(RTTNews) - Oil and gas producer XTO Energy Inc. (XTO: News ) reported Wednesday a decline in third-quarter profit, reflecting lower average selling prices, despite strong growth in revenues and production. Quarterly adjusted earnings per share fell from last year, yet topped the market projections, with revenue also beating Street view. Further, the Fort Worth, Texas-based company provided fourth-quarter production forecast, and also lifted its targeted annual production growth for 2009.

Third-quarter net income dropped 4% to $500 million or $0.86 per share from prior year's $521 million or $0.94 per share. The latest quarter results included $9 million non-cash derivative fair value loss, compared to prior year's loss of $24 million.

Excluding the derivative loss, adjusted earnings were $509 million or $0.87 per share, compared to $545 million or $0.98 per share in the prior year quarter.

On average, 29 analysts polled by Thomson Reuters expected the company to report earnings of $0.84 per share. Analysts' estimates typically exclude special items.

Total revenues grew 8% to $2.29 billion from $2.13 billion in the same quarter a year ago, and beat seventeen Wall Street analysts' consensus estimate of $2.23 billion. In the quarter, revenues from gas and natural gas liquids rose to $1.61 billion from prior year's $1.59 billion, and Oil and condensate revenues grew to $654 million from $495 million a year ago.
The company's total equivalent production was 2.95 billion cubic feet equivalent, or Bcfe, per day in the quarter, up 23% from last year's production of 2.39 Bcfe per day, and up 2% from 2.89 Bcfe per day in the second quarter 2009. Third-quarter daily gas production averaged 2.42 Bcf, up 24% from production of 1.95 Bcf a year ago. Daily oil production for the quarter was 65,822 barrels, a 14% increase from prior year's 57,637 barrels. Natural gas liquids production climbed 42% to 22,010 barrels per day from the prior year quarter rate of 15,517 barrels per day.

In the third quarter, average sales price of natural gas equivalents fell to $8.33 per thousand cubic feet equivalent, or Mcfe, from prior year's $9.47 per Mcfe. The average realized gas price decreased 18% to $6.93 per thousand cubic feet, or Mcf, from $8.42 per Mcf a year ago. Natural gas liquids prices averaged $30.59 per barrel for the quarter, 43% lower than the 2008 quarter average price of $53.65. Average oil price was $108.04 per barrel, up 16% from last year's average price of $93.40.

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