BURLINGTON RESOURCES ADOPTS ACCOUNTING STANDARD 121 RESULTING IN A $304 MILLION NON-CASH CHARGE TO NET INCOME.HOUSTON--(BUSINESS WIRE)--Oct. 12, 1995--During the third quarter, Burlington Resources Burlington Resources, is an American oil and gas company. Their headquarters are in Houston, Texas. Based in Houston, Texas, BR has major offices located in Calgary, London, Farmington, Midland and Fort Worth. (BR) adopted Statement of Financial Accounting Standard No. 121. The primary change under the new standard is that the company will now evaluate impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of oil and gas assets on a field-by-field basis rather than in the aggregate. In the current low gas price environment, this new standard generates a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $304 million ($490 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern ). There is no impact on the company's oil and gas reserve base or cash flow. After taking into account the effects of the charge, the company reported a third quarter 1995 net loss of $300 million or $2.36 per share versus one year ago when the company earned $21 million or $.16 per share. Excluding the effects of the charge, third quarter earnings were $4 million or $.03 per share. For the first nine months, operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. was $335 million compared to $372 million for the same period last year. Although natural gas sales averaged 1,182 million cubic feet per day (mmcf/d), an improvement of 10 percent over the 1,077 mmcf/d sold in the third quarter of 1994 and crude oil sales of 48,200 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. increased 3 percent from 46,800 barrels per day in the third quarter of 1994, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. excluding the charge declined to $1 million in the third quarter of 1995 compared to $39 million for the same period last year. The primary reason for this decline was weak natural gas prices, particularly in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . Natural gas prices fell 26 percent averaging $1.16 per thousand cubic feet (mcf) in the third quarter of 1995 compared to $1.57 per mcf during the same period in 1994. Crude oil prices decreased to $16.68 per barrel from $16.98 during the same period last year. Capital expenditures during the first nine months of 1995 were $446 million, down from $751 million which included $474 million of acquisitions for the first nine months of 1994. Excluding acquisitions, capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. has increased from $277 million in 1994 to $354 million in 1995 reflecting increased exploration and development activity. -0- QUARTERLY DIVIDEND DECLARED ON COMMON STOCK The Board of Directors of Burlington Resources Inc. (BR) declared a quarterly dividend of 13 3/4 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. on the company's common stock. Dividends will be paid on January January: see month. 2, 1996, to shareholders of record on December 15, 1995. BR common stock outstanding on September 30, 1995, totaled 126,598,960 shares. -0-
BURLINGTON RESOURCES INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
THIRD QUARTER NINE MONTHS
1995 1994 1995 1994
(In Thousands, Except per Share Amounts)
Revenues................$ 210,226 $ 273,332 $ 636,008 $ 814,319 Costs and Expenses...... 699,721 233,940 1,123,667 659,642 Operating Income (Loss). (489,495) 39,392 (487,659) 154,677 Interest Expense........ 27,097 24,673 81,511 64,440 Other Income (Expense) - Net.................. (846) 2,038 (1,220) 1,970 Income (Loss) Before Income Taxes........... (517,438) 16,757 (570,390) 92,207 Income Tax Benefit...... (217,837) (3,938) (268,141) (9,220) Net Income (Loss).......$ (299,601) $ 20,695 $ (302,249) $ 101,427 Earnings (Loss) per Common Share...........$ (2.36) $ .16 $ (2.38) $ .78 Average Common Shares... 127,045 128,654 127,049 129,608 CONTACT: Burlington Resources, Inc., Houston James Leahy, 713/624-9364 |
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