IPAA Annual Meeting October 24, 2006

1. IPAA Annual MeetingOctober 24, 2006

2. Largest ‘Shale Gas Field’ in N. America WISE DENTON • ‘Unconventional’ resource play • Covers 14 counties • 5,130 producing wells • Producing +1.6 BCF/day (largest gas field in Texas) • 1.80 TCF of gas produced to date • Active drilling rigs +135 • Huge upside potential - 26 TCF (USGS Estimate) • Large resource – low recovery • 94% of current production from Core area • Take away capacity is expanding rapidly 1646 wells841 BCF 1827 wells687 BCF Core~ 94% of current production Viola Limit PARKER TARRANT DALLAS 248 wells27 BCF 710 wells281 BCF B’ Tier 1 Fort Worth Weatherford Tier 2Being tested HOOD JOHNSON 66 wells6 BCF 291 wells 89 BCF Gas in Place A’ Upside Cleburne SOMERVELL 1 well Ouachita Thrust Front HILL 1 well Low Risk BOSQUE 2 wells ERATH 11 wells 0.4 BCF 5% increase in Recovery Rate = 1.3 TCF 150’ Barnett 400’ Ellenburger Viola A’ B’ Frac barrier water bearing formation

4. 2000 2001 2002 2003 2004 2005 2006 GW Gas Mcf Daily Gas Mcf GW Gas Mcf Daily Gas Mcf 2000 2001 2002 2003 2004 2005 2006 88,313,852 107,781,001 129,261,630 164,551,830 174,850,993 171,649,106 92,873,926 2000 2001 2002 2003 2004 2005 2006 241,956 295,290 354,141 450,827 479,044 470,272 438,085 502,774 3,077,217 17,467,044 39,313,322 73,203,534 117,535,196 82,103,530 1,377 8,431 47,855 107,708 200,558 322,014 387,281 Wise Tarrant GW Gas Mcf Daily Gas Mcf 2000 2001 2002 2003 2004 2005 2006 0 36,014 108,485 25,466 20,666 4,586,507 6,477,878 0 99 297 70 57 12,566 30,566 Hood GW Gas Mcf Daily Gas Mcf 2000 2001 2002 2003 2004 2005 2006 0 0 0 283,941 11,641,831 62,061,801 67,524,412 0 0 0 778 31,895 170,032 318,511 Johnson GW Gas Mcf Daily Gas Mcf 28,101,693 56,632,338 104,278,803 126,982,266 142,082,817 151,547,612 86,851,767 76,991 155,157 285,695 347,897 389,268 415,199 409,678 Denton GW Gas Mcf Daily Gas Mcf 2000 2001 2002 2003 2004 2005 2006 321,101 432,023 967,636 1,711,247 6,158,786 15,621,070 14,006,729 880 1,184 2,651 4,688 16,873 42,797 66,069 Parker

5. Barnett Shale - Why the Explosive Growth? • 'Slickwater' fracturing (1997 - Mitchell Energy) • Completion costs reduced by 60 - 70% • Improved gas production • Horizontal drilling • Exposes the wellbore to more surface area • Better control of frac • Multiple wells from one pad • Avoids culture • Parks, lakes, houses • Higher gas prices • Increased pipeline takeaway capacity • Energy Transfer • Crosstex • Enterprise

6. Barnett ShaleHorizontal vs. Vertical Drilling Non-Core Core Non-Core Core Core • Verticals are good • 1.5 - 2.5 Bcf/well • Horizontals are better • 2.5 - 6.0 Bcf/well • Horizontals allow for less surface disturbance Non-Core • Verticals are okay • 500 - 750 MMcf/well • Horizontals are significantly better • 1.5 - 3.0 Bcf/well • Horizontals reduce the risk of breaking into water • Multiple stage fracturing ProductiveBarnett Shale ProductiveBarnett Shale Viola Viola Ellenburger Ellenburger Fracture Stimulation

