XTO Xto Energy, Inc.

FORT WORTH, Texas, Feb. 19 /PRNewswire-FirstCall/ -- XTO Energy Inc. (NYSE:XTO) today announced that Miller and Lents, Ltd., independent petroleum engineers, estimate XTO's proved oil and gas reserves at December 31, 2008 to be a record 13.86 trillion cubic feet of gas equivalent (Tcfe), up 23% compared with 11.29 Tcfe at December 31, 2007. Natural gas reserves increased 25% to 11.80 Tcf, and natural gas combined with natural gas liquids of 76 million barrels equaled 88% of total reserves. Oil reserves increased 11% to 267 million barrels. Proved developed reserves accounted for 64% of total proved reserves on an equivalent basis. During 2008, XTO Energy added 3.43 Tcfe at a cost of $4.43 per thousand cubic feet of gas equivalent (Mcfe), replacing 401% of production. The Company's development program replaced 168% of production or 1.44 Tcfe at a cost of $4.15 per Mcfe. Including revisions and excluding unproved property additions from leasing activities, development costs were $2.70 per Mcfe. Excluding revisions and unproved property additions from leasing activities the Company replaced 267% of production or 2.28 Tcfe for development costs of $1.70 per Mcfe. In due respect of the changing guidelines of the Securities and Exchange Commission (SEC) reporting of reserves in 2009, the Company has recalculated the volumes and value of its 2008 proved reserves at a price base of $7.50 for natural gas and $75.00 for oil while using average basis differentials for the year. At these prices, we estimate XTO's proved oil and gas reserves at December 31, 2008 to be 14.66 trillion cubic feet of gas equivalent (Tcfe), up 30% compared with 11.29 Tcfe at December 31, 2007. Natural gas reserves increased 31% to 12.36 Tcf, and natural gas combined with natural gas liquids of 83 million barrels equaled 88% of total reserves. Oil reserves increased 25% to 302 million barrels. The present value of estimated future net cash flows before income taxes is $34.2 billion. (1) The prospective SEC case, which takes effect for year-end 2009, would have utilized $9.04 for natural gas and $101.65 for oil in the reserves evaluation. "As we embark in 2009, our direction is focused on a development campaign for the growth platforms we built through 2008," stated Keith A. Hutton, Chief Executive Officer. "We have dedicated $2.75 billion for projected growth of 14% and expect effective capital returns with development costs between $1.50 and $1.70. As industry and economic conditions change, we maintain flexibility to accelerate our value growth accordingly." XTO Energy Inc. is a domestic energy producer engaged in the acquisition, development and discovery of quality, long-lived oil and natural gas properties in the United States. (1) Present value of estimated future net cash flows before income tax is a non-GAAP financial measure. See the end of this release for further explanation and reconciliation of this measure. This release can be found at http://www.xtoenergy.com/. Statements made in this news release, including those relating to proved reserves, percentage of proved developed reserves, development costs, estimated future oil and gas prices and basis differentials, present value of estimated future net cash flows, budget expenditures in 2009, projected growth rate in 2009, capital returns, development costs and value growth 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 both 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, changes in interest rates, higher than expected drilling and production costs and other expenses and general market 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. XTO ENERGY INC. Proved Oil and Gas Reserves December 31, 2008 Natural (in millions) Gas Gas Liquids Oil (Mcf) (Bbls) (Bbls) Mcfe ------ ------- ------ ------ Proved Developed 7,290.3 52.5 205.0 8,835.4 Proved Undeveloped 4,512.6 23.3 62.5 5,027.0 ------- ---- ---- ------- Total Proved 11,802.9 75.8 267.5 13,862.4 ======== ==== ===== ======== Changes in Proved Reserves Natural (in millions) Gas Gas Liquids Oil (Mcf) (Bbls) (Bbls) Mcfe ----- ------- ------ ------ December 31, 2007 9,441.1 66.8 241.2 11,289.0 Revisions (a) (665.5) (9.4) (20.9) (847.3) Extensions and discoveries 2,195.7 4.2 10.4 2,283.3 Production (697.4) (5.7) (20.5) (854.7) Purchases in place 1,529.0 19.9 57.6 1,994.1 Sales in place - - (0.3) (2.0) ------- ------- ------- ------- December 31, 2008 11,802.9 75.8 267.5 13,862.4 ======== ==== ===== ======== (a) Includes downward price revisions of 545.8 Bcfe. Acquisition, Development and Exploration Costs Incurred During 2008 The following table summarizes costs incurred, whether such costs are capitalized or expensed for financial reporting purposes: (in millions) Acquisitions: Proved properties $ 7,935 Unproved properties - acquisitions of proved properties(a) 1,020 Unproved properties - other 2,094 Development (b) 3,355 Exploration (c) 517 Asset retirement obligation accrual 287 --- Total costs incurred $ 15,208 ============ (a) Represents a portion of the allocated purchase price of unproved properties acquired as part of the acquisition of proved properties. (b) Includes $39 million of capitalized interest. (c) Primarily includes exploratory drilling, geological and geophysical costs. Non-GAAP Financial Measures Present Value of Estimated Future Net Cash Flows Before Income Taxes We believe that the present value of estimated future net cash flows before income taxes is a useful supplemental disclosure to the standardized measure, or after-tax amount, of $23.5 billion. While the standardized measure is dependent on the unique tax situation of each company, the pre-tax discounted amount is based on prices and discount factors that are consistent for all companies. Because of this, the pre-tax discounted amount can be used within the industry and by securities analysts to evaluate estimated future net cash flows from proved reserves on a more comparable basis. The difference between the standardized measure and the pre-tax discounted amount is the discounted estimated future income tax of $10.7 billion. DATASOURCE: 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/

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