XTO Energy income falls 4 percent as production jumps 23 percent

XTO Energy Inc. reported net income of $500 million, or $0.86 per share, for its third quarter 2009 results, a 4 percent decline from the same three-month period last year, and record production of 2.95 billion cubic feet equivalent per day.

The Fort Worth company’s quarterly production was a 23 percent jump from third quarter 2008 and a 2 percent increase from second quarter 2009, according to the Nov. 4 results.

The average realized gas price for the third quarter fell 18 percent to $6.93 per thousand cubic feet from $8.42 per Mcf in third quarter 2008. Natural gas liquids prices averaged $30.59 per barrel for the quarter, 43 percent lower than the 2008 quarter average price of $53.65. The third quarter average oil price was 16 percent higher than the previous year’s price, to $108.04 per barrel, up from 2008’s $93.40.

XTO Energy is maintaining Barnett Shale production flat at about 610 million cubic feet equivalent per day with nine rigs running, said CEO Keith Hutton. Fayetteville Shale production is more than 100 MMcfe; Haynesville Shale production is expected to reach at least 60 MMcfe by the end of the year.

The company’s annual production growth target was raised to 23 percent.

“Looking towards 2010, with about 55 percent of our anticipated production already hedged at $9.62 per Mcfe,” said Bob R. Simpson, chairman and founder, “we expect to deliver another year of strong financial returns and substantial free cash flow, while generating double-digit production growth.”

 jtronche@bizpress.net