XTO Keeps Expanding with Acquisitions and Increased Production

XTO Energy (XTO) is one of the
more acquisitive companies in the natural gas space;<!----> they have
announced another meaningful one  - while increasing future production targets
(a very good thing) So we not only get higher prices in natural gas, but
we have the type of companies that can expand output; exactly what we
want to see. (Note: I still think commodities are overdue for a
pullback, but this is positive long term news)

• XTO Energy Inc. (XTO) announced today that the Company is increasing its 2008 production growth target to 28 - 30%
  based on recently announced agreements to acquire Hunt Petroleum
  Corporation and Bakken Shale producing properties from Headington Oil
  Company
• Based on volume projections for next year, the Company is also establishing an annual production growth target of 20% for 2009.
• In
  order to achieve this production growth, a preliminary 2009 development
  budget of $4.0 - $4.5 billion utilizing 110 to 120 operated drilling
  rigs is anticipated.
• "Given XTO's significant acquisitions and
  expanding shale basin presence, we have now assimilated the best
  property base for growth in the Company's history," stated Bob R.
  Simpson, Chairman and Chief Executive Officer.
• "With
  acquisitions and our planned development work, we are targeting a
  production volume increase in 2009 of about 450 million cubic feet
  equivalent above the average rate in 2008. This significant growth can
  be delivered with about 50% to 55% of the estimated cash flow at the
  current commodity price outlook."

• XTO Energy says it is acquiring privately held Hunt Petroleum Corp. for $4.19 billion in cash and stock.
• XTO Energy
  Inc. says the deal includes $2.6 billion in cash and 23.5 million
  shares of XTO stock. The stock portion of the deal is valued at about
  $1.6 billion, or $67.50 per share.
• Fort Worth, Texas-based XTO estimates Hunt's properties' proved reserves total about 1.052 trillion cubic feet of natural gas equivalent. About 70 percent of the properties are in East Texas, Central and Northern Louisiana.