XTO reduces 2009 development budget

XTO Energy Inc. approved a revised 2009 capital budget for development and exploration expenditures of $2.75 billion.

By OGJ editors
HOUSTON, Feb. 4 -- XTO Energy Inc. approved a revised 2009 capital budget for development and exploration expenditures of $2.75 billion. An additional $450 million has been budgeted for the construction of pipeline, compression, and processing facilities.

This compares with its earlier budget of $3.3 billion for development and exploration and $500 million for pipeline, compression, and processing facilities. The company now plans to increase 2009 production volumes by 14% over 2008 levels.

"With our 14% growth projections, free cash flow is expected to exceed $2 billion. As drilling activity across the industry collapses, we will concentrate on managing falling costs to maximize returns and unit margins," said Keith A. Hutton, chief executive officer. "Operationally, our team will focus on the full integration and optimization of our 2008 acquisitions, while utilizing an average of 65 drilling rigs in the field."

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