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• Financials
• Form 10-K Table of Contents
• Part IV Exhibits and Financial Statement Schedules
• 15. 5. Consolidated Statements
• 15. 5. 1. Accounting Policies
• 15. 2. Party Transactions
• 15. 3. Debt
• 15. 4. Income Tax
• 15. 5. Retirement Obligations
• 15. 6. Commitments
• 15. 7. Financial Instruments
• 15. 8. Commodity Sales
• 15. 9. Equity
• 15. 10. Earnings Per Share
• 15. 11. Cash Flow
• 15. 12. Employee Benefit Plans
• 15. 13. Acquisitions
• 15. 14. Quarterly Financial Data
• 15. 15. Supplemental Financial Info

Part IV

Item 15.

Exhibits and Financial Statement Schedules

XTO ENERGY INC. Notes to Consolidated Financial Statements

11. Supplemental Cash Flow Information

The consolidated statements of cash flows exclude the following non-cash transactions:

• Distribution of 21.7 million Hugoton Royalty Trust units as a dividend to common stockholders in May 2006 (Note 9)
• Non-cash components of the June 2006 Peak Energy Resources acquisition purchase price, including issuance of 3.2 million shares of common stock and assumption of other liabilities (Note 13)
• Exchange of producing properties with ConocoPhillips in March 2005 and Occidental Petroleum in September 2005 (Note 13)
• Non-cash components of the April 2005 Antero Resources acquisition purchase price, including issuance of 16.7 million shares of common stock and warrants to purchase 2.6 million shares of common stock, and assumption of debt and other liabilities (Note 13)
• The following restricted share activity (Note 12):
• Grants of 1.4 million shares in 2007 and 1.3 million shares in 2006
• Vesting of 427,000 shares in 2007
• Forfeitures of 48,000 shares in 2007
• Grants and immediate vesting of unrestricted common shares to nonemployee directors totaling 25,000 shares in each of 2007 and 2006 and 23,000 shares in 2005 (Note 12)
• The following performance share activity (Note 12):
• Grants of 187,000 shares in 2006 and 518,000 shares in 2005
• Vesting of 166,000 shares in 2007, 201,000 shares in 2006 and 1.3 million shares in 2005
• Forfeitures of 15,000 shares in 2007

Interest payments totaled $231 million (including $30 million of capitalized interest) in 2007, $172 million (including $18 million of capitalized interest) in 2006 and $150 million (including $6 million of capitalized interest) in 2005. Net income tax payments were $284 million in 2007, $556 million in 2006 and $248 million in 2005.

Prior to January 1, 2006, we did not recognize compensation expense related to stock options granted and, therefore, the tax benefit realized upon exercise of these stock options has been recorded as an increase in additional paid-in capital. This tax benefit decreased our current income tax payable and, as reflected in our consolidated statements of cash flows, increased our cash provided by operating activities by $21 million in 2005. Upon adoption of SFAS 123R (Note 12), this tax benefit of $57 million for 2007 and $50 million for 2006 has been classified as cash provided by financing activities.