Burlington Resources Announces Record First Quarter 2001 Results.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--April 18, 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 record quarterly net income of $336 million for the first quarter of 2001 or $1.56 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 . 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, is also estimated to be a quarterly record of $673 million. For the same period last year, the Company had net income of $77 million or $.35 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. Discretionary cash flow for the first quarter of 2000 was $411 million. Natural gas sales averaged 2,009 million cubic feet per day (Mmcfd) during the first quarter of 2001 compared to 2,121 Mmcfd in the same period last year, but up 5 percent versus fourth quarter 2000. Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. gas production was particularly strong, increasing 19 percent compared to fourth quarter 2000 and 14 percent compared to last year's first quarter. Canadian production performance was primarily due to aggressive tie-in tie-in n. One thing that is related to or connected with another. Noun 1. tie-in - a fastener that serves to join or connect; "the walls are held together with metal links placed in the wet mortar during construction" and first delivery from the 2000 / 2001 winter drilling programs. First quarter 2001 oil volumes totaled 69,800 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 90,600 barrels per day in 2000's first quarter. Gas price realizations were $5.32 per thousand cubic feet (Mcf) in the first quarter of 2001, up 106 percent in comparison to $2.58 per Mcf in the first quarter of 2000. Oil price realizations rose 11 percent from $23.73 per barrel in 2000's first quarter to $26.43 per barrel in the same period for 2001. Total exploration expense for the first quarter of 2001 totaled $70 million. During this period, the Company participated in the drilling of four deepwater Deepwater or Deep Water may refer to:
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 wells. Two of the wells, located in East Breaks Blocks 599 (Hack Wilson
BAHA British Activity Holiday Association ) and Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by Canyon Block 876 (Callisto), are still under evaluation by the partners. The Company, however, has decided to expense all costs incurred to date on BAHA and Callisto in the current period. The Company announced two Canadian property acquisitions in January 2001. Totaling approximately US $385 million, the acquisition of Petrobank's Alder alder (ôl`dər), name for deciduous trees and shrubs of the genus Alnus of the family Betulaceae (birch family), widely distributed, especially in mountainous and moist areas of the north temperate zone and in the Andes. Flats and Cynthia properties and the ATCO ATCO Air Traffic Control Officer ATCO Association of Transport Coordinating Officers (UK) ATCO Air Tanker/Fixed Wing Coordinator ATCO Aviation Transportation Coordination Office ATCO Air Taxi and Commercial Operator Viking-Kinsella properties represents the addition of approximately 300 BCF BCF Billion Cubic Feet BCF Bioconcentration Factor BCF British Chess Federation BCF British Coatings Federation BCF Breast Cancer Fund BCF Bank Credit Facility BCF Bulked Continuous Filament BCF British Cycling Federation BCF Boeing Converted Freighter of 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. and 379,000 net acres, a significant portion of which is undeveloped. The Petrobank transaction closed in January and the ATCO transaction is expected to close by mid-year, pending regulatory approvals. During the first quarter of 2001, the Company continued to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. its common shares under a standing $1 billion authorization The right or permission to use a system resource; the process of granting access. See access control. . As of March 31st, the Company had repurchased 5.2 million shares during 2001 at an average purchase price of $46.06 per share. 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, "With record levels of earnings and cash flow in the first quarter, we have made a tremendous start to what is shaping up to be an exciting and profitable year. We have begun to see improvement in our production outlook and are particularly pleased with the contribution our Canadian operation is making, as evidenced by its production performance in the first quarter. Our two latest acquisitions will help us build on the growth platform we have established in Canada. We are also pleased with the apparent initial success we achieved in the first quarter with our deepwater Gulf of Mexico exploration program at Hack Wilson and LaSalle and with our activity under our share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program." Remaining Year Outlook Generally, for any given year, the Company estimates second and third quarter production to be lower than first and fourth quarters because of scheduled facilities maintenance, seasonal access restrictions in Canada and possible disruptions caused by tropical storm tropical storm n. A cyclonic storm having winds ranging from approximately 48 to 121 kilometers (30 to 75 miles) per hour. tropical storm activity in the Gulf of Mexico. The Company expects second quarter 2001 natural gas production to be in the range of 1,800 to 1,950 Mmcfd. Second quarter 2001 oil production is estimated to be in the range of 60 to 66 thousand barrels per day (Mbd). Full year 2001 average gas production is estimated to be in the range of 1,800 to 2,000 Mmcfd, with oil production expected to average 57 to 65 Mbd. The geographic breakdown for natural gas is as follows:
