XTO Energy adds price hedges on gas, oil

Oil and gas producer XTO Energy said May 4 that it has added price hedges for future sales of natural gas and oil production through 2008.

A hedge is a way companies can reduce their risk relative to volatile commodities by setting a fixed price for future delivery.

The company now has 40 percent of its 2006 equivalent production hedges and 44 percent of its 2007 production.

For natural gas, the company has hedges ranging between $10.05 and $11.06 per thousand cubic feet, while its oil hedges range from $68.38 and $74.27 per barrel.

XTO CEO Bob Simpson said, “Given these robust price hedges, XTO has substantially secured our current plans of 11 percent to 12 percent production growth in 2006 and at least double-digit growth in 2007.”

—The Associated Press contributed to this report