XTO projects double-digit growth in 2004
Ray Tyson Petroleum News Houston Correspondent
Exploration and production independent XTO Energy, registering its 14th consecutive year of production growth in 2003, is looking to repeat in 2004 with anticipated increases of at least 16 to 18 percent, depending on commodity prices and production gains from future acquisitions.
The deal-minded company also left no doubt in a Feb. 11 conference call on 2003 fourth-quarter earnings that XTO intends to do more of the same this year. “We think now is just a good time to buy as any, or better,” said Bob Simpson, XTO’s chief executive officer.
XTO posted a fourth-quarter profit of $61.9 million or 33 cents per share versus a profit of $56.1 million or 33 cents per share. Excluding special items, the company’s earnings were $90.6 million or 49 cents per share in the final quarter of last year.
Compared to 2002, output during 2003 for the predominantly natural gas producer surged 30 percent to 668 million cubic feet per day. Fourth-quarter gas production alone averaged a record 738 million cubic feet, up 34 percent versus the same period a year earlier.
XTO’s triple-digit performance last year was fueled by $625 million in Lower 48 acquisitions, and the company intends to do at least an additional $400 million in deals during the balance of this year.
“We are looking at a lot of stuff today,” Simpson said, adding that XTO likely would exceed $400 million in property purchases during the remaining months of the year “if the acquisition is correct.”
XTO began this year with $249 million worth of property acquisitions, primarily in core producing areas in East Texas and northern Louisiana. Earlier the company announced a $1.5 million capital budget for 2004 and that it had reserves totaling 4.1 trillion cubic feet of gas equivalent.
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