XTO sets new production record

U.S. natural gas producer XTO Energy saw its 2003 third-quarter production jump 33 percent from a year ago to a record 711 million cubic feet per day, while the company's net income more than doubled to $102.8 million or 56 cents per share.

The production increase was due primarily to development activity in East Texas and the Arkoma and San Juan basins, XTO said Oct. 21. Daily oil production for the quarter was 12,696 barrels, a 2 percent increase from the year-ago quarter. Daily output for natural gas liquids was 7,761 barrels, a 41 percent increase compared to the same period last year.

Because of its successful drilling program, XTO said it was revising its 2004 target for natural gas to 13 to 15 percent from 10 to 12 percent. “Furthermore, this growth is based on a conservative development program that is scheduling our production profile years ahead, instead of hustling for the next quarter,” said Steffen Palko, the company's vice chairman and president.

Total revenues for the 2003 third quarter were $322.1 million, a 60 percent increase from revenues of $201.7 million in the year-ago quarter. Operating income was $159.9 million, a 73 percent increase from $92.4 million in the year-ago period.