CORRECTING and REPLACING Burlington Resources Achieves Record Quarterly Production and 32 Percent Increase in First-Quarter Earnings to $354 Million.Energy Editors/Business Editors CORRECTION CORRECTION,punishment. Chastisement by one having authority of a person who has committed some offence, for the purpose of bringing him to legal subjection. 2. It is chiefly exercised in a parental manner, by parents, or those who are placed in loco parentis. ...by 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--(BUSINESS WIRE)--April 21, 2004 In BW6118 issued April 21, 2004: Please replace the release with the following corrected version due to multiple revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. . The corrected release reads: BURLINGTON RESOURCES ACHIEVES RECORD QUARTERLY PRODUCTION AND 32 PERCENT INCREASE IN FIRST-QUARTER EARNINGS TO $354 MILLION Burlington Resources Inc. (NYSE NYSE See: New York Stock Exchange :BR) and (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :B) today reported estimated earnings during the first quarter of 2004 of $354 million, or $1.78 per 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. share, a 32 percent increase over the $269 million, or $1.33 per diluted share, earned during the first quarter of 2003. Included in the 2003 results was a non-cash after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge of $59 million, or $0.29 per share, for a change in accounting principle related to future asset retirement obligations Asset Retirement Obligations provide for future disposal of assets as required by SFAS 143 [1]. Firms must recognize the ARO liability in the period it was acquired, generally acquisition. . The increase in 2004 first-quarter earnings was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a 14 percent rise in total production to a new quarterly record of 2,849 million cubic feet of natural gas equivalent per day (MMcfed), from 2,490 MMcfed during the prior year's quarter. Commodity price realizations were essentially flat. Net cash provided by operating activities increased to $742 million from $589 million during the prior year's quarter. 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. (1) increased to $812 million from $721 million during the prior year's quarter. In addition, at the end of the first quarter the company's balance sheet included more than $1 billion in cash and cash equivalents, an increase of $270 million during the quarter. Share repurchases 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. during the quarter totaled approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1.6 million shares for $90 million at an average cost of $58.10 per share. This brings the cumulative number of shares acquired since the late-2000 resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of Burlington's share repurchase program to more than 25.2 million shares for $1 billion, or an average cost of $45.31 per share. "These outstanding results confirm that we are entering what we believe will be a period of sustainable growth for our company," said Bobby S. Shackouls, chairman, president and chief executive officer. "Our North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. core properties continue performing strongly, while the major international development programs are ramping up during a very favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. price window. Our progress as well as our future prospects give us confidence in our goal of generating 20 percent cumulative production growth during the three-year period beginning with 2004." Burlington's first-quarter production growth included a 4 percent increase in natural gas production to 1,953 million cubic feet per day (MMcfd), from 1,872 MMcfd during the prior year's quarter. Natural gas liquids (NGLs) production increased 5 percent to 66.9 thousand 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. (Mbd), from 63.7 Mbd during the prior year's quarter. Crude oil production increased 110 percent to 82.4 Mbd, from 39.3 Mbd during the prior year's quarter. The substantially higher crude oil volumes were attributable to higher production from 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 BASIN Boulder Area Sustainability Information Network (Boulder, Colorado) BASIN Brothers And Sisters In Need in the U.S., and from start-ups during 2003 of several fields located in Algeria Algeria (ăljēr`ēə), Arab. Al Djazair, Fr. Algérie, officially People's Democratic Republic of Algeria, republic (2005 est. pop. , China and elsewhere. Increases in natural gas and NGLs production resulted primarily from higher volumes in the Barnett Shale The Barnett Shale is a geological formation of economic significance. It consists of sedimentary rocks of Mississippian age in the U.S. State of Texas. The formation is estimated to stretch from the city of Dallas to west of the city of Fort Worth and south, covering 5,000 square trend in North Texas, and from properties in South Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. and Northwestern north·west n. 1. Abbr. NW The direction or point on the mariner's compass halfway between due north and due west, or 45° west of due north. 2. An area or region lying in the northwest. 3. Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . During
