BURLINGTON RESOURCES ANNOUNCES STRONG FIRST QUARTER RESULTS AND ANTICIPATES CONTINUED STRENGTH.HOUSTON--(BUSINESS WIRE)--April 11, 1996--Burlington Resources (BR) reported first 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 $63 million and net income of $38 million or $.30 per share. For the same period last year, the company reported operating income of $2 million and a net loss of $5 million or $.04 per share. 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. for the first quarter increased 30% to $131 million as compared to $101 million. 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. of BR stated, "The results reflect strengthening oil and gas markets which we believe are supported by positive and sustainable fundamentals. Our company is highly leveraged to natural gas prices. For each $.10 gain in our annual average realized gas price, BR's annual earnings per share increases $.20. Based on further price strengthening at most of our sales points in April, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the second quarter will show continued earnings momentum." Natural gas sales volumes averaged 1,180 million cubic feet per day (mmcf/d) during the first quarter compared to 1,145 mmcf/d in the first quarter of 1995. First quarter oil sales volumes increased to 48,000 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 47,000 barrels per day a year ago. Realized natural gas prices increased from $1.23 per thousand cubic feet (mcf) to $1.55 per mcf. Oil prices moved up from $16.43 per barrel to $17.94 per barrel. During the quarter, BR acquired 462,400 shares of its common stock. Since it began acquiring stock in 1988, the company has purchased approximately 28 million shares or 19 percent of its original common stock capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. . Capital expenditures during the first quarter of 1996 were $122 million compared to $141 million last year. Excluding acquisitions, capital expenditures increased to $120 million from $106 million reflecting continued strong exploration and development activity. Exploration and development activities in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east have continued to generate very positive results. Development of the company's exploration discovery at High Island A-371 is proceeding ahead of schedule with platform installation completed in March. The company has drilled three productive wells at this location with aggregate capacity of 30 mmcf/d. Production will commence during the second quarter with simultaneous drilling and production activities taking place during the second half of 1996. Net production from this property is expected to exceed 80 mmcf/d by year end. In addition to High Island A-371, the company has a combined initial production capacity of 50 mmcf/d of gas and 2,500 barrels of oil per day from other offshore wells already drilled but awaiting necessary production facilities. The River Run Trend continues to be a very successful horizontal oil play located in the Williston Williston, city (1990 pop. 13,131), seat of Williams co., NW N.Dak., on the Missouri River; inc. 1904. An early riverboating town, its importance increased with the arrival of the Great Northern Railway (1887) and later by the discovery (1951) of rich oil reserves in Basin of North and South Dakota South Dakota (dəkō`tə), state in the N central United States. It is bordered by North Dakota (N), Minnesota and Iowa (E), Nebraska (S), and Wyoming and Montana (W). . During the first quarter the company as operator drilled 11 gross wells and participated in 5 outside operated wells. The company will continue this active program during the remainder of 1996. Current net production from this trend is over 3,700 barrels of oil per day (BOPD BOPD Barrels of Oil Per Day BOPD Bataan Ocean Petroleum Depot ) and by year end production from this trend is expected to exceed 5,000 BOPD. -0-
BURLINGTON RESOURCES INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
FIRST QUARTER
1996 1995
(In Thousands, Except per Share Amounts)
Revenues..............................$ 255,477 $ 214,569 Costs and Expenses.................... 192,597 212,858 Operating Income...................... 62,880 1,711 Interest Expense...................... 28,286 26,365 Other Income - Net.................... 346 533 Income (Loss) Before Income Taxes..... 34,940 (24,121) Income Tax Benefit.................... (2,888) (19,297) Net Income (Loss).....................$ 37,828 $ (4,824) Earnings (Loss) per Common Share......$ .30 $ (.04) Average Common Shares................. 126,742 126,975
This financial 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., Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; James Leahy, 713/624-9364 |
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