Canadian Occidental Petroleum Ltd. reports record cash flow, net income and production for 1994 and declaration of the quarterly dividend.CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Alberta--(BUSINESS WIRE)--Feb. 28, 1995--Canadian Occidental Petroleum Occidental Petroleum Corporation ("Oxy") NYSE: OXY is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America regions. Ltd. reports a 133 per cent increase in cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for 1994. Consolidated cash flow reached a company record $493 million ($7.35 per common share) for 1994 compared to $212 million ($3.17 per common share) for 1993. Cash flow for the fourth quarter of 1994 was $142 million ($2.12 per common share) compared to $63 million ($0.94 per common share) in the fourth quarter of 1993. Net income in 1994 was $96 million ($1.44 per common share) compared to $7 million ($0.10 per common share) in 1993. During the fourth quarter, net income was $29 million ($0.44 per common share) compared to a loss of $7 million ($0.10 per common share) in the fourth quarter of 1993. These results reflect significant production increases in the International and North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Oil and Gas Divisions, high operating rates Operating rate The percentage of total production capacity of a company, industry, or country that is being used. operating rate The portion of capacity at which a business operates. and attractive chlorine chlorine (klōr`ēn, klôr`–) [Gr.,=green], gaseous chemical element; symbol Cl; at. no. 17; at. wt. 35.453; m.p. −100.98°C;; b.p. −34.6°C;; density 3.2 grams per liter at STP; valence −1, +1, +3, +5, +7. prices in the Chemicals Division and the effects of cost controls and reductions in all Divisions. Company-wide crude oil production averaged 119,000 barrels of crude oil per day (43 million barrels per year) during 1994, compared to 54,000 barrels of crude oil per day (20 million barrels per year) in 1993. Oil production growth was most dramatic in the International Division, which exited 1994 producing over 92,000 barrels of crude oil per day. The bulk of this growth was from the Masila Project in Yemen Yemen (yĕm`ən), officially Republic of Yemen, republic (2005 est. pop. 20,727,000), 207,300 sq mi (535,800 sq km), SW Asia, at the southern edge of the Arabian peninsula. . The North American Division also recorded rapid growth, with production averaging 10 per cent higher than 1993. At year end, the North American Division was producing 37,000 barrels of crude oil per day. United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. operations 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 accounted for most of this increase. Natural gas production increased 7 per cent to average 241 million cubic feet per day (88 billion cubic feet per year). This was primarily due to a full year of production from the Caister Caister may refer to:
CanadianOxy continued its record of low cost reserve additions in 1994. Worldwide proved and probable reserves increased by 75 million barrels of oil equivalent in 1994 to 726 million barrels. Over the past five years, CanadianOxy has added over 330 million barrels of oil equivalent of proven and probable reserves at an average reserve replacement cost of U.S. $2.56 per barrel. Total crude oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints. Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally increased 90 million barrels to 588 million barrels. Proven reserves increased 27 million barrels to 376 million barrels for a reserve replacement rate of 162 per cent. The North American Division was a key contributor with proven oil reserves increasing 23 per cent to 200 million barrels. The International Division recorded a 10 million barrel decrease in proven crude oil reserves. This was due to delays in CanadianOxy's Yemen drilling program caused by the civil war during May and June June: see month. and the early stage of the Company's other international exploration and development projects. In total, probable crude oil reserves increased 63 million barrels to 212 million barrels as a result of field extensions in Yemen and at Syncrude This article is about Syncrude Canada Ltd.. For synthetic crude oil, see synthetic crude. Syncrude Canada Ltd. is the world's largest producer of synthetic crude oil from oil sands and the largest single source producer in Canada. and the acquisition and development of a project in Kazakhstan Kazakhstan or Kazakstan (kä'zäkstän`), officially Republic of Kazakhstan, republic (2005 est. pop. 15,186,000), c.1,050,000 sq mi (2,719,500 sq km), central Asia. . Total natural gas reserves decreased 10 per cent to 827 billion cubic feet at year end. Proven natural gas reserves decreased 12 per cent to 630 billion cubic feet. The majority of this occurred in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. where CanadianOxy produced over 73 billion cubic feet and divested a further 37 billion cubic feet. In the Chemicals Division, all facilities operated at effective capacity throughout the year. Sodium chlorate sodium chlorate n. A colorless crystalline compound, NaClO3, used as a bleaching and oxidizing agent and in explosives. sodium chlorate Noun sales increased six per cent compared to 1993, while sodium chlorate and chlorine prices firmed, leading to a 37 per cent increase in divisional cash flow to $42 million. With major development projects in Yemen, Ecuador Ecuador (ĕk`wədôr) [Span., = equator], officially Republic of Ecuador, republic (2005 est. pop. 13,364,000), 109,483 sq mi (283,561 sq km), W South America. and the North Sea largely completed and onstream OnStream Holdings of the Netherlands was spun off from Philips in 1998 and went bankrupt for a second time in 2003. [1] As a result of its first bankruptcy in 2001, the company was split into two parts, OnStream Data and OnStream MST. by the beginning of 1994, capital expenditures moderated to $264 million from $632 million in 1993. CanadianOxy accomplished a number of strategic objectives in 1994:
o In the North Sea, the Company's presence was significantly
enhanced by the acquisition of interests in nine additional
blocks in the Southern Gas Basin. Evaluation of the
significant exploration and development potential of these
blocks will begin in 1995.
