EXHIBIT 99.1

[XTO Logo Here]

NEWS RELEASE

For Immediate Release

Number: 04-35

XTO ENERGY ANNOUNCES RECORD PRODUCTION, EARNINGS AND

CASH FLOW IN THIRD QUARTER

FORT WORTH, TX (October 20, 2004) – XTO Energy Inc. (NYSE-XTO) today reported record natural gas production of 847 million cubic feet (MMcf) per day, a 19% increase from the third quarter 2003 level of 711 MMcf per day. Natural gas production during the quarter would have averaged approximately 16 MMcf per day higher if not limited by pipeline curtailment from third-party gas purchasers. The Company also reported record oil production of 25,984 barrels per day, a 105% increase from third quarter 2003 production of 12,692 barrels per day. Natural gas liquids production totaled 7,070 barrels per day, a 9% decrease from third quarter 2003 production of 7,761 barrels per day.

Earnings for the quarter were a record $140.8 million, or 54 cents per share, compared with third quarter 2003 earnings of $102.8 million, or 45 cents per share. Third quarter 2004 earnings include $9.9 million of after-tax stock-based incentive compensation, related primarily to vesting of cash-equivalent performance shares, and a $300,000 after-tax derivative fair value loss. Excluding these items, the Company’s earnings were $151 million, or 58 cents per share, compared to third quarter 2003 adjusted earnings of $90.8 million, or 40 cents per share. Operating cash flow, defined as cash provided by operations, before changes in operating assets and liabilities and exploration expense, was a record $333.7 million, up 57% from 2003 third quarter comparable operating cash flow of $212.9 million. See the last page of this release for further explanation and reconciliation of these non-GAAP financial measures.

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XTO Energy Announces Record Production, Earnings and Cash Flow in Third Quarter

“We have built a model of consistent growth by combining quality acquisitions of long-lived producing properties with a low-risk development program that discovers new production and new reserves. This formula has delivered exceptional results and we are proud to report another quarter of record-level operational and financial performance,” stated Bob R. Simpson, Chairman and Chief Executive Officer. “Even more important, the stage is set for our current property base to grow production at more than 28% this year and 18% to 20% in 2005. Our technical teams continue to expand the largest drilling inventory in the Company’s history. We are increasing our production base with coal bed methane, shale gas and oil development projects. Bolt-on acquisitions will continue to add opportunities in our core basins. Finally, favorable commodity prices are driving outstanding economic returns and providing unprecedented cash flows for disciplined reinvestment. Putting this all into perspective, we believe the best years lie ahead for XTO Energy.”

“In terms of our operational success, we expect to continue to deliver strong drilling results as we implement our future growth programs,” noted Steffen E. Palko, Vice Chairman and President. “Performance from new wells continues to meet or exceed expectations despite the curtailment challenges from gas purchasers during the quarter. We are nearing completion of significant pipeline infrastructure enhancements in our Freestone Trend which are expected to broadly expand our producing capacity in the trend by more than 60% — from 450 million cubic feet per day to 730 million cubic feet per day. Furthermore, the full benefits of our 2004 acquisitions will be realized in the upcoming fourth quarter.”

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XTO Energy Announces Record Production, Earnings and Cash Flow in Third Quarter

Total revenues for the third quarter were $507.4 million, 58% above third quarter 2003 revenues of $322.1 million. Operating income for the quarter was $251.7 million, a 57% increase from third quarter 2003 operating income of $159.9 million.

The average gas price for the third quarter increased 20% to $5.02 per thousand cubic feet (Mcf) from $4.19 per Mcf in third quarter 2003. The third quarter average oil price was $38.58 per barrel, a 35% increase from last year’s third quarter average price of $28.48. Natural gas liquids prices averaged $27.95 per barrel for the quarter, 52% higher than the 2003 quarter average price of $18.38.

