BURLINGTON RESOURCES ANNOUNCES RECORD FOURTH QUARTER EARNINGS OF $.87 PER SHARE.HOUSTON--(BUSINESS WIRE)--Jan. 16, 1997--Burlington Resources (NYSE NYSE See: New York Stock Exchange :BR) reported fourth quarter 1996 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 $169 million and net income of $110 million or $.87 per share. For the same period last year, the company reported operating income of $20 million and net income of $23 million or $.18 per share. Bobby Shackouls, 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. , stated "this was the strongest quarter in the company's history and the fifth consecutive quarter of increased realized natural gas prices and earnings. Natural gas prices continued to be strong, particularly in the west, and we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that 1997 will be another good year." Natural gas sales averaged 1,273 million cubic feet per day (mmcf/d) during the fourth quarter compared to 1,185 mmcf/d in the fourth quarter of 1995 representing a 7% increase. Moreover, year-end volumes of over 1,325 mmcf/d represent a 12% year-over-year increase. Fourth quarter oil sales increased 9% to 53,000 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. from 48,700 barrels per day a year ago. Realized natural gas prices in the fourth quarter increased from $1.40 per thousand cubic feet (mcf) in 1995 to $2.34 per mcf in 1996. Fourth quarter realized oil prices moved up from $16.59 per barrel in 1995 to $22.96 per barrel in 1996. For the year ended December 31, 1996, operating income was $418 million and net income was $255 million or $2.02 per share. This compares to 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 $467 million and a net loss of $280 million or $(2.20) per share in 1995. The 1995 loss resulted from a non-cash after tax charge of $304 million associated with a required change in accounting for the 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 long-lived assets. 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. in 1996 increased to $652 million versus $452 million in 1995. Capital Program Capital expenditures in 1996 were $554 million compared to $589 million in 1995. In 1997 BR has budgeted capital expenditures of $650 million. Included in this amount is more than a doubling of the exploration budget from $105 million in 1996 to $220 million in 1997. The company's exploratory drilling projects will also double in 1997 to over 80 wells. In 1996, BR repurchased approximately 2.7 million shares of its common stock at an average price of $41.55. Since it began acquiring stock in 1988, the company has purchased over 30 million shares or 20 percent of its original common stock capitalization. Exploration and Production The company posted higher 1996 production for both oil and gas. Oil volumes increased 6% and gas volumes increased 5% as strong performance from properties in the Rocky Mountains Rocky Mountains, major mountain system of W North America and easternmost belt of the North American cordillera, extending more than 3,000 mi (4,800 km) from central N.Mex. to NW Alaska; Mt. Elbert (14,431 ft/4,399 m) in Colorado is the highest peak. , Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. , and Gulf Coast areas continued. Successful internal development and strategic acquisition programs resulted in reserve replacement of 120%. Lease and 3D seismic acquisitions in 1996 will allow the company to intensify its exploration efforts on quality prospects in core areas in 1997 and beyond. Exploration in the San Juan San Juan, city, Argentina San Juan (săn wän, Span. sän hwän), city (1991 pop. 353,476), capital of San Juan prov., W Argentina. It is a commercial and industrial center in an agricultural region. , Williston, Permian, and Gulf Coast Basins, coupled with continuing development of Burlington's extensive land base, should position the company to deliver strong production and reserve growth. Oil and Gas Reserves During 1996, BR added 684 billion cubic feet of natural gas equivalent (bcfe) reserves at an average cost of $0.76 per thousand cubic feet equivalent (mcfe). Despite a replacement ratio above 100 percent, 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. decreased to 6.4 trillion cubic feet of natural gas equivalent at year end from 6.7 trillion cubic feet equivalent at year-end 1995 because of the company's on- going non-strategic properties divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). program. During 1996, over 300 billion cubic feet equivalent and related facilities were sold generating approximately $160 million in proceeds. Year-end 1996 reserves include 5.2 trillion cubic feet of natural gas and 204 million barrels of oil. Proved developed reserves account for 83 percent of the company's total proved oil and gas reserves. Financial statement follows. 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 contains projections and other forward- looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These projections and 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 these projections will be achieved and actual results could differ materially from those projected as a result of certain factors. A discussion of these factors is included in the Company's periodic reports filed with the Securities and Exchange Commission. -0-
BURLINGTON RESOURCES INC.
CONSOLIDATED STATEMENT OF INCOME
FOURTH QUARTER TWELVE MONTHS
1996 1995 1996 1995
(Unaudited)
(In Millions, Except per Share Amounts)
Revenues................ $ 399 $ 237 $1,293 $ 873
Costs and Expenses...... 230 217 875 1,340
Operating Income (Loss). 169 20 418 (467)
Interest Expense........ 28 27 113 109
Other Income (Expense)
- Net................. - 1 2 (1)
Income (Loss) Before
Income Taxes........... 141 (6) 307 (577)
Income Tax Expense
(Benefit)............. 31 (29) 52 (297)
Net Income (Loss)....... $ 110 $ 23 $ 255 $ (280)
Earnings (Loss) per
Common Share......... $ .87 $ .18 $ 2.02 $(2.20)
Average Common Shares... 125 127 126 127
This income statement should be read in conjunction with the
attached press release.
CONTACT: 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. James Leahy, 713/624-9364 |
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