XTO Xto Energy, Inc.

XTO Energy Updates 2004 Guidance FORT WORTH, Texas, July 20 /PRNewswire-FirstCall/ -- XTO Energy Inc. (NYSE:XTO) announces updated operational and financial guidance for the remainder of 2004. The following estimates are based on current expectations for 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, stock-based incentive compensation, the effects of possible future acquisitions or divestitures, or unforeseen events that may occur after this release. Production Production guidance for Q3 has been adjusted to reflect a later closing date for the ChevronTexaco acquisition. The transaction will now close no later than August 16, 2004, ten days later than originally announced. The Company's estimated ranges of average daily production by quarter for the remainder of the year are: Q3 Q4 Natural Gas (Mmcf) 860 - 865 925 - 930 Oil (Mbbl) 26.5 - 27.0 33.0 - 33.5 NGL (Mbbl) 6.5 - 7.0 6.5 - 7.0 Pricing Differentials For the remainder of the year, the Company's realized natural gas prices are expected to be $0.45 to $0.55 below the NYMEX Henry Hub price, assuming a $5.50 per Mcf gas price and before consideration of hedging activities. Natural gas liquids prices are expected to be about 55% - 65% of the average NYMEX oil price. The Company's realized oil prices should be about $1.75 to $2.25 below the average NYMEX price, assuming a $33.00 per Bbl oil price and before consideration of hedging activities. Hedging The Company's hedging positions for natural gas and oil are summarized below: FUTURES CONTRACTS Mcf/Bbls NYMEX HEDGING PERIOD per Day Price Base Production: NATURAL GAS July-Dec 2004 400,000 $ 4.77 Jan-Dec 2005 100,000 $ 5.21 Acquisition-Related Production: NATURAL GAS July-Dec 2004 50,000 $ 6.34 Jan-Dec 2005 50,000 $ 6.34 OIL July-Dec 2004 10,000 $ 35.91 Jan-Dec 2005 10,000 $ 35.91 Expenses The following table presents the Company's expected expenses per Mcfe for the remainder of 2004 assuming a $5.50 per Mcf NYMEX gas price and a $33.00 per Bbl NYMEX oil price: Expense ($/Mcfe) Q3 Q4 Production $0.66 $0.68 Taxes, transportation and other 0.44 0.44 Exploration 0.03 0.03 Depreciation, depletion and amortization 1.11 1.13 Accretion of asset retirement obligation 0.02 0.02 General and administrative (A) 0.18 0.18 Interest 0.27 0.28 (A) Excludes stock-based incentive compensation Income Tax For the remainder of the year, the Company has a 38.5% effective tax rate, of which up to one quarter is expected to be currently payable. In 2005, the Company expects a 36%-37% effective tax rate. XTO Energy Inc. is a premier domestic natural gas and oil producer engaged in the acquisition, exploitation and development of quality, long-lived producing properties in the United States. Its legacy 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 average daily production, 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, failure or inability to close announced property acquisitions, the availability of and cost of obtaining drilling equipment and steel supplies, delays in completing gas treatment facilities and higher than expected production costs and other expenses. 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 & CFO, or Gary D. Simpson, Vice President - Investor Relations, both of XTO Energy Inc., +1-817-870-2800 Web site: http://www.xtoenergy.com/

Copyright