|
XTO earnings dip 17 percent in quarter; profits for year up 116 percent Decline small compared to other companies; XTO did well because of increased gas flow, higher than spot market prices because it hedged its gas production Allen Baker PNA Contributing Writer
XTO Energy Inc. posted earnings of $41.2 million for the fourth quarter, down just 17 percent from the same period a year ago. Most of the industry showed much bigger declines, but XTO prospered due to 24 percent higher gas production and hedging much of its gas production so it received higher than spot market prices.
XTO, based in Fort Worth, is the former Cross Timbers. The company has two producing platforms in Cook Inlet purchased from Shell in 1998.
For the year, XTO had profits of $248.8 million, up 116 percent from the 2000 figure, with cash flow up 59 percent to $549.6 million. Gas production up 24 percent In the fourth quarter, XTO boosted gas production to a record 455 million cubic fee daily, 24 percent higher than the 366 million cubic feet a day in the same quarter in 2000 with drilling activity in East Texas and the Arkoma and San Juan basins. The company is projecting an average flow of 480 million cubic feet or more daily in the current year. Oil production was 13,761 daily barrels, up 7 percent from a year earlier.
XTO also pumped 4,567 barrels of natural gas liquids a day, roughly the same as the figure for the 2000 quarter. Revenues up 40 percent in 2001 Like the rest of the industry, XTO got lower prices for its products, with gas bringing an average of $3.67 per thousand cubic feet, down 20 percent from $4.56 a year earlier, but hedging activities helped. The company has a guaranteed price of $3.88 per thousand cubic feet for 80 percent of its expected gas production in 2002.
Oil averaged $17.97 per barrel in the fourth quarter, down 39 percent from $29.63. Gas liquids showed the biggest drop, to $9.85 per barrel from $22.82.
Total revenues for the quarter were down 11 percent to $183.3 million. For the year, revenues rose 40 percent to $838.7 million.
|
