XTO Energy Q3 Profit Falls 4%, but Beats View (XTO)

Created by Dividend.com

Natural gas producer XTO Energy Inc. (XTO) on Wednesday posted better-than-expected third quarter profit, helped by larger revenue amid higher production.

The Fort Worth-based company reported third quarter net income of $500 million, or 86 cents per share, compared with $521 million, or 95 cents per share, in the same quarter last year. Excluding one-time items, adjusted profit was 88 cents per share.

Revenue rose 8% from the year-ago period to $2.29 billion, bolstered by a 23% rise in production.

On average, Wall Street analysts expected a lower profit of 84 cents per share, on smaller revenue of $2.22 billion.

The company boosted its full-year production growth target to 23% from a prior 20%, praising its “low-cost drilling inventory.” XTO shares rose 79 cents, or +1.9%, in morning trading Wednesday.

The Bottom Line
We recently removed shares of XTO from our “recommended” list back on May 23, when the stock was trading at $42.70. The stock has technical support in the $37-$40 price area. If the shares can firm up, we see overhead resistance around the $46 price level. We would remain on the sidelines for now.

XTO Energy Inc. (XTO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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