For the first nine months of 2004, the Company reported earnings of $334 million or $1.36 per share, compared with earnings of $226.4 million or $1.02 per share for the same 2003 period. Year-to-date 2004 earnings include the effects of a derivative fair value loss, stock-based incentive compensation and a special one-time bonus paid in second quarter 2004. Excluding these items, year-to-date 2004 earnings were $404.7 million, or $1.64 per share compared to year-to-date 2003 adjusted earnings of $231.7 million, or $1.04 per share. Operating cash flow was $884.1 million for the first nine months of 2004, compared with $560.8 million for the 2003 period. See the last page of this release for further explanation and reconciliation of these non-GAAP financial measures. Total revenues for the first nine months of 2004 were $1.3 billion, a 57% increase from revenues of $857.7 million for the same 2003 period. Year-to-date operating income was $608.5 million, a 57% increase from $387.9 million for the first nine months of 2003.

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XTO Energy Announces Record Production, Earnings and Cash Flow in Third Quarter

XTO Energy Inc. is a premier domestic natural gas producer engaged in the acquisition, exploitation and development of quality, long-lived gas and oil properties. The Company, whose predecessor companies were established in 1986, completed its initial public offering in May 1993. Its properties are concentrated in Texas, New Mexico, Arkansas, Oklahoma, Kansas, Wyoming, Colorado, Alaska, Utah and Louisiana.

Contact:	Louis G. Baldwin	Gary D. Simpson
	Executive Vice President & CFO	Vice President - Investor Relations
	XTO Energy Inc.	XTO Energy Inc.
	817/870-2800	817/870-2800

Statements made in this news release, including those relating to continued growth, production growth in 2004 and 2005, inventory of drilling sites, production base expansion, future acquisitions, commodity prices, drilling results, performance of new wells, timing and impact of completion of pipeline infrastructure and benefits of 2004 acquisitions are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates 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. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, ability to acquire properties that meet our objectives, the timing and extent of changes in oil and gas prices, changes in underlying demand for oil and gas, the timing and results of drilling activity, the availability of and cost of obtaining drilling equipment and steel supplies, delays in completing production, treatment and transportation facilities, higher than expected production costs and other expenses and longer than expected pipeline curtailments by third-parties. 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.

Company management will host a conference call at 4:00 p.m. (EDT) on Wednesday, October 20^th. The call may be accessed on our web site: http:// www.xtoenergy.com.

(table follows)

XTO ENERGY INC.

(in thousands, except production, per share and per unit data)	Three Months Ended September 30,						Nine Months Ended September 30,
(Unaudited)	2004			2003			2004			2003
Consolidated Income Statements
REVENUES
Gas and natural gas liquids	$	409,109		$	287,109		$	1,140,846		$	745,628
Oil and condensate		92,215			33,253			192,038			100,802
Gas gathering, processing and marketing		6,355			1,786			14,755			9,638
Other (a)		(249	)		(90	)		(696	)		1,633
Total Revenues		507,430			322,058			1,346,943			857,701
EXPENSES
Production		66,305			42,657			169,234			118,675
Taxes, transportation and other		43,111			28,511			117,934			76,345
Exploration (b)		2,939			51			5,609			865
Depreciation, depletion and amortization		106,662			76,437			281,587			204,220
Accretion of discount in asset retirement obligation		1,896			1,388			5,218			3,871
Gas gathering and processing		1,517			2,448			5,236			7,121
General and administrative (c)		32,725			12,928			146,706			50,653
Derivative fair value (gain) loss (d)		554			(2,223	)		6,916			8,009
Total Expenses		255,709			162,197			738,440			469,759
OPERATING INCOME		251,721			159,861			608,503			387,942
OTHER INCOME (EXPENSE)
Gain on distribution of royalty trust units (e)		—			16,216			—			16,216
Loss on extinguishment of debt		—			—			—			(9,601	)
Interest expense, net (f)		(23,292	)		(16,448	)		(65,171	)		(47,235	)
Total Other Income (Expense)		(23,292	)		(232	)		(65,171	)		(40,620	)
INCOME BEFORE INCOME TAX AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE		228,429			159,629			543,332			347,322
INCOME TAX
Current		6,584			3,600			21,550			9,964
Deferred		81,063			53,223			187,775			112,765
Total Income Tax Expense		87,647			56,823			209,325			122,729
NET INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE		140,782			102,806			334,007			224,593
Cumulative effect of accounting change, net of tax (g)		—			—			—			1,778
NET INCOME	$	140,782		$	102,806		$	334,007		$	226,371
EARNINGS PER COMMON SHARE
Basic	$	0.54		$	0.45		$	1.36		$	1.02
Diluted	$	0.54		$	0.44		$	1.35		$	1.00
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic		258,961			229,740			246,101			222,281
Diluted		261,324			232,878			248,319			225,367
Average Daily Production
Gas (Mcf)		846,686			711,067			807,264			644,975
Natural Gas Liquids (Bbls)		7,070			7,761			7,100			6,442
Oil (Bbls)		25,984			12,692			19,071			12,975
Average Sales Prices (h)
Gas (per Mcf)	$	5.02		$	4.19		$	4.94		$	4.04
Natural Gas Liquids (per Bbl)	$	27.95		$	18.38		$	24.56		$	19.72
Oil (per Bbl)	$	38.58		$	28.48		$	36.75		$	28.46