the quarter Burlington Burlington, town, CanadaBurlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. conducted ongoing development in virtually all its major properties. The company's realizations for natural gas were $5.31 per Mcf, compared to $5.29 per Mcf during the same quarter in 2003. Price realizations for NGLs were $22.08 per barrel barrel: see English units of measurement. , compared to $22.07 per barrel during the prior year's quarter. Crude oil price realizations were $29.57 per barrel, down from $29.74 per barrel during the prior year's quarter. 2004 Outlook Production -- Burlington expects strong volume growth compared to 2003, as a result of anticipated increases in both North American and international production. The guidance breakdown breakdown /break·down/ (brak´doun) 1. the act or process of ceasing to function. 2. an often sudden collapse in health. 3. loss of self-control. by geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. region and product follows:
2nd-Quarter 2004 Full-Year 2004
Estimate Estimate
-------- --------
Gas (MMcfd)
U.S. 840 - 885 860 - 905
Canada 825 - 860 825 - 865
Other International 140 - 170 185 - 230
--------------- ----------------
Total 1,805 - 1,915 1,870 - 2,000
Natural Gas Liquids (Mbd)
U.S. 39.5 - 42.5 40.0 - 42.0
Canada 25.5 - 27.0 25.0 - 27.0
Other International 0.0 - 0.0 0.0 - 0.0
--------------- ----------------
Total 65.0 - 69.5 65.0 - 69.0
Crude Oil (Mbd)
U.S. 32.5 - 34.2 32.5 - 35.0
Canada 5.0 - 5.5 5.0 - 5.5
Other International 31.0 - 39.0 35.0 - 41.0
--------------- ----------------
Total 68.5 - 78.7 72.5 - 81.5
--------------- ----------------
Total Equiv. Prod.
(MMcfed) 2,606 - 2,804 2,695 - 2,903
--------------- ----------------
--------------- ----------------
North American Natural Gas Hedges -- As of April 14, 2004, Burlington had hedged hedge n. 1. A row of closely planted shrubs or low-growing trees forming a fence or boundary. 2. A line of people or objects forming a barrier: a hedge of spectators along the sidewalk. the following volumes of future North American natural gas production using costless price collars or fixed price contracts. All prices are weighted averages adjusted to a NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). equivalent price using an estimate of differentials between the NYMEX price and regional prices. Detailed hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. information is available on Burlington's Web site at www.br-inc.com/docs/hedge.pdf.
2nd-Q. 2004 3rd-Q. 2004 4th-Q. 2004
----------- ----------- -----------
Costless collar volumes 419 MMcfd 306 MMcfd 266 MMcfd
Floor price $4.59/Mcf $4.71/Mcf $4.72/Mcf
Ceiling price $6.43/Mcf $6.49/Mcf $6.64/Mcf
Sell swaps 39 MMcfd 39 MMcfd 39 MMcfd
Sales price $3.58/Mcf $3.63/Mcf $3.61/Mcf
Fixed price sales 45 MMcfd
Sale price $5.97/Mcf
Other 2004 Financial Parameters -- Estimated expenses for the second
quarter and full year are:
2nd -Q. 2004 Full-Year 2004
------------ ---------------
Operating costs(a) $0.55 to $0.59/Mcfe $0.52 to $0.56/Mcfe
Administrative costs $0.16 to $0.19/Mcfe $0.16 to $0.19/Mcfe
Transportation costs $0.42 to $0.46/Mcfe $0.41 to $0.45/Mcfe
Depletion, depreciation
& amortization $1.12 to $1.16/Mcfe $1.10 to $1.15/Mcfe
Interest expense $68 MM to $72 MM $275 MM to $280 MM
Exploration costs $55 MM to $75 MM $235 MM to $255 MM
(a) Formerly production and processing
In addition, Burlington anticipates an effective income tax rate of 33 to 37 percent for the full year of 2004. The breakdown between current and deferred taxes for the year could vary widely depending on commodity prices and other factors. An income statement, statistics and non-GAAP reconciliation tables for the first quarter accompany To go along with; to go with or to attend as a companion or associate. A motor vehicle statute may require beginning drivers or drivers under a certain age to be accompanied by a licensed adult driver whenever operating an automobile. this release. Burlington will webcast a conference call to discuss its first-quarter 2004 earnings and operations. The call will take place on Thursday Thursday: see week. , April 22 at 12 p.m. Central time. All materials and information related to the conference call, this press release and a package of financial and statistical information may be accessed from the Burlington Resources Web site home page (www.br-inc.com) by selecting the link entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "1st Qtr 2004 Conference Call Info INFO Information INFO Information (logging abbreviation) INFO Inform(ed/ation) INFO Ionic Difluoroamino Oxidizer Page," and then selecting the resource desired. Burlington Resources ranks among the world's largest independent oil and gas companies, and holds one of the industry's leading positions in North American natural gas reserves and production. 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 , the company conducts exploration, production and development operations in the U.S., Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , the United Kingdom, Africa, China and 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. . For additional information see the Burlington Resources Web site at www.br-inc.com. (1) See the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. tables for a reconciliation of GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). and non-GAAP measures utilized in calculating discretionary cash flow. 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.
