BURLINGTON RESOURCES ANNOUNCES THIRD QUARTER 1998 EARNINGS OF $.08 PER SHARE.HOUSTON--(BUSINESS WIRE)--Oct. 21, 1998--Burlington Resources Inc. (NYSE NYSE See: New York Stock Exchange :BR) today reported third quarter 1998 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 $41 million and net income of $15 million or $.08 per share. For the same period last year, the company reported operating income of $116 million and net income of $65 million or $.37 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 third quarter of 1998 was $231 million compared to $269 million in the same period in 1997. 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 operating cash flow before changes in working capital, was $229 million or $1.29 per share in the third quarter of 1998 compared to $277 million or $1.57 per share in the third quarter of 1997. Realized natural gas prices decreased 3 percent to $1.89 per thousand cubic feet (MCF) from $1.95 per MCF in the third quarter of 1997. Oil prices fell 31 percent to $12.60 per barrel in 1998's third quarter from $18.28 per barrel in the same period of 1997. Natural gas sales averaged 1,630 million cubic feet per day (MMCFD) during the third quarter of 1998 compared to 1,671 MMCFD in the third quarter of 1997. Third quarter 1998 oil sales volumes were 82,200 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. (BPD Borderline personality disorder (BPD) A pattern of behavior characterized by impulsive acts, intense but chaotic relationships with others, identity problems, and emotional instability. ) versus 88,700 BPD in the third quarter of 1997. Daily production volumes during the current quarter were lower than anticipated, primarily due to lost production associated with four tropical storms tropical storm n. A cyclonic storm having winds ranging from approximately 48 to 121 kilometers (30 to 75 miles) per hour. tropical storm 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 and several third party plant outages in the 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. . Bobby S. Shackouls, BR's chairman, president and chief executive officer commented, "Financial results for the third quarter of 1998 were adversely impacted by continued low oil prices, moderate gas prices and unscheduled unscheduled Adjective not planned or intended Adj. 1. unscheduled - not scheduled or not on a regular schedule; "an unscheduled meeting"; "the plane made an unscheduled stop at Gander for refueling" production interruptions. We are pleased to have posted positive earnings for the quarter, given the pricing environment the industry has experienced. The company's financial strength allows us to prudently maintain our capital program and continue moving ahead with our long-term growth strategy, in spite of short-term price declines." Operational Update During the third quarter, BR's capital expenditures, excluding acquisitions, were $279 million, bringing the year-to-date total to $793 million. This represents approximately 70 percent of BR's total 1998 capital budget. A total of 376 projects were completed during the quarter, including 281 operated and 95 non-operated new wells and workovers. During the quarter, the company spent $129 million on internal development projects, bringing the year-to-date total to $368 million. During the first nine months, development activities included the drilling of 433 new wells and 520 recompletions. The majority of the development drilling activity year-to-date has occurred 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 and Permian Basins 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. . During the quarter, the company spent $130 million on exploration projects, bringing the year-to-date total to $353 million. During the first nine months, BR drilled 70 exploration wells, with 32 of those being successful. A total of 22 exploratory wells were in progress at the end of the quarter. During the year, the company has experienced exploration success internationally in Algeria and the North Sea, and domestically in the Gulf of Mexico and onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. Gulf Coast. BR was the apparent high bidder on 31 deepwater blocks in the Gulf of Mexico at OCS OCS - Object Compatibility Standard lease sale No. 171. If awarded, BR will have interest in 189 tracts in the deepwater Gulf of Mexico. 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. 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. Financial statement is attached. -0-
BURLINGTON RESOURCES INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Third Quarter Nine Months
1998 1997 1998 1997
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(In Millions, Except per Share Amounts)
Revenues $390 $464 $1,234 $1,459
Costs and Expenses 349 348 1,030 1,043
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Operating Income 41 116 204 416
Interest Expense 39 36 111 106
Other Income - Net 8 2 13 55
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Income Before Income Taxes 10 82 106 365
Income Tax Expense (Benefit) (5) 17 20 83
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Net Income $15 $65 $86 $282
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Basic Earnings per Common Share $.08 $.37 $.48 $1.60
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Diluted Earnings per Common Share $.08 $.37 $.48 $1.59
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Basic Common Shares 177 176 177 177
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Diluted Common Shares 178 177 178 178
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This statement of income should be read in conjunction with the
attached press release.
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