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XTO ENERGY INC. (continued)

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands) (Unaudited)	2004			2003			2004			2003
Consolidated Statement of Cash Flows Data
Net Income	$	140,782		$	102,806		$	334,007		$	226,371
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		106,662			76,437			281,587			204,220
Accretion of discount in asset retirement obligation		1,896			1,388			5,218			3,871
Non-cash incentive compensation		488			9			64,311			11,224
Deferred income tax		81,063			53,223			187,775			112,765
Cumulative effect of accounting change, net of tax		—			—			—			(1,778	)
Non-cash derivative fair value (gain) loss		(22	)		(1,464	)		5,575			8,313
Loss on extinguishment of debt		—			—			—			9,601
Gain on distribution of royalty trust units		—			(16,216	)		—			(16,216	)
Other non-cash items		(130	)		(3,322	)		7			1,559
Changes in operating assets and liabilities		29,557			51,808			(20,666	)		39,741
Cash Provided by Operating Activities	$	360,296		$	264,669		$	857,814		$	599,671

	September 30, 2004		December 31, 2003
	(Unaudited)
Consolidated Balance Sheet Data
Cash	$	12,413	$	6,995
Current Assets	$	398,250	$	261,163
Less:
Derivative fair value (i)		19,354		11,351
Deferred income tax benefit (i)		62,671		32,455
Current Assets, excluding derivative fair value and deferred income tax benefit	$	316,225	$	217,357
Net Property and Equipment	$	5,321,361	$	3,312,067
Total Assets	$	5,772,194	$	3,611,134
Current Liabilities	$	533,465	$	320,557
Less - Derivative fair value (i)		190,670		96,653
Current Liabilities, excluding derivative fair value	$	342,795	$	223,904
Long-term Debt	$	2,001,642	$	1,252,000
Total Stockholders’ Equity	$	2,343,479	$	1,465,642
Add - Accumulated other comprehensive (gain) loss (i)		119,784		53,241
Total Stockholders’ Equity excluding accumulated other comprehensive loss	$	2,463,263	$	1,518,883

(continued)

XTO ENERGY INC. (continued)

(a) Includes a $1.7 million non-cash gain resulting from a reduction in contingent liabilities in the nine-month 2003 period.

(b) Primarily includes geological and geophysical costs.

(c) Includes stock-based incentive compensation of $15.7 million in the three-month and $86.6 million in the nine-month 2004 periods and $11.2 million in the nine-month 2003 period. Stock-based incentive compensation was not significant in the three-month 2003 period. Cash compensation related to cash-equivalent performance shares included in these amounts is $15.2 million in the three-month and $22.3 million in the nine-month 2004 periods.

The nine-month 2004 period also includes a special one-time bonus of $11.7 million relating to the Company’s $1.4 billion of acquisitions from ChevronTexaco and ExxonMobil announced during second quarter 2004.

