XTO Energy Announces Record Production and Cash Flow in Third Quarter.

FORT WORTH, Texas, Oct. 23 /PRNewswire-FirstCall/ -- XTO Energy Inc. today reported record third quarter 2007 production of 1.928 billion cubic feet equivalent (Bcfe) per day, up 24% from the third quarter 2006 level of 1.553 Bcfe per day, and up 14% sequentially from 1.698 Bcfe per day in second quarter 2007. Total revenues for the third quarter were $1.42 billion, a 30% increase from $1.10 billion the prior year. Earnings for the quarter reached $412 million, or $1.07 per share ($1.05 diluted), a 12% increase from third quarter 2006 earnings of $367 million, or $1.00 per share (99 cents diluted). After adjusting for the after-tax effects of a derivative fair value loss, adjusted earnings for third quarter 2007 were $416 million, or $1.08 per share ($1.06 diluted). Third quarter 2006 adjusted earnings were $349 million, or 95 cents per share (94 cents diluted).(1)

Operating income for the quarter was $707 million, a 14% increase from third quarter 2006 operating income of $620 million. Operating cash flow, defined as cash provided by operations, before changes in operating assets and liabilities, exploration expense and significant cash flow effects of earnings adjustments, was $916 million, up 31% from 2006 third quarter comparable operating cash flow of $701 million.(1)

Third quarter daily gas production averaged 1.561 Bcf, up 29% from third quarter 2006 daily production of 1.213 Bcf. Daily oil production for the third quarter was 47,603 barrels, a 7% increase from the third quarter 2006 level of 44,438 barrels. During the quarter, natural gas liquids production was 13,674 barrels per day, a 12% increase from the prior year quarter rate of 12,198 barrels per day.

"We are proud to announce another outstanding quarter of performance, both operationally and financially, for XTO Energy," stated Bob R. Simpson, Chairman and Chief Executive Officer. "In the operations arena, production volumes achieved a new record, beating the high end of guidance by 3%. Considering our drilling and acquisition success, we are boosting our production growth target for 2007 to 18%, up from 17%, and our production growth for 2008 is now targeted to increase 17%, up from the initial goal of 15%. In addition, we have completed our 2007 stated goal of acquiring $1 billion in additional bolt-on properties. These premier producing assets provide immediate growth and low-risk development inventory for the future. All in all, the discipline and effectiveness of the Company's capital investment program continues to drive value creation for our shareholders."

Keith A. Hutton, President, further commented, "Our balanced strategy for volume growth continues to deliver solid results as production increased by 14% over the previous quarter, with growth in each operating district. In the Eastern Region, net production grew to 691 MMcfe per day, up 9% from the second quarter. The gross average daily rate in the Freestone Trend reached 626 MMcfe. Barnett Shale net production reached another milestone at 341 MMcfe per day, a gain of 10% from last quarter. In the San Juan and Permian regions, daily production increased by 29% and 18% respectively, as acquired properties were merged into operations and drilling activities in South Texas spurred excellent well results. Going forward, our development

program will…