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      XTO 0606 Compensation
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 20pt; FONT-FAMILY: Times New Roman"><strong>UNITED
        STATES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 20pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        AND EXCHANGE COMMISSION<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong>WASHINGTON,
        DC 20549</strong></font></div>
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        <div style="LINE-HEIGHT: 1.25">&#160;</div>
        <div style="LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 20pt; FONT-FAMILY: Times New Roman"><strong>FORM
          8-K</strong></font></div>
        <div style="LINE-HEIGHT: 1.25">&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
        <div style="LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;<strong>CURRENT
          REPORT PURSUANT</strong></font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>TO
        SECTION 13 OR 15(D) OF THE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        EXCHANGE ACT OF 1934</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Date
        of
        report (Date of earliest event reported<strong>):&#160; </strong><strong>May
        14<font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">,
        2006</font></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
        <div style="LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 20pt; FONT-FAMILY: Times New Roman"><strong>XTO
          ENERGY INC.</strong></font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Exact
        Name of Registrant as Specified in Its Charter)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
        <div style="LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong>Delaware</strong></font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(State
        or
        Other Jurisdiction of Incorporation)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 270pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table cellpadding="0" cellspacing="0" width="60%">

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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>1-10662</strong></font></div>
              </td>
              <td valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>75-2347769</strong></font></div>
              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Commission
                  File Number)</font></div>
              </td>
              <td valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(IRS
                  Employer Identification No.)</font></div>
              </td>
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              <td valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></td>
            </tr>
            <tr>
              <td valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><strong>810
                  Houston, Fort Worth, Texas</strong></div>
              </td>
              <td valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>76102</strong></font></div>
              </td>
            </tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Address
                  of Principal Executive Offices)</font></div>
              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Zip
                  Code)</font></div>
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        870-2800</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Registrant&#8217;s
        Telephone Number, Including Area Code)</font></div>
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        Name or Former Address, if Changed Since Last Report)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
        <div>&#160;</div>
        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Check
          the
          appropriate box below if the Form 8-K filing is intended to simultaneously
          satisfy the filing obligation of the registrant under any of the following
          provisions (<em>see </em>General Instruction A.2. below):</font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.45pt">&#160;&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Written
          communications pursuant to Rule 425 under the Securities Act (17 CFR
          230.425)</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Soliciting
          material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
          240.14a-12)</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Pre-commencement
          communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
          240.14d-2(b))</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;
          &#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Pre-commencement
          communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
          240.13e-4(c))</font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br><br>&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Item
            1.01.&#160;Entry into a Material Definitive
            Agreement.&#160;</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Amended
                  and Restated 2004 Stock Incentive Plan</u>. On May 16, 2006, the Company&#8217;s
                  stockholders approved the XTO Energy Inc. Amended and Restated
                  2004 Stock
                  Incentive Plan (&#8220;Amended 2004 Plan&#8221;) at the Annual Meeting of Stockholders. The
                  Amended 2004 Plan is the only stock incentive plan of the Company
                  under which
                  awards may be granted. The Amended 2004 Plan is nearly identical
                  in design to
                  the 2004 Stock Incentive Plan approved by the stockholders on November
                  16, 2004.
                  The following is a brief description of the material differences
                  in the terms
                  and administration of the Amended 2004 Plan:</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                      <tr valign="top" style="LINE-HEIGHT: 1.25">
                        <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#183;&#160;&#160;</font></td>
                        <td>
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                            number of shares available for grant was increased by
                            9,750,000.</font></div>
                        </td>
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                  <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                      <tr valign="top" style="LINE-HEIGHT: 1.25">
                        <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#183;&#160;&#160;</font></td>
                        <td>
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                            number of shares that can be granted as &#8220;full-value&#8221; awards, meaning
                            awards other than options, stock appreciation rights
                            (&#8220;SARs&#8221;) that are
                            settled in cash, and other than awards for which the
                            participant pays at
                            least the fair market value for the shares subject thereto,
                            has been
                            reduced from 12,000,000 to 2,500,000. Full-value awards
                            can be granted in
                            excess of this limit but will be counted three to one
                            against the
                            remaining available share pool.</font></div>
                        </td>
                      </tr>

                  </table>
                </div>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                      <tr valign="top" style="LINE-HEIGHT: 1.25">
                        <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#183;&#160;&#160;</font></td>