Reconciliation of GAAP to Non-GAAP Measure (a)
Discretionary Cash Flow
($ in Millions)
Below is a reconciliation of net cash provided by operating activities
to discretionary cash flow.
First Quarter
-------------------------
2004 2003
------------ ------------
Net cash provided by operating activities $742 $589
Adjustments:
Working capital 63 122
Changes in other assets and liabilities 7 10
------------ ------------
Discretionary cash flow $812 $721
------------ ------------
------------ ------------
(a) GAAP - Generally Accepted Accounting Principles.
Management believes that the non-GAAP measure of discretionary cash
flow is useful information for investors because it is used internally
and accepted by the investment community as a means of measuring the
company's ability to fund its capital and dividend programs and to
service its debt. Discretionary cash flow is also useful because it is
widely used by professional research analysts in valuing, comparing
ratings and providing investment recommendations of companies in the
oil and gas exploration and production industry. Many investors use
this published research in making investment decisions.
BURLINGTON RESOURCES INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
FIRST QUARTER
---------------
2004 2003
------- -------
(In Millions,
Except per
Share Amounts)
Revenues $1,308 $1,128
------- -------
Costs and Other Income - Net
Taxes Other than Income Taxes 59 48
Transportation Expense 110 99
Operating Costs 131 102
Depreciation, Depletion and Amortization 277 203
Exploration Costs 60 68
Administrative 48 42
Interest Expense 71 64
(Gain)/Loss on Disposal of Assets 8 (1)
Other Expense (Income) - Net (3) 4
------- -------
Total Costs and Other Income - Net 761 629
------- -------
Income Before Income Taxes and Cumulative Effect of
Change in Accounting Principle 547 499
Income Tax Expense 193 171
------- -------
Income Before Cumulative Effect of Change in
Accounting Principle 354 328
Cumulative Effect of Change in Accounting Principle -
Net - (59)
------- -------
Net Income $354 $269
------- -------
------- -------
Earnings per Common Share
Basic
Before Cumulative Effect of Change in Accounting
Principle $1.79 $1.63
Cumulative Effect of Change in Accounting Principle
- Net - (0.29)
------- -------
Net Income $1.79 $1.34
------- -------
------- -------
Diluted
Before Cumulative Effect of Change in Accounting
Principle $1.78 $1.62
Cumulative Effect of Change in Accounting Principle
- Net - (0.29)
------- -------
Net Income $1.78 $1.33
------- -------
------- -------
Basic Common Shares 197 201
------- -------
------- -------
Diluted Common Shares 198 202
------- -------
------- -------
This statement should be read in conjunction with the attached press
release.
BURLINGTON RESOURCES INC.
