XTO continues to add production; earnings flat with 2001 period
Petroleum News Alaska Staff
XTO Energy Inc. continued to boost its gas production in the first quarter.
After adjustments, the company nearly reached the earnings level of the same period a year ago, though derivatives and accounting changes hurt the results in that quarter.
The Fort Worth, Texas, company reported profits of $45.1 million for the first quarter of this year, down just slightly from $46.7 million a year ago and up a bit from $41.2 million in the fourth quarter of 2001.
But before adjusting for derivatives, accounting changes and incentive payments, the 2001 quarter showed earnings of $91 million, nearly double the adjusted total of $49 million for the current reporting period.
XTO uses extensive hedging to cushion the rise and fall of gas prices. So while many other companies got somewhere in the $2 range for their gas, XTO averaged $3.58 per thousand cubic feet during the quarter. That was still down 40 percent from the 2001 period.
Gas flow increased by 21 percent to 464 million cubic feet daily in the first quarter, and XTO is predicting the company will bring that number up to 490 million or more in the second quarter, and 515 million in the second half of the year. Nearly all of that has been hedged at prices in excess of $3.59 per thousand cubic feet.
Liquids production declined 3 percent, however, to 13,212 barrels daily.
Revenues were $180 million in the quarter, down 28 percent compared with a year earlier. Fourth-quarter revenues were $183.3 million.
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