                        <td>
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                            Company has committed to keep the average annual run
                            rate or grant rate
                            for awards over the three-year period from 2006 through
                            2008 at or below
                            2.5% of the Company&#8217;s Common Stock outstanding at year-end for the
                            specified period. For purposes of calculating the number
                            of shares subject
                            to awards granted in a year, full-value awards will count
                            as equivalent to
                            two option shares. Any awards that are settled only in
                            cash will not be
                            counted for this purpose. </font></div>
                        </td>
                      </tr>

                  </table>
                </div>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                      <tr valign="top" style="LINE-HEIGHT: 1.25">
                        <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#183;&#160;&#160;</font></td>
                        <td>
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                            prior limit on awards outstanding at any given point
                            in time under all
                            Company equity incentive plans of six percent of the
                            shares of Common
                            Stock outstanding was deleted.</font></div>
                        </td>
                      </tr>

                  </table>
                </div>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                      <tr valign="top" style="LINE-HEIGHT: 1.25">
                        <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#183;&#160;&#160;</font></td>
                        <td>
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Shares
                            surrendered to pay taxes will no longer go back into
                            the pool of available
                            shares.</font></div>
                        </td>
                      </tr>

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                </div>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                      <tr valign="top" style="LINE-HEIGHT: 1.25">
                        <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#183;&#160;&#160;</font></td>
                        <td>
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Each
                            share underlying a stock settled SAR will be counted
                            against the Amended
                            2004 Plan limit similar to a stock option, rather than
                            just the net shares
                            issued upon exercise. </font></div>
                        </td>
                      </tr>

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                  <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                      <tr valign="top" style="LINE-HEIGHT: 1.25">
                        <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#183;&#160;&#160;</font></td>
                        <td>
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Dividend-equivalent
                            rights may not be issued in tandem with options or
                            SARs.</font></div>
                        </td>
                      </tr>

                  </table>
                </div>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                      <tr valign="top" style="LINE-HEIGHT: 1.25">
                        <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#183;&#160;&#160;</font></td>
                        <td>
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">At
                            least 25% of the future awards to the named executive
                            officers will be
                            performance-based, with vesting contingent solely on
                            satisfying
                            performance criteria, including achievement of common
                            stock price targets,
                            established by the Compensation
                            Committee.</font></div>
                        </td>
                      </tr>

                  </table>
                </div>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                      <tr valign="top" style="LINE-HEIGHT: 1.25">
                        <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#183;&#160;&#160;</font></td>
                        <td>
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                            term of the Amended 2004 Plan was extended until 2011.
                            </font></div>
                        </td>
                      </tr>

                  </table>
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Under
                  the
                  Amended 2004 Plan, the Company can grant stock options, SARs, stock
                  units, stock
                  awards, bonus shares, dividend equivalents and other stock-based
                  awards. All
                  employees, including all executive officers of the Company, and
                  non-employee
                  directors and advisory directors are eligible to participate in
                  the Amended 2004
                  Plan. The Compensation Committee of the Board of Directors intends
                  to focus
                  awards under the Amended 2004 Plan on management and other key
                  employees.&#160;
<font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">As
                  amended, and as adjusted for the four-for-three stock split in
                  March 2005, an
                  aggregate of 33,750,000 shares of common stock are available for
                  awards under
                  the Amended 2004 Plan, of which a total of 2,500,000 may be granted
                  in
                  connection with full-value awards. The maximum number of shares
                  of common stock
                  with respect to which options and SARs settled in cash may be made
                  under the
                  Amended </font></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </div>
              <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                <div id="FTR" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <div id="GLFTR" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong>2</strong></div>
                </div>
                <div id="PN" style="PAGE-BREAK-AFTER: always; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify">
                  </div>
                  <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify">
                    <hr style="COLOR: black" noshade size="2">
                  </div>
                </div>
                <div id="HDR" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <div id="GLHDR" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  </div>
                </div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2004
                Plan
                to any individual during any calendar year is 3,333,333. The maximum
                number of
                shares of common stock with respect to which full-value awards may
                be made under
                the plan to any individual participant during any calendar year is
                666,666. A
                participant may not accrue dividend equivalents during any calendar
                year in
                excess of the amount of dividends actually declared with respect