2nd Quarter 2001 Full Year 2001
Estimate Estimate
Gas (Mmcf per day)
U.S. 1,280 - 1,350 1,260 - 1,360
Canada 420 - 470 420 - 480
Other International 100 - 130 120 - 160
------------ ---------------
Total 1,800 - 1,950 1,800 - 2,000
Preliminary estimates for exploration expense are in the range of $65 to $75 million for the second quarter of 2001 and $250 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. On a gas equivalent per unit basis, second quarter and full year 2001 total cash costs, excluding production taxes, are not anticipated to change significantly from first quarter 2001. Production taxes will vary with changes in commodity prices. Depreciation, depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able and amortization expense is expected to increase slightly from first quarter, averaging between $.80 and $.85 per thousand cubic feet of gas equivalent for the second quarter and full year 2001. 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 properties 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)
FIRST QUARTER
---------------
2001 2000
------ ------
(In Millions, Except per Share Amounts)
Revenues $1,143 $708
------ ------
Costs and Expenses
Production Taxes 63 33
Transportation Expense 63 55
Production and Processing 120 116
Depreciation, Depletion
and Amortization 170 180
Exploration Costs 70 98
Administrative 46 39
------ ------
Total Costs and Expenses 532 521
------ ------
Operating Income 611 187
Interest Expense 45 50
Other Expense - Net 9 --
------ ------
Income Before Income Taxes 557 137
Income Tax Expense 224 60
------ ------
Net Income Before Cumulative
Effect of Change in
Accounting Principle 333 77
Cumulative Effect of Change
in Accounting Principle - Net 3 --
------ ------
Net Income $336 $77
====== ======
Earnings per Common Share
Basic
Before Cumulative Effect of
Change in Accounting Principle $1.56 $.36
Cumulative Effect of Change in
Accounting Principle - Net .01 --
------ ------
Net Income $1.57 $.36
====== ======
Diluted
Before Cumulative Effect of Change
in Accounting Principle $1.55 $.35
Cumulative Effect of Change in
Accounting Principle - Net .01 --
------ ------
Net Income $1.56 $.35
====== ======
Basic Common Shares 214 216
====== ======
Diluted Common Shares 215 216
====== ======
This statement should be read in conjunction with the attached
press release.
BURLINGTON RESOURCES INC.
SALES VOLUMES AND PRICES
2001 2000 Total Year
------- ------------------------------ -----------------
First First Second Third Fourth
Quarter Quarter Quarter Quarter Quarter 2000 1999 1998
----------------------------------------------------------
Daily Sales
Gas (MMCF/Day)
Domestic 1,360 1,535 1,470 1,382 1,380 1,441 1,487 1,580
Canada 479 419 379 387 403 397 429 430
Other
Interna-
tional 170 167 114 80 128 122 88 67
--------------------------------------------------------
Total 2,009 2,121 1,963 1,849 1,911 1,960 2,004 2,077
--------------------------------------------------------
Oil (MBBLS/Day)
Domestic 45.5 60.8 51.2 48.8 45.9 51.6 57.3 66.2
Canada 16.3 18.3 17.1 16.8 15.8 17.0 19.4 21.8
Other
Interna-
tional 8.0 11.5 11.0 7.8 8.0 9.6 13.2 16.5
--------------------------------------------------------
Total 69.8 90.6 79.3 73.4 69.7 78.2 89.9 104.5
--------------------------------------------------------
Average Prices
Gas ($/MCF)
Domestic $4.98 $2.64 $2.70 $3.26 $4.47 $3.25 $2.49 $2.19
Canada 6.96 2.63 3.09 4.05 6.04 3.96 1.76 2.12
Other
Interna-
tional 2.94 1.90 2.17 2.31 2.58 2.16 1.93 2.56
--------------------------------------------------------
Combined
including
hedging 5.32 $2.58 $2.75 $3.37 $4.68 $3.32 $2.33 $2.19
Effect of
hedging
gain (loss) (1.60) .05 (.32) (.62) (.76) (.40) .05 .06
--------------------------------------------------------
Combined
before
hedging
gain (loss) $6.92 $2.53 $3.07 $3.99 $5.44 $3.72 $2.28 $2.13
--------------------------------------------------------
Oil ($/BBL)
Domestic $24.48 $22.90 $24.74 $25.37 $23.96 $24.18 $16.70 $13.34
Canada 30.71 24.48 24.79 31.13 31.29 27.80 18.36 12.44
Other
Interna-
tional 24.48 26.96 25.12 29.43 30.74 27.73 17.00 13.16
--------------------------------------------------------
Combined
including
hedging 26.43 $23.73 $24.80 $27.12 $26.39 $25.40 $17.12 $13.13
Effect of
hedging
gain (loss) (1.72) (3.24) (1.58) (2.33) (2.63) (2.46) (.19) .52
--------------------------------------------------------
Combined
before
hedging
gain (loss) $28.15 $26.97 $26.38 $29.45 $29.02 $27.86 $17.31 $12.61
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