DOW JONES NEWSWIRES
XTO Energy Inc.'s (XTO) first-quarter earnings rose 4.5%,
beating analysts' estimates, amid higher-than-expected production
volume.
The energy producer also raised its 2009 production growth
target to 16% from as much as 14%, helping shares rise 5.5% to $40
in recent premarket trading.
Many oil and gas companies have seen profits decline as prices
tumbled from their peaks last summer, prompting many to curtail
output. But some, including XTO, continue to push their growth
objectives. The company expanded aggressively last year through a
series of acquisitions, culminating in its $4.2 billion purchase of
closely held Hunt Petroleum.
The growth was partly funded by added debt, and Chairman Bob R.
Simpson on Wednesday said the company has reduced its debt by about
$1.9 billion.
XTO reported a profit of $486 million, up from $465 million a
year earlier. But per-share earnings fell to 83 cents from 92 cents
on an increase in shares outstanding amid its acquisition spree.
Excluding items, including $79 million write-down on derivatives in
the latest quarter, earnings rose to 91 cents from 90 cents.
Revenue increased 29% to $2.16 billion on a similar-sized jump
in output.
Analysts polled by Thomson Reuters most recently were looking
for earnings of 77 cents on revenue of $2.12 billion.
Average daily gas production rose 30%, though average prices
fell 6%. Oil production was up 27% and average prices gained 30% on
hedging.
-By Tess Stynes, Dow Jones Newswires; 201-938-2473;
tess.stynes@dowjones.com