                to 3,333,333
                shares. The maximum aggregate number of shares of common stock with
                respect to
                which awards may be made to individual non-employee directors or
                advisory
                directors during any calendar year is 20,000. </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                  Amended 2004 Plan is included as Exhibit 10.1 to this Current Report
                  on Form 8-K
                  and incorporated herein by reference.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Executive
                  Compensation</u>. On May 14, 2006, the Compensation Committee of the Board
                  of
                  Directors approved scheduled mid-year bonuses to be paid June 1,
                  2006 for the
                  named executive officers as follows: Mr. Bob R. Simpson, Chairman
                  of the Board
                  and Chief Executive Officer, $14,000,000; Mr. Keith A. Hutton,
                  President,
                  $1,600,000; Mr. Vaughn O. Vennerberg II, Senior Executive Vice
                  President and
                  Chief of Staff, $1,300,000; Mr. Louis G. Baldwin, Executive Vice
                  President and
                  Chief Financial Officer, $375,000; and Mr. Timothy L. Petrus, Executive
                  Vice
                  President - Acquisitions, $340,000. </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Employment
                  Agreements</u>. On May 14, 2006, the Compensation Committee approved a new
                  employment agreement for Mr. Simpson effective May 16, 2006 and
                  ending November
                  30, 2006, which automatically continues year to year thereafter
                  unless
                  terminated by either party upon thirty days&#8217; written notice prior to each
                  November 30. This agreement replaced his existing employment agreement
                  dated May
                  17, 2000, as amended August 20, 2002. The Compensation Committee
                  also approved
                  employment agreements with Keith A. Hutton and Vaughn O. Vennerberg
                  II effective
                  May 16, 2006. </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                  terms
                  of Mr. Simpson&#8217;s new employment agreement are substantially the same as his
                  prior agreement, but the agreement has been updated to reflect
                  his current
                  salary and car allowance, to address potential issues concerning
                  deferred
                  compensation under Section 409A of the Internal Revenue Code, to
                  clarify the
                  treatment of bonuses in determining severance payments, to address
                  what he will
                  receive upon retirement, to provide the Company the right to obtain
                  a release
                  upon any payment under the agreement, to require arbitration of
                  any disputes
                  under the agreement, to reflect benefits currently being provided
                  by the Company
                  and other conforming changes. The terms of Messrs. Hutton and Vennerberg
                  are
                  identical to Mr. Simpson&#8217;s agreement, other than the minimum base salary and car
                  allowance.&#160; </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Pursuant
                  to the agreement, Mr. Simpson is to continue to serve as Chairman
                  of the Board
                  and Chief Executive Officer and is to receive an annual base salary
                  of at least
                  $1,200,000. The minimum base salary for Messrs. Hutton and Vennerberg
                  is
                  $675,000 and $540,000, respectively. The Compensation Committee
                  of the Board of
                  Directors has authority to pay a base salary in excess of the minimum
                  base
                  salary in the agreement. The agreement provides that the employee
                  is entitled to
                  participate in any incentive compensation program established by
                  the Company for
                  its executive officers in a manner approved by the Compensation
                  Committee. The
                  employee also receives a minimum of $3,000,000 of life insurance
                  and
                  participates in the group medical and disability insurance plans
                  of the Company.
                  Mr. Simpson is to receive a minimum of $3,500 per month, and Messrs.
                  Hutton and
                  Vennerberg a minimum of $3,200 per month, for an automobile allowance,
                  plus
                  reimbursement for fuel, maintenance, registration, and insurance
                  costs for the
                  automobile. </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                  agreement is subject to early termination upon the death or disability
                  of the
                  employee, by the Company for cause, by the employee for good reason,
                  or the
                  retirement of the employee. If the agreement is terminated for
                  cause, or by the
                  employee without good reason, the Company is not required to make
                  additional
                  payments. If the agreement terminates because of the retirement
                  of the employee,
                  the Company will enter into a consulting agreement as described
                  below and
                  provide certain insurance and other benefits, but no additional
                  payments are
                  required. </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </div>
              <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                <div id="FTR" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <div id="GLFTR" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong>3</strong></div>
                </div>
                <div id="PN" style="PAGE-BREAK-AFTER: always; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify">
                  </div>
                  <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify">
                    <hr style="COLOR: black" noshade size="2">
                  </div>
                </div>
                <div id="HDR" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <div id="GLHDR" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  </div><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">If
                  the
                  employee terminates employment for good reason, or if the Company
                  terminates him
                  without cause, or a change in control occurs, the employee is entitled
                  to a
                  lump-sum payment of three times the sum of: (i) his most recent
                  annual salary,
                  (ii) two times the highest of his two most recent semi-annual bonuses,
                  (iii)
                  twelve times his monthly car allowance, and (iv) any special bonuses
                  received in
                  the past three years, including any amount the Company is required
                  to report as
                  a bonus in the Company&#8217;s proxy statement under the rules of the Securities and
                  Exchange Commission. In addition, the employee becomes fully vested
                  in all
                  options, performance shares, and other awards granted under the
                  Company&#8217;s stock
                  incentive plans upon any such termination or change in control.
