Earnings Preivew: XTO Energy

Nov. 4.08 | About: XTO Energy (XTO)

XTO Energy (XTO) is expected to report Q3 earnings before market open Wednesday, November 5, with conference call scheduled for 10:00 am EST.


Analysts are expecting a profit of 98c on revenue of $2.07B. The consensus range for EPS is 82c to $1.17 with a revenue range of $1.99B to $2.15B, according to First Call. XTO outperformed its Q2 estimates when it reported last quarter, reporting Q2 EPS of $1.13 vs. a consensus of $1.05, and Q2 revenue of $1.94B vs. a consensus $1.85B. The company also announced that it expected to grow 2008 production volume by at least 29%, and that it increased its 2009 production target to 22% based on projected development activities and acquisitions already announced in 2008.

Analyst Views

Analysts views are mixed, as Oppenheimer upgraded XTO to Outperform from Perform as it sees upside potential significantly exceeding downside risk over the next 12 months, but Morgan Stanley expects lower commodity prices and tighter credit to impact earnings across the industry.