development, primarily in
the Marcellus and Fayetteville.
"Over the past two decades, we have built XTO Energy as a top growth
company and leading value creator in the industry by acquiring the best proven
properties and making them better. In 2008, we have amplified this strategy,"
stated Bob R. Simpson, Chairman and Chief Executive Officer. "With the
transactions announced today, including our Barnett Shale acquisition, XTO has
now committed to a total of $10.6 billion in assets this year which complement
and expand our operated positions across the nation. Through diligence,
discipline and hundreds of transactions, we are acquiring the equivalent of a
very high-grade unique company. This handcrafted company contributes a
portfolio of properties in our legacy basins and adds expansive undeveloped
acreage in all the premier emerging shale plays. As a result, the new XTO is
a better franchise with more growth firepower for the future."
Keith A. Hutton, President, further noted, "During the year, our team has
now aggregated 1.4 million net undeveloped acres in the best resource basins
where XTO has identified tremendous potential for long-term growth.
Acquisitions in 2008 represent over 2.3 Tcfe of proven reserves today and
another 6 to 8 Tcfe in upsides. We plan to aggressively capture the
opportunities in the field, deliver the growth in production and reserves and,
as always, create value for our shareholders."
XTO Energy Inc. is a domestic natural gas 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, Louisiana, Mississippi, Montana, North Dakota, Pennsylvania and West
Virginia.
This release can be found at http://www.xtoenergy.com.
Statements made in this news release, including those relating to proved
reserves and proved developed reserves from producing properties, additions to
production base, long-term growth potential, reserve upsides, value creation
and growth of production and reserves 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, failure to close pending acquisitions, objections to a pending
acquisition by the Federal Trade Commission under the Hart-Scott-Rodino Act,
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,
production downtime due to maintenance, weather or other factors outside the
Company's control, the availability of drilling equipment and technical
personnel, changes in interest rates, higher than expected production costs
and other expenses, failure to timely integrate acquired properties and
personnel and general economic conditions. 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.
Reserve estimates and estimates of reserve potential or upside with
respect to the pending acquisitions were made by our internal engineers
without review by an independent petroleum engineering firm. Data used to
make these estimates were furnished by the sellers and may not be as complete
as that which is available for our owned properties. We believe our estimates
of proved reserves comply with criteria provided under rules of the Securities
and Exchange Commission. However, investors are urged to consider closely the
disclosure in our Form 10-K for the year ended December 31,2007 and in our
other filings with the SEC.
The Securities and Exchange Commission has generally permitted oil and gas
companies, in their filings made with the SEC, to disclose only proved
reserves that a company has demonstrated by actual production or conclusive
formation test to be economically and legally producible under existing
economic and operating conditions. We use the terms reserve "potential" or
"upside" or other descriptions of volumes of reserves potentially recoverable
through additional drilling or recovery techniques that the SEC's guidelines
may prohibit us from including in filings with the SEC. These estimates are
by their nature more speculative than estimates of proved reserves and
accordingly are subject to substantially greater risk of being actually
realized by the Company.
SOURCE: XTO Energy Inc.
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
Web site: http://www.xtoenergy.com