                  The employee
                  will also receive 18 months of medical, vision, and dental benefits
                  and
                  ownership of any vehicles, club memberships, and life insurance
                  policies then
                  being provided. The agreement further provides that if the employee
                  is subject
                  to the 20% excise tax on excess parachute payments, then the Company
                  will pay
                  him an additional amount to &#8220;gross-up&#8221; the payment so that he receives the full
                  amount due under the terms of the agreement after payment of the
                  excise tax. The
                  Company may condition payment of amounts under the agreement upon
                  the receipt of
                  a release and covenant not to sue or pursue arbitration. </font></div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">A
&#8220;change
                  in control&#8221; of the Company under the agreement is deemed to have occurred
                  only
                  if (i) any one person or more than one person acting as a group
                  acquires (a)
                  ownership of the Company&#8217;s stock that constitutes more than 50% of the total
                  fair market value or total voting power of the Company&#8217;s stock, (b) ownership of
                  35% or more of the total voting power of the Company&#8217;s stock over a period not
                  exceeding 12 months (ending on the date of the most recent acquisition
                  by such
                  person or group; or (c) assets <font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">from
                  the
                  Company that have a total gross fair market value equal to more
                  than 40% of the
                  total gross fair market value of all assets of the Company immediately
                  prior to
                  the acquisition over a period not exceeding 12 months (ending on
                  the date of the
                  most recent acquisition by such person or group, or (ii) certain
                  specified
                  majority changes in the composition of the Board of Directors occur.
                  </font></font>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Upon
                      retirement from employment with the Company, the Company and
                      the employee will
                      enter into an eighteen-month consulting agreement. The employee
                      will receive a
                      minimum monthly payment based on his annual salary at the time
                      of retirement,
                      plus $10,000 a month for expenses. The employee will become
                      fully vested in all
                      options, performance shares, and other awards granted under
                      the Company&#8217;s stock
                      incentive plans upon retirement and, notwithstanding any provision
                      to the
                      contrary in the Company&#8217;s stock incentive plans, the exercise period of the
                      employee&#8217;s awards will be extended to the full term of the award.
</font></div>
                  </div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Item
                      1.02.</strong>&#160;<strong>Termination of a Material Definitive
                      Agreement</strong></font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>In
                      connection with
                      the approval of the new employment agreement, the Amended and
                      Restated
                      Employment Agreement between the Company and Bob R. Simpson,
                      dated May 17, 2000,
                      as amended by the amendment thereto dated August 20, 2002,
                      was terminated
                      effective May 16, 2006. </div>
                  </div><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </div>
              <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                <div id="FTR" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <div id="GLFTR" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong>4</strong></div>
                </div>
                <div id="PN" style="PAGE-BREAK-AFTER: always; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify">
                  </div>
                  <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify">
                    <hr style="COLOR: black" noshade size="2">
                  </div>
                </div>
                <div id="HDR" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <div id="GLHDR" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  </div>
                </div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><strong>Item
                8.01.</strong>&#160;<strong>Other
                Events</strong></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">The
                Annual Meeting of Stockholders of the Company was held on May
                16, 2006. A total of 317,713,495 of the Company&#8217;s shares were present or
                represented by proxy at the meeting. This represented 87% of the
                Company&#8217;s
                outstanding shares at March 31, 2006, the record date of the meeting.
                The
                individuals listed below were elected as directors based on the following
                tabulations.</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                <table cellpadding="0" cellspacing="0" width="50%">

                    <tr>
                      <td valign="bottom" width="23%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">Name</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="bottom" width="12%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">For</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="bottom" width="11%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">Withheld</div>
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">or</div>
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">Against</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="bottom" width="8%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">Abstain</div>
                      </td>
                    </tr>
                    <tr>
                      <td valign="top" width="23%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                          <hr style="COLOR: black" noshade size="2" width="100%">
                        </div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="12%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                          <hr style="COLOR: black" noshade size="2" width="100%">
                        </div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="11%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                          <hr style="COLOR: black" noshade size="2" width="100%">
                        </div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="8%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                          <hr style="COLOR: black" noshade size="2" width="100%">
                        </div>
                      </td>
                    </tr>
                    <tr>
                      <td align="justify" valign="top" width="23%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">Lane
                          G. Collins</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="12%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">294,883,186</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="11%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">22,824,792</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="8%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">5,516</div>
                      </td>
                    </tr>
                    <tr>
                      <td align="justify" valign="top" width="23%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">Phillip
                          R. Kevil</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="12%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">285,134,252</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="11%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">32,573,560</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="8%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">5,682</div>
                      </td>
                    </tr>
                    <tr>
                      <td align="justify" valign="top" width="23%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">Herbert
                          D. Simons</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="12%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">288,696,181</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="11%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">29,011,731</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="8%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">5,582</div>
                      </td>
                    </tr>
                    <tr>
                      <td align="justify" valign="top" width="23%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">Vaughn
                          O. Vennerberg II</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="12%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">285,704,004</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="11%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">32,003,909</div>
                      </td>
                      <td valign="top" width="2%">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                      <td valign="top" width="8%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">5,582</div>
                      </td>
                    </tr>

                </table>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">Other
                directors continuing in office are William H. Adams III,
                Keith A. Hutton, Jack R. Randall, Scott G. Sherman and Bob R. Simpson.
