BURLINGTON RESOURCES ANNOUNCES FOURTH QUARTER AND FULL YEAR 2000 RESULTS.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--Jan. 17, 2001 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. Inc. (NYSE NYSE See: New York Stock Exchange :BR) today reported estimated fourth quarter 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. of $485 million and net income of $304 million or $1.41 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . Net income for the quarter includes $.23 per share related to a non-recurring tax adjustment. Discretionary cash flow Discretionary cash flow Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on. , which is cash flow before changes in working capital, was $653 million. For the same period last year, the Company had an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $59 million and a net loss of $84 million or $.38 loss per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. The 1999 results included 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 $225 million ($140 million after tax or $.65 per share) related to the writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. of oil and gas properties in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 121 and a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charge of $37 million ($26 million after tax or $.12 per share) for merger costs associated with the acquisition of Poco po·co adv. Music To a slight degree or amount; somewhat. Used chiefly as a direction. [Italian, from Latin paucus; see pau-1 in Indo-European roots.] Petroleums Ltd. Discretionary cash flow for 1999's fourth quarter was $347 million. Natural gas sales averaged 1,911 million cubic feet per day (Mmcfd) during the fourth quarter of 2000 compared to 2,090 Mmcfd in the same period last year. Fourth quarter 2000 oil volumes totaled 69,700 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. compared to 88,600 barrels per day in 1999's final quarter. Gas price realizations were $4.68 per thousand cubic feet (Mcf) in the fourth quarter of 2000, up 83 percent in comparison to $2.56 per Mcf in the fourth quarter of 1999. Oil price realizations rose 16 percent from $22.72 per barrel in 1999's fourth quarter to $26.39 per barrel in the same period for 2000. For the year ended December 31, 2000, operating income was $1,191 million and net income was $675 million or $3.12 diluted earnings per share. These amounts compare to operating income of $236 million and net income of $1 million for the year ended December 31, 1999. The 1999 amounts included the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. charges. Discretionary cash flow in 2000 was $1,839 million, an increase of 67 percent over 1999's $1,099 million. Bobby S. Shackouls, Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , commented, "This has been a dramatic year for our industry and for BR. Our strong cash flow generation capability and premier asset base, along with our operational achievements, position us extremely well for the future." Reserve Update The Company also reported that it replaced 115 percent of 2000 worldwide production at an average cost of $.89 per thousand cubic feet of gas equivalent (Mcfe). Worldwide reserve additions from all sources totaled 1,143 billion cubic feet of gas equivalent (Bcfe). Total reserves stood at 10,321 Bcfe at year-end 2000, up slightly from 10,256 Bcfe at year-end 1999. Approximately 80 percent of 2000 year-end reserves were natural gas and 20 percent were oil. Extensions, discoveries, additions and revisions totaled 898 Bcfe. Significant reserves were added from drilling and development activities in the Company's San Juan Basin The San Juan Basin is a drainage basin and geologic structural basin in the Four Corners region of the Southwestern United States; its main portion covers around 4,600 square miles, encompassing much of northwestern New Mexico, northeastern Arizona, and parts of Colorado and Utah. , Wind River Basin and Canadian operations. Acquisitions in 2000 totaled 119 Bcfe or approximately 13 percent of production. The majority of the proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. acquired were in China. For the three-year period 1998 through 2000, the Company replaced an average of 139 percent of worldwide production at an average cost of $.92 per Mcfe, including acquisitions. Excluding acquisitions, BR replaced 111 percent of worldwide production for the three-year period at an average cost of $.94 per Mcfe. BR's capital program for 2001 is targeted at $1.1 billion compared to 2000 spending of approximately $1 billion. In 2000, the Company also repurchased 3.5 million shares of its stock for approximately $125 million. 2001 Outlook The Company expects first quarter 2001 natural gas production to be in the range of 1,850 to 2,000 Mmcfd. First quarter 2001 oil production is estimated to be in the range of 60 to 66 thousand barrels per day (Mbd). For the entire year 2001, average gas production is estimated to be in the range of 1,800 to 2,000 Mmcfd, with oil production averaging 55 to 62 Mbd. The geographic breakdown is as follows:
1st Quarter 2001 Full Year 2001
Estimate Estimate
Gas (Mmcf per day)
U.S. 1,300 - 1,375 1,290 - 1,380
Canada 420 - 465 410 - 470
Other International 130 - 160 100 - 150
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Total 1,850 - 2,000 1,800 - 2,000
Oil (Mbbls per day)
U.S. 39.5 - 42.0 35.5 - 38.5
Canada 14.0 - 16.0 14.0 - 16.0
Other International 6.5 - 8.0 5.5 - 7.5
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Total 60.0 - 66.0 55.0 - 62.0
Preliminary estimates for exploration expense are in the range of $90 to $120 million for the first quarter of 2001 and $235 to $270 million for the entire year. These forecasts include estimated dry hole expense for the respective periods. Actual dry hole expenses could differ based on timing and results of wells. First quarter and full year 2001 unit costs for well operating, transportation and general and administrative expenses are not anticipated to change significantly from fourth quarter 2000. Production taxes will vary with changes in commodity prices. Headquartered in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , Burlington Resources is one of the largest independent oil and gas companies in the world, with natural gas comprising approximately 80 percent of its reserves. The Company has operations in the U.S., Canada, the United Kingdom, South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , Africa and China. Additional information on BR is available on the Company's Web site, located at www.br-inc.com. Financial statement is attached. FORWARD-LOOKING STATEMENTS forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release may contain projections and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . Any such projections or statements reflect the Company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such projections will be achieved and actual results could differ materially from those projected. A discussion of important factors that could cause actual results to differ materially from those projected is included in the Company's periodic reports filed with the Securities and Exchange Commission.
BURLINGTON RESOURCES INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Fourth Quarter Twelve Months
--------------- ---------------
2000 1999 2000 1999
------ ------ ------ ------
(In Millions, Except per Share Amounts)
Revenues $999 $690 $3,147 $2,313
Costs and Expenses (a) 514 749 1,956 2,077
------ ------ ------ ------
Operating Income (Loss) (a) 485 (59) 1,191 236
Interest Expense 46 49 197 211
Other Expense - Net 20 14 27 2
------ ------ ------ ------
Income (Loss) Before
Income Taxes (a) 419 (122) 967 23
Income Tax Expense (Benefit) (a) 115 (38) 292 22
------ ------ ------ ------
Net Income (Loss) (a) $304 $(84) $675 $1
====== ====== ====== ======
Basic Earnings (Loss)
per Common Share (a) $1.41 $(.38) $3.13 $.01
====== ====== ====== ======
Diluted Earnings (Loss)
per Common Share (a) $1.41 $(.38) $3.12 $ --
====== ====== ====== ======
Basic Common Shares 215 216 216 216
====== ====== ====== ======
Diluted Common Shares 216 216 216 217
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(a) Fourth quarter and twelve month periods ending December 31,
1999 include a $225 million non-cash, pretax charge ($140
million after tax or $.65 per share) for impairment of oil and
gas properties. Fourth quarter and twelve month periods ending
December 31, 1999 also include a $37 million pretax charge
($26 million after tax or $.12 per share) for merger costs
related to the acquisition of Poco Petroleums Ltd.
This statement of income should be read in conjunction with the
attached press release.
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