XTO Energy Inc. Q3 2009 Earnings Call Transcript

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2009-11-04 14:14:07.0

Tags: Call Transcript, Earnings, Simmons & Co., XTO Energy Inc., Financial Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from David Chrysler - Simmons & Co.

David Chrysler - Simmons & Co.

Real quickly, kind of last quarter you guys talked a little bit about the likelihood of experiencing some involuntary curtailments. Could you just talk a little bit about whether that happened and how that impacted kind of the growth outlook for the balance of this year?

Keith Hutton

We had a little bit of it not as material as we thought it might be, we’re guiding to the four quarter, obviously our rigs down a little bit, but we’re also thinking that we may have some of that going forward. We’ve seen a little this quarter. It is not big numbers, but its there is a chance that happens, but again, a lot of our we probably had, the majority of our overrun was the fact that we had no shut-ins as well plus our wells were a lot better than what we actually forecast.

David Chrysler - Simmons & Co.

Kind of adding to that or thinking about that going forward, you mentioned having a little bit of backlog of drilled uncompleted wells. You can talk about your thought process for completing those, kind of over the next, I don’t know, couple quarters, obviously it is a present value exercise, but just your general thoughts there.

Keith Hutton

Yes you probably step on it next year, as you think prices are coming back and it is not a huge number of wells. It is mainly in the Barnett. Basically, because we didn’t we are already going out our production numbers as it is.

David Chrysler - Simmons & Co.

Then just lastly, you mentioned that you’re kind of moving to a development stage in the Fayetteville. You can talk a little bit about how much of that acreage is held by production, and then while you mentioned going to a development stage. Are you still looking at maybe making around with extended laterals and at least from a development perspective? Can you give us an estimate of well costs, EURs and what not so we can kind of think about how we’d model that out?

Keith Hutton

I mean it takes us probably five or six rigs to hold our acreage position, over the next couple of years and so we are still expanding. We’re getting a lot of help from the other guys. They’re drilling in the sections that we’re not. So I don’t think we’ll have any big losses of acreage and it doesn’t take a tremendous amount of rigs to stay ahead of that.

 

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