                Louis G.
                Baldwin and Timothy L. Petrus continue to serve as non-voting advisory
                directors. </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">Additionally,
                the proposal to amend the Company&#8217;s Amended and
                Restated Certificate of Incorporation to increase the Company&#8217;s authorized
                shares of Common Stock to 1,000,000,000 was approved by stockholders
                with
                283,103,187 votes for, 29,180,959 votes against and 1,947,343 votes
                abstaining.
</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">Stockholders
                also approved the XTO Energy Inc. Amended and
                Restated 2004 Stock Incentive Plan with 228,748,009 votes for, 41,028,542
                votes
                against and 2,294,425 votes abstaining.</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">The
                stockholders also ratified the appointment of KPMG LLP as the
                Company&#8217;s independent auditor for 2006 with 307,277,078 votes for, 8,542,080
                votes against and 1,760,322 votes abstaining.</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><strong>Item
                  9.01.</strong>&#160;<strong>Financial Statements and
                  Exhibits.</strong></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">The
                  following exhibit is filed with this Form 8-K:</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(c)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Exhibit
                  No.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Description</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;1</font>0.1<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;XTO
                  Energy Inc.
                  Amended and Restated 2004 Stock Incentive Plan (incorporated by
                  reference to
                  Appendix B to the Proxy&#160;<br><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;</font>Statement
                  dated April 13, 2006 for the
                  Annual Meeting of Stockholders held on May 16, 2006)</font></div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                <div id="FTR" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <div id="GLFTR" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong>5</strong></div>
                </div>
                <div id="PN" style="PAGE-BREAK-AFTER: always; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify">
                  </div>
                  <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify">
                    <hr style="COLOR: black" noshade size="2">
                  </div>
                </div>
                <div id="HDR" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <div id="GLHDR" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  </div>
                </div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font>&#160;&#160;&#160;&#160;&#160;</div>
            </div>
          </div>
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 45pt"></font>Pursuant
        to the requirements of the
        Securities Exchange Act of 1934, the registrant has duly caused this report
        to
        be signed on its behalf by the undersigned hereunto duly
        authorized.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="37%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="left" colspan="2" valign="top" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">XTO
                  ENERGY INC.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="37%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="37%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Date:&#160;
                May 18, 2006</font></td>
              <td align="left" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">By:</font></div>
              </td>
              <td valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                  /s/ </u><u>BENNIE G.
                  KNIFFEN&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</u></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="37%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Bennie
                  G. Kniffen</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="37%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Senior
                  Vice President and Controller</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>6</strong></font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      </div>
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{"company-data": {"conformed-name": "XTO ENERGY INC", "cik": "0000868809", "assigned-sic": "1311", "irs-number": "752347769", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-10662", "film-number": "06852891"}, "business-address": {"street1": "810 HOUSTON ST", "street2": "STE 2000", "city": "FORT WORTH", "state": "TX", "zip": "76102", "phone": "8178702800"}, "mail-address": {"street1": "810 HOUSTON STREET", "street2": "STE 2000", "city": "FORT WORTH", "state": "TX", "zip": "76102"}, "former-company": {"former-conformed-name": "CROSS TIMBERS OIL CO", "date-changed": "19940801"}}
XTO 0606 Compensation
UNITED
        STATES
SECURITIES
        AND EXCHANGE COMMISSION
WASHINGTON,
        DC 20549
FORM
          8-K
CURRENT
          REPORT PURSUANT
TO
        SECTION 13 OR 15(D) OF THE
SECURITIES
        EXCHANGE ACT OF 1934
Date
        of
        report (Date of earliest event reported
):
May
        14
,
        2006
XTO
          ENERGY INC.
(Exact
        Name of Registrant as Specified in Its Charter)
Delaware
(State
        or
        Other Jurisdiction of Incorporation)
1-10662
75-2347769
(Commission
                  File Number)
(IRS
                  Employer Identification No.)