(d) Reflects the change in fair value of derivative financial instruments not providing effective hedges.

(e) Gain upon distribution of Cross Timbers Royalty Trust units to common stockholders.

(f) Net of interest capitalized of $600,000 in the three-month and $1.9 million in the nine-month 2004 periods and $600,000 in the three-month and $1.8 million in the nine-month 2003 periods.

(g) Gain upon initial adoption of Statement of Financial Accounting Standards No. 143, Accounting for Asset Retirement Obligations, as of January 1, 2003.

(h) Average sales prices include realized gains and losses on hedge derivatives.

(i) These adjustments are made to current assets, current liabilities and stockholders’ equity because these items are recorded based on estimated derivative fair values and resulting unrealized gains and losses. Realized gains and losses will be based on commodity prices when related future production occurs. Net assets and equity to be recorded when future production occurs are not included in the balance sheet.

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XTO ENERGY INC. (continued)

Non-GAAP Financial Measures

Adjusted Earnings

Adjusted earnings, a non-GAAP financial measure, excludes certain items that management believes affect the comparability of operating results. The Company discloses adjusted earnings as a useful adjunct to GAAP net income because:

• Management uses adjusted earnings to evaluate the Company’s operational trends and performance relative to other oil and gas producing companies.

• Adjusted earnings are reflected on a basis more comparable to earnings estimates provided by securities analysts.

• Items excluded generally are one-time items, or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the Company generally excludes information regarding these types of items.

The following reconciles GAAP net income to adjusted earnings:

(in thousands)	Three Months Ended September 30,					Nine Months Ended September 30,
(Unaudited)	2004		2003			2004		2003
Net income	$	140,782	$	102,806		$	334,007	$	226,371
Adjustments, net of tax:
Stock-based incentive compensation		9,859		6			54,558		7,296
Non-cash contingency gain		—		—			—		(1,137	)
Derivative fair value (gain) loss		349		(1,445	)		4,357		5,206
Gain on distribution of royalty trust units		—		(10,540	)		—		(10,540	)
Loss on extinguishment of debt		—		—			—		6,241
Cumulative effect of accounting change		—		—			—		(1,778	)
Special acquisition-related bonus (nondeductible for tax)		—		—			11,734		—
Adjusted earnings	$	150,990	$	90,827		$	404,656	$	231,659
Adjusted earnings – basic	$	0.58	$	0.40		$	1.64	$	1.04

Operating Cash Flow

Operating cash flow, a non-GAAP financial measure, is defined as cash provided by operating activities before changes in operating assets and liabilities and exploration expense. Because changes in operating assets and liabilities and exploration expense are excluded, this cash flow statistic is different from cash provided by operating activities, as disclosed under GAAP. Management believes operating cash flow is a better liquidity indicator for oil and gas producers because of the adjustments made to cash provided by operating activities, explained as follows:

• Adjustment for changes in operating assets and liabilities eliminates fluctuations primarily related to the timing of cash receipts and disbursements, which can vary from period-to-period because of conditions the Company cannot control (for example, the day of the week on which the last day of the period falls), and results in attributing cash flow to operations of the period that provided the cash flow.

• Adjustment for exploration expense is to provide an amount comparable to operating cash flow for full cost companies and to eliminate the effect of a discretionary expenditure that is part of the Company’s capital budget.

Management uses operating cash flow not only for measuring the Company’s cash flow and liquidity, but also in evaluating the Company against other oil and gas producing companies and valuing potential producing property acquisitions.

The following reconciles cash provided by operating activities, the GAAP cash flow statistic, to operating cash flow:

(in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
(Unaudited)	2004			2003			2004		2003
Cash Provided by Operating Activities	$	360,296		$	264,669		$	857,814	$	599,671
Changes in operating assets and liabilities		(29,557	)		(51,808	)		20,666		(39,741	)
Exploration expense		2,939			51			5,609		865
Operating Cash Flow	$	333,678		$	212,912		$	884,089	$	560,795

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