XTO Energy Inc., Fort Worth, Texas, (NYSE: XTO) plans to acquire Barnett shale core properties from an undisclosed seller for approximately $800 million and additional producing properties in its Eastern and San Juan regions and acreage positions in the Marcellus, Fayetteville, Barnett and Haynesville shales from multiple undisclosed sellers for approximately $1.3 billion.

The Barnett acquisition assets include 12,900 net acres adjacent to XTO's existing operations. Estimated proved reserves are 300 billion cubic feet of equivalent (25% proved developed), according to XTO. Current production is 35 million cubic feet equivalent per day.

XTO chairman and chief executive Bob R. Simpson says, “XTO's position in the core of the Barnett shale has provided confident production growth, increasing resource potential and value creation for our shareholders. These properties are located right in the heart of our operations and provide for more of the same.”

He anticipates ultimate recovery from these assets to be more than 1 trillion cubic feet over time.

Keith A. Hutton, XTO president, says the company’s overall position in the Barnett now includes about 280,000 net acres with approximately 55%, or 155,000 acres, in the core. “This bolt-on acquisition is perfectly situated in the fairway of our ongoing development in the core,” he says.

The effective date is July 1. XTO will fund the deal through equity, long-term senior notes and commercial paper. The deal is scheduled to close in early October.

Of the acquisitions in XTO’s Eastern and San Juan regions including acreage positions in the Marcellus, Fayetteville, Barnett and Haynesville shales, $1 billion worth closed during the second quarter. From the producing properties, XTO estimates proved reserves to be 185 billion cubic feet equivalent (60% proved developed). Production is 20 million cubic feet equivalent per day. The deal involves more than 280,000 net undeveloped acres, primarily in the Marcellus and Fayetteville plays.

Simpson says, “With the transactions announced today, including our Barnett shale acquisition, XTO has now committed to a total of $10.6 billion in (asset purchases) this year which complement and expand our operated positions across the nation. Through diligence, discipline and hundreds of transactions, we are acquiring the equivalent of a very high-grade, unique company.

“This handcrafted company contributes a portfolio of properties in our legacy basins and adds expansive undeveloped acreage in all the premier emerging shale plays. As a result, the new XTO is a better franchise with more growth firepower for the future."

In 2008 the company has aggregated 1.4 million net undeveloped acres in resource basins where XTO has identified potential for long-term growth, representing more than 2.3 trillion cubic feet equivalent of proven reserves today and another 6- to 8 trillion in upside, Hutton says.

XTO Energy operates in Texas, New Mexico, Arkansas, Oklahoma, Kansas, Wyoming, Colorado, Alaska, Utah, Louisiana, Mississippi, Montana, North Dakota, Pennsylvania and West Virginia.