XTO Energy Stock Jumps On Strong Quarter

Shares of XTO Energy(XTO Quote) got a sharp boost Wednesday from earnings that exceeded expectations on increased production during the first quarter, as well as encouraging oil-inventory data from the Energy Department.

XTO stock was trading recently up 12% to $42.50 in afternoon trading Wednesday, on heavy volume.

Excluding items, XTO said adjusted earnings for the quarter came in at $531 million, or 91 cents per share. Analysts polled by Thomson Reuters were looking for EPS of 77 cents in the quarter.

One-time items in the just-ended period include $79 million in write-downs on the value of XTO's oil and gas properties. Including that charge, XTO earned $486 million, or 83 cents a share, compared with $465 million, or 92 cents a share a year earlier. The drop in EPS resulted from a larger number of shares outstanding in 2009.

Revenue, meanwhile, jumped 29% to $2.16 billion, up from $1.67 billion in the prior-year period and higher than analysts' targets of $2.12 billion.

The Fort Worth, Texas, oil and gas producer also hiked its growth forecasts for the year, saying it believes gas production in 2009 will increase 16% over 2009.

The company turned in the surprising results even as prices declined -- the average gas price in the first quarter fell 6% -- but the company offset those pressures with production volumes that ratcheted higher compared with the year-ago period. Oil drilling in shales was particularly strong, the company said.