810
                  Houston, Fort Worth, Texas
76102
(Address
                  of Principal Executive Offices)
(Zip
                  Code)
(817)
        870-2800
(Registrant's
        Telephone Number, Including Area Code)
NONE
(Former
        Name or Former Address, if Changed Since Last Report)
Check
          the
          appropriate box below if the Form 8-K filing is intended to simultaneously
          satisfy the filing obligation of the registrant under any of the following
          provisions (
see
General Instruction A.2. below):
¨
Written
          communications pursuant to Rule 425 under the Securities Act (17 CFR
          230.425)
¨
Soliciting
          material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
          240.14a-12)
¨
Pre-commencement
          communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
          240.14d-2(b))
¨
Pre-commencement
          communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
          240.13e-4(c))
Item
            1.01. Entry into a Material Definitive
            Agreement.
Amended
                  and Restated 2004 Stock Incentive Plan
. On May 16, 2006, the Company's
                  stockholders approved the XTO Energy Inc. Amended and Restated
                  2004 Stock
                  Incentive Plan ("Amended 2004 Plan") at the Annual Meeting of Stockholders. The
                  Amended 2004 Plan is the only stock incentive plan of the Company
                  under which
                  awards may be granted. The Amended 2004 Plan is nearly identical
                  in design to
                  the 2004 Stock Incentive Plan approved by the stockholders on November
                  16, 2004.
                  The following is a brief description of the material differences
                  in the terms
                  and administration of the Amended 2004 Plan:
·
The
                            number of shares available for grant was increased by
                            9,750,000.
·
The
                            number of shares that can be granted as "full-value" awards, meaning
                            awards other than options, stock appreciation rights
                            ("SARs") that are
                            settled in cash, and other than awards for which the
                            participant pays at
                            least the fair market value for the shares subject thereto,
                            has been
                            reduced from 12,000,000 to 2,500,000. Full-value awards
                            can be granted in
                            excess of this limit but will be counted three to one
                            against the
                            remaining available share pool.
·
The
                            Company has committed to keep the average annual run
                            rate or grant rate
                            for awards over the three-year period from 2006 through
                            2008 at or below
                            2.5% of the Company's Common Stock outstanding at year-end for the
                            specified period. For purposes of calculating the number
                            of shares subject
                            to awards granted in a year, full-value awards will count
                            as equivalent to
                            two option shares. Any awards that are settled only in
                            cash will not be
                            counted for this purpose.
·
The
                            prior limit on awards outstanding at any given point
                            in time under all
                            Company equity incentive plans of six percent of the
                            shares of Common
                            Stock outstanding was deleted.
·
Shares
                            surrendered to pay taxes will no longer go back into
                            the pool of available
                            shares.
·
Each
                            share underlying a stock settled SAR will be counted
                            against the Amended
                            2004 Plan limit similar to a stock option, rather than
                            just the net shares
                            issued upon exercise.
·
Dividend-equivalent
                            rights may not be issued in tandem with options or
                            SARs.
·
At
                            least 25% of the future awards to the named executive
                            officers will be
                            performance-based, with vesting contingent solely on
                            satisfying
                            performance criteria, including achievement of common
                            stock price targets,
                            established by the Compensation
                            Committee.
·
The
                            term of the Amended 2004 Plan was extended until 2011.
Under
                  the
                  Amended 2004 Plan, the Company can grant stock options, SARs, stock
                  units, stock
                  awards, bonus shares, dividend equivalents and other stock-based
                  awards. All
                  employees, including all executive officers of the Company, and
                  non-employee
                  directors and advisory directors are eligible to participate in
                  the Amended 2004
                  Plan. The Compensation Committee of the Board of Directors intends
                  to focus
                  awards under the Amended 2004 Plan on management and other key
                  employees.
As
                  amended, and as adjusted for the four-for-three stock split in
                  March 2005, an
                  aggregate of 33,750,000 shares of common stock are available for
                  awards under
                  the Amended 2004 Plan, of which a total of 2,500,000 may be granted
                  in
                  connection with full-value awards. The maximum number of shares
                  of common stock
                  with respect to which options and SARs settled in cash may be made
                  under the
                  Amended
2
2004
                Plan
                to any individual during any calendar year is 3,333,333. The maximum
                number of
                shares of common stock with respect to which full-value awards may
                be made under
                the plan to any individual participant during any calendar year is
                666,666. A
                participant may not accrue dividend equivalents during any calendar
                year in
                excess of the amount of dividends actually declared with respect
                to 3,333,333
                shares. The maximum aggregate number of shares of common stock with
                respect to
                which awards may be made to individual non-employee directors or
                advisory
                directors during any calendar year is 20,000.
The
                  Amended 2004 Plan is included as Exhibit 10.1 to this Current Report
                  on Form 8-K
                  and incorporated herein by reference.