7. A Hometown Growth Engine for XTO • Expecting more inventory • 50-acre spacing • 20-acre spacing • Re-frac volumes • Additional leasing Barnett Shale Trend Economic Projections Well Class Well Cost ($MM) Initial Rate(MMCFPD) Reserves(BCFE) ROR* ROI* PV-10*($MM) 1 2 1 2 2.5 2.5 1.6 1.6 4.0 2.5 1.5 1.0 4.0 – 5.0 2.5 – 3.0 2.0 1.5 100%+ 50%+ 60% 35% 7 - 9 4 - 5 5 4 7 - 9 3 - 4 2.6 1.5 Core Non- Core Low-risk inventory of 750 to 950 new wells Typical Production Profile Reserve life ~ 40 years 70% RATE (%) 1 year 25% 1.5 year 7% TIME (YR) * $8.00/Mcf NYMEX flat price, ROI is undiscounted

8. "Large" Independents Rule Barnett Shale

9. Devon EnergyBarnett Shale Overview • Net Acreage • Core: 127,000 acres • Non-Core: 540,000 acres • Far West: 66,000 acres • Total: 733,000 • Net Production: ~650 MMcfe/d • Producing wells: ~2,500 • 2005 activity: drilled 268 wells • 2006 plans: drill 385 wells • Acquisitions: • Mitchell Energy • Chief Production Source: Devon Energy

10. WISE DENTON JACK Core Viola Limit PARKER TARRANT DALLAS Tier 1 Fort Worth Weatherford HOOD JOHNSON Cleburne SOMERVELL Ouachita Thrust Front HILL BOSQUE Tier 2 XTO acreage XTO Energy: At Home in the Barnett Shale • Net acreage: 259,000 gross (~ 209,000 net) • 50%+ in the highly prolific Core area • 2nd largest producer at 300 MMCFPD gross (200 MMCFPD net) • Plan to drill 280 - 300 wells in 2007 (all horizontal) • Producing wells: • 160 vertical • ~275 horizontal • Seismic data coverage: • 552 mi2 of 3-D seismic acquired • 210mi2 in progress • Active drilling rigs: • 16 in CORE • 9 in Tier-1/Tier-2 • Acquisitions: • Four Sevens • Antero Resources • Peak Energy

11. Chesapeake EnergyBarnett Shale Overview • Fort Worth Barnett Shale • Established a top-3 position in less than 3 years • Now have ~180,000 net acres • Johnson • Tarrant • Dallas • Four Sevens/Sinclair acquisition and DFW airport lease further enhance CHK's strong position • ~2,400 potential net wells at 2.4 Bcfe/well on 55 acre spacing • 18-rig program now increasing to 31 rigs by Q1'07 Source: Chesapeake Energy

12. EOG ResourcesBarnett Shale Overview • Hold > 500,00 acres • All acreage in gas window • Recent 2006 production • 140 MMcf/d, net • 17 rigs running • 13 in Johnson County • 4 in Extension Counties • Plan 18 rigs year end 2006 • Targeted 2006 well count ~225 Source: EOG Resources

13. EnCana CorporationBarnett Shale Overview Resource Opportunity (Bcf) Statistics Gross Net Total acres (M) 243 205 Undeveloped acres (M) 206 174 Producing gas wells 501 447 as of 12/31/05 Source: EnCana Corp

15. ETC Expansion Projects

17. Statements concerning production growth, cash flow margins, finding costs, future gas prices, reserve potential and debt levels are forward-looking statements. Financial results are subject to audit by independent auditors. These statements are based on assumptions concerning commodity prices, drilling results, production, administrative costs and interest costs that management believes are reasonable based on currently available information; however, management’s assumptions and the Company’s future performance are both subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. In addition, acquisitions that meet the Company’s profitability, size and geographic and other criteria may not be available on economic terms. Further information on risks and uncertainties is available in the Company’s filings with the Securities and Exchange Commission, which are incorporated by this reference as though fully set forth herein. This presentation includes certain non-GAAP financial measures. Reconciliation and calculation schedules for the non-GAAP financial measures can be found on our website at www.xtoenergy.com. Reserve estimates and estimates of reserve potential or upside with respect to the pending acquisition were made by our internal engineers without review by an independent petroleum engineering firm. Data used to make these estimates were furnished by the seller and may not be as complete as that which is available for our owned properties. We believe our estimates of proved reserves comply with criteria provided under rules of the Securities and Exchange Commission. The Securities and Exchange Commission has generally permitted oil and gas companies, in their filings made with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation test to be economically and legally producible under existing economic and operating conditions. We use the terms reserve “potential” or “upside” or other descriptions of volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC’s guidelines may prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by the company.