SALES VOLUMES AND PRICES
2004 2003
------- ----------------------------------
First First Second Third Fourth
Quarter Quarter Quarter Quarter Quarter
Sales Volumes
Gas (MMCF/Day)
U.S. 880 867 875 848 870
Canada 846 852 868 873 876
Other International 227 153 136 168 211
----------------------------------------------------------------------
Worldwide 1,953 1,872 1,879 1,889 1,957
----------------------------------------------------------------------
NGLs (MBBLS/Day)
U.S. 40.8 35.7 34.6 35.9 43.1
Canada 26.1 28.0 28.5 27.1 26.1
----------------------------------------------------------------------
Worldwide 66.9 63.7 63.1 63.0 69.2
----------------------------------------------------------------------
Oil (MBBLS/Day)
U.S. 32.1 27.6 28.8 30.0 30.7
Canada 5.8 5.1 5.2 5.2 4.9
Other International 44.5 6.6 6.7 12.1 22.9
----------------------------------------------------------------------
Worldwide 82.4 39.3 40.7 47.3 58.5
----------------------------------------------------------------------
Total Equivalent
(MMCFE/D) 2,849 2,490 2,502 2,551 2,723
----------------------------------------------------------------------
Average Realized Prices
Gas ($/MCF)
U.S. $5.52 $5.27 $4.94 $4.91 $4.38
Canada 5.53 5.72 5.34 4.90 4.57
Other International 3.69 3.02 2.72 2.46 3.81
----------------------------------------------------------------------
Combined including hedging 5.31 5.29 4.96 4.68 4.40
Hedging loss (gain) (0.01) 0.23 0.07 0.04 0.03
----------------------------------------------------------------------
Combined before hedging $5.30 $5.52 $5.03 $4.72 $4.43
----------------------------------------------------------------------
NGLs ($/BBL)
U.S. $19.98 $19.54 $17.26 $17.81 $18.96
Canada 25.36 25.31 20.07 23.88 23.16
----------------------------------------------------------------------
Combined $22.08 $22.07 $18.53 $20.42 $20.54
----------------------------------------------------------------------
Oil ($/BBL)
U.S. $31.70 $30.87 $26.93 $27.66 $27.09
Canada 32.78 35.68 27.96 32.30 28.52
Other International 27.62 20.32 29.74 23.67 22.48
----------------------------------------------------------------------
Combined including hedging 29.57 29.74 27.53 27.16 25.40
Hedging loss (gain) 0.32 0.44 - - -
----------------------------------------------------------------------
Combined before hedging $29.89 $30.18 $27.53 $27.16 $25.40
----------------------------------------------------------------------
Year Ended
------------------------
2003 2002 2001
Sales Volumes
Gas (MMCF/Day)
U.S. 865 949 1,121
Canada 867 802 433
Other International 167 165 170
----------------------------------------------------------------------
Worldwide 1,899 1,916 1,724
----------------------------------------------------------------------
NGLs (MBBLS/Day)
U.S. 37.4 32.7 34.6
Canada 27.4 27.4 12.5
----------------------------------------------------------------------
Worldwide 64.8 60.1 47.1
----------------------------------------------------------------------
Oil (MBBLS/Day)
U.S. 29.3 35.4 44.0
Canada 5.1 7.8 11.9
Other International 12.1 5.9 7.3
----------------------------------------------------------------------
Worldwide 46.5 49.1 63.2
----------------------------------------------------------------------
Total Equivalent (MMCFE/D) 2,567 2,571 2,386
----------------------------------------------------------------------
Average Realized Prices
Gas ($/MCF)
U.S. $4.87 $3.39 $3.99
Canada 5.12 3.17 4.60
Other International 3.07 2.27 2.83
----------------------------------------------------------------------
Combined including hedging 4.83 3.20 4.03
Hedging loss (gain) 0.09 (0.16) 0.48
----------------------------------------------------------------------
Combined before hedging $4.92 $3.04 $4.51
----------------------------------------------------------------------
NGLs ($/BBL)
U.S. $18.42 $13.23 $14.75
Canada 23.08 15.92 22.50
---------------------------------------------------- -------- --------
Combined $20.40 $14.46 $16.79
---------------------------------------------------- -------- --------
Oil ($/BBL)
U.S. $28.08 $23.16 $22.63
Canada 31.11 28.32 26.51
Other International 23.49 24.30 23.42
----------------------------------------------------------------------
Combined including hedging 27.22 24.11 23.45
Hedging loss (gain) 0.09 (0.18) 1.10
----------------------------------------------------------------------
Combined before hedging $27.31 $23.93 $24.55
----------------------------------------------------------------------
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