Executive
                  Compensation
. On May 14, 2006, the Compensation Committee of the Board
                  of
                  Directors approved scheduled mid-year bonuses to be paid June 1,
                  2006 for the
                  named executive officers as follows: Mr. Bob R. Simpson, Chairman
                  of the Board
                  and Chief Executive Officer, $14,000,000; Mr. Keith A. Hutton,
                  President,
                  $1,600,000; Mr. Vaughn O. Vennerberg II, Senior Executive Vice
                  President and
                  Chief of Staff, $1,300,000; Mr. Louis G. Baldwin, Executive Vice
                  President and
                  Chief Financial Officer, $375,000; and Mr. Timothy L. Petrus, Executive
                  Vice
                  President - Acquisitions, $340,000.
Employment
                  Agreements
. On May 14, 2006, the Compensation Committee approved a new
                  employment agreement for Mr. Simpson effective May 16, 2006 and
                  ending November
                  30, 2006, which automatically continues year to year thereafter
                  unless
                  terminated by either party upon thirty days' written notice prior to each
                  November 30. This agreement replaced his existing employment agreement
                  dated May
                  17, 2000, as amended August 20, 2002. The Compensation Committee
                  also approved
                  employment agreements with Keith A. Hutton and Vaughn O. Vennerberg
                  II effective
                  May 16, 2006.
The
                  terms
                  of Mr. Simpson's new employment agreement are substantially the same as his
                  prior agreement, but the agreement has been updated to reflect
                  his current
                  salary and car allowance, to address potential issues concerning
                  deferred
                  compensation under Section 409A of the Internal Revenue Code, to
                  clarify the
                  treatment of bonuses in determining severance payments, to address
                  what he will
                  receive upon retirement, to provide the Company the right to obtain
                  a release
                  upon any payment under the agreement, to require arbitration of
                  any disputes
                  under the agreement, to reflect benefits currently being provided
                  by the Company
                  and other conforming changes. The terms of Messrs. Hutton and Vennerberg
                  are
                  identical to Mr. Simpson's agreement, other than the minimum base salary and car
                  allowance.
Pursuant
                  to the agreement, Mr. Simpson is to continue to serve as Chairman
                  of the Board
                  and Chief Executive Officer and is to receive an annual base salary
                  of at least
                  $1,200,000. The minimum base salary for Messrs. Hutton and Vennerberg
                  is
                  $675,000 and $540,000, respectively. The Compensation Committee
                  of the Board of
                  Directors has authority to pay a base salary in excess of the minimum
                  base
                  salary in the agreement. The agreement provides that the employee
                  is entitled to
                  participate in any incentive compensation program established by
                  the Company for
                  its executive officers in a manner approved by the Compensation
                  Committee. The
                  employee also receives a minimum of $3,000,000 of life insurance
                  and
                  participates in the group medical and disability insurance plans
                  of the Company.
                  Mr. Simpson is to receive a minimum of $3,500 per month, and Messrs.
                  Hutton and
                  Vennerberg a minimum of $3,200 per month, for an automobile allowance,
                  plus
                  reimbursement for fuel, maintenance, registration, and insurance
                  costs for the
                  automobile.
The
                  agreement is subject to early termination upon the death or disability
                  of the
                  employee, by the Company for cause, by the employee for good reason,
                  or the
                  retirement of the employee. If the agreement is terminated for
                  cause, or by the
                  employee without good reason, the Company is not required to make
                  additional
                  payments. If the agreement terminates because of the retirement
                  of the employee,
                  the Company will enter into a consulting agreement as described
                  below and
                  provide certain insurance and other benefits, but no additional
                  payments are
                  required.
3
If
                  the
                  employee terminates employment for good reason, or if the Company
                  terminates him
                  without cause, or a change in control occurs, the employee is entitled
                  to a
                  lump-sum payment of three times the sum of: (i) his most recent
                  annual salary,
                  (ii) two times the highest of his two most recent semi-annual bonuses,
                  (iii)
                  twelve times his monthly car allowance, and (iv) any special bonuses
                  received in
                  the past three years, including any amount the Company is required
                  to report as
                  a bonus in the Company's proxy statement under the rules of the Securities and
                  Exchange Commission. In addition, the employee becomes fully vested
                  in all
                  options, performance shares, and other awards granted under the
                  Company's stock
                  incentive plans upon any such termination or change in control.
