Thursday, August 6, 2009

XTO: 2009 CapEx to Increase

XTO Energy reported its second quarter earnings this week. Not a lot of specifics about particular wells, but the company did have some good news concerning the Haynesville Shale. The company’s overall 2009 capital budget for development and exploration has increased from $2.75 billion to $3.1 billion and a good part of that $350 million increase is going to the Haynesville Shale. As a result, XTO’s rig count will increase from three to five (one was added recently and another will be added around September). Also, the number of wells the company plans to drill this year increases from 15-20 to 27-28.

XTO, which has 100,000 acres in the play, reported that the economics in the Haynesville Shale are still attractive. Additionally, the company reported that it is seeing operational efficiencies in the play as it drills more wells.

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