                  The employee
                  will also receive 18 months of medical, vision, and dental benefits
                  and
                  ownership of any vehicles, club memberships, and life insurance
                  policies then
                  being provided. The agreement further provides that if the employee
                  is subject
                  to the 20% excise tax on excess parachute payments, then the Company
                  will pay
                  him an additional amount to "gross-up" the payment so that he receives the full
                  amount due under the terms of the agreement after payment of the
                  excise tax. The
                  Company may condition payment of amounts under the agreement upon
                  the receipt of
                  a release and covenant not to sue or pursue arbitration.
A
"change
                  in control" of the Company under the agreement is deemed to have occurred
                  only
                  if (i) any one person or more than one person acting as a group
                  acquires (a)
                  ownership of the Company's stock that constitutes more than 50% of the total
                  fair market value or total voting power of the Company's stock, (b) ownership of
                  35% or more of the total voting power of the Company's stock over a period not
                  exceeding 12 months (ending on the date of the most recent acquisition
                  by such
                  person or group; or (c) assets
from
                  the
                  Company that have a total gross fair market value equal to more
                  than 40% of the
                  total gross fair market value of all assets of the Company immediately
                  prior to
                  the acquisition over a period not exceeding 12 months (ending on
                  the date of the
                  most recent acquisition by such person or group, or (ii) certain
                  specified
                  majority changes in the composition of the Board of Directors occur.
Upon
                      retirement from employment with the Company, the Company and
                      the employee will
                      enter into an eighteen-month consulting agreement. The employee
                      will receive a
                      minimum monthly payment based on his annual salary at the time
                      of retirement,
                      plus $10,000 a month for expenses. The employee will become
                      fully vested in all
                      options, performance shares, and other awards granted under
                      the Company's stock
                      incentive plans upon retirement and, notwithstanding any provision
                      to the
                      contrary in the Company's stock incentive plans, the exercise period of the
                      employee's awards will be extended to the full term of the award.
Item
                      1.02.
Termination of a Material Definitive
                      Agreement
In
                      connection with
                      the approval of the new employment agreement, the Amended and
                      Restated
                      Employment Agreement between the Company and Bob R. Simpson,
                      dated May 17, 2000,
                      as amended by the amendment thereto dated August 20, 2002,
                      was terminated
                      effective May 16, 2006.
4
Item
                8.01.
Other
                Events
The
                Annual Meeting of Stockholders of the Company was held on May
                16, 2006. A total of 317,713,495 of the Company's shares were present or
                represented by proxy at the meeting. This represented 87% of the
                Company's
                outstanding shares at March 31, 2006, the record date of the meeting.
                The
                individuals listed below were elected as directors based on the following
                tabulations.
Name
For
Withheld
or
Against
Abstain
Lane
                          G. Collins
294,883,186
22,824,792
5,516
Phillip
                          R. Kevil
285,134,252
32,573,560
5,682
Herbert
                          D. Simons
288,696,181
29,011,731
5,582
Vaughn
                          O. Vennerberg II
285,704,004
32,003,909
5,582
Other
                directors continuing in office are William H. Adams III,
                Keith A. Hutton, Jack R. Randall, Scott G. Sherman and Bob R. Simpson.
                Louis G.
                Baldwin and Timothy L. Petrus continue to serve as non-voting advisory
                directors.
Additionally,
                the proposal to amend the Company's Amended and
                Restated Certificate of Incorporation to increase the Company's authorized
                shares of Common Stock to 1,000,000,000 was approved by stockholders
                with
                283,103,187 votes for, 29,180,959 votes against and 1,947,343 votes
                abstaining.
Stockholders
                also approved the XTO Energy Inc. Amended and
                Restated 2004 Stock Incentive Plan with 228,748,009 votes for, 41,028,542
                votes
                against and 2,294,425 votes abstaining.
The
                stockholders also ratified the appointment of KPMG LLP as the
                Company's independent auditor for 2006 with 307,277,078 votes for, 8,542,080
                votes against and 1,760,322 votes abstaining.
Item
                  9.01.
Financial Statements and
                  Exhibits.
The
                  following exhibit is filed with this Form 8-K:
(c)
Exhibit
                  No.
Description
1
0.1
XTO
                  Energy Inc.
                  Amended and Restated 2004 Stock Incentive Plan (incorporated by
                  reference to
                  Appendix B to the Proxy
Statement
                  dated April 13, 2006 for the
                  Annual Meeting of Stockholders held on May 16, 2006)
5
SIGNATURES
Pursuant
        to the requirements of the
        Securities Exchange Act of 1934, the registrant has duly caused this report
        to
        be signed on its behalf by the undersigned hereunto duly
        authorized.
XTO
                  ENERGY INC.
Date: 
                May 18, 2006
By:
/s/
BENNIE G.
                  KNIFFEN
Bennie
                  G. Kniffen
Senior
                  Vice President and Controller
6