o In Kazakhstan, CanadianOxy acquired a 40 per cent interest in
and operatorship of an appraisal and development project in
the South Turgai Basin. CanadianOxy drilled four wells and
recompleted three wells in 1994 with better than anticipated
results. The Company expects to reach a decision on full
development of this project this year.
o In Yemen, CanadianOxy negotiated an extension of the
exploration license to December 15, 1995. This provides ample
time to fully explore the potential of the area adjacent to
the Core Area, East Masila and the coast. The Core Area
operates under a 20 year production license. In the event of
exploration success, the agreement provides for a further
fifteen month extension to determine the commerciality of the
discovery.
o In Vietnam, CanadianOxy also acquired a 100 per cent interest
in a high potential exploration project. This project will be
tested with a well in late 1995 or early 1996.
o In North America, the Company made significant progress on its
rationalization program, increasing its focus on core areas
through selected acquisitions and dispositions.
In total, CanadianOxy expects to invest $400 million of capital in 1995. Approximately 90 per cent of this capital will be invested by the oil and gas divisions, with about 33 per cent invested in exploration. Oil and gas investments will be split equally between North America and International. In addition to the North Sea, Kazakhstan and Vietnam Vietnam (vēĕt`näm), officially Socialist Republic of Vietnam, republic (v), 128,400 sq mi (332,642 sq km), Southeast Asia. Occupying the eastern coastline of the Southeast Asian peninsula, Vietnam is bounded by China on the north, by Laos projects, the international program will feature exploration drilling in Yemen, Romania Romania (rōmān`ēə, –yə) or Rumania (r  –), republic (v), 91,699 sq mi (237,500 sq km), SE Europe. and Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. . New exploration and development opportunities in
the sub-Andean basin of 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. as well as opportunities in the
Far East and North Africa are also under review. In North America,
exploration and development spending will increase in both the United
States and Canada. North American exploration expenditures are targeted
primarily at increasing natural gas reserves while development
expenditures will focus on increasing production from existing fields.At year end net debt was approximately $860 million, compared to $1,020 million at year end 1993. CanadianOxy intends to use surplus cash flow to further reduce debt in 1995. Based upon the 1995 budget, the Company expects to achieve a net debt to cash flow ratio of one by early 1996. Bernard Ber·nard , Claude 1813-1878. French physiologist noted for his study of the digestive and nervous systems. Isautier, President and Chief Executive Officer commented "When you consider the adversity ad·ver·si·ty n. pl. ad·ver·si·ties 1. A state of hardship or affliction; misfortune. 2. A calamitous event. we faced in 1994, depressed oil prices early in the year, the Yemen civil war in May and June and depressed gas prices over the last six months, our performance speaks highly of the caliber of our employees and the quality of our operations and strategy. I am proud to be able to report these results to our shareholders." The Board of Directors has declared the regular quarterly dividend of ten cents Ten Cents has several meanings:
FINANCIAL HIGHLIGHTS
(Amounts in millions of Canadian dollars except per share data)
Three Months Twelve Months
-----------------------------------------------------------------
1994 1993 1994 1993
-----------------------------------------------------------------
Net Sales $269.8 $207.6 $1,015.2 $625.0
Net Earnings 29.4 (6.6) 96.3 6.8
Per common share 0.44 (0.10) 1.44 0.10
Funds flow from operations
before exploration expense 142.4 63.0 493.2 212.1
Per common share 2.12 0.94 7.35 3.17
Capital and exploration
expenditures 79.3 94.5 263.8 631.8
BUSINESS SEGMENTS INFORMATION
(Amounts in thousands of Canadian dollars)
Three Months Twelve Months
-----------------------------------------------------------------
1994 1993 1994 1993
-----------------------------------------------------------------
Operating Profits
Oil and Gas
North America
United States $2,354 $8,115 $28,536 $33,725
Canada 25,638 7,347 52,341 20,526
Alternate Fuels 1,995 (1,029) 17,138 6,871
-----------------------------------------------------------------
29,987 14,433 98,015 61,122
International
Republic of Yemen 41,623 18,596 136,807 14,571
North Sea 6,250 4,375 20,538 20,310
South America 1,897 (6,224) 6,174 (7,128)
Other (15,002) (1,485) (34,881) (18,400)
-----------------------------------------------------------------
34,768 15,252 128,638 9,353
Total Oil and Gas 64,755 29,685 226,653 70,475
Chemicals 4,954 2,417 28,035 14,035
-----------------------------------------------------------------
69,709 32,102 254,688 84,510
Less:
Corporate expense and
interest 21,951 37,070 94,006 67,817
Income taxes 18,360 1,609 64,377 9,943
-----------------------------------------------------------------
Net Income $29,398 ($6,577) $96,305 $6,750
=================================================================
RESERVES SUMMARY
for the year ended December 31, 1994
-------------------------------------------------------------
Proved Probable Total
Gross Net Gross NetGross Net
-------------------------------------------------------------
Conventional and
Synthetic Crude
Oil, Condens-
ate and Natu-
ral Gas Liquid
(thousand
barrels)
International
Republic of
Yemen 153,559 153,559 125,078 125,078 278,637 278,637
North Sea 530 544 544 544 1,074 1,074
S. America 17,790 17,790 2,731 2,731 20,521 20,521
Other 4,100 3,977 50,410 48,898 54,510 52,875
N. America
United States 18,795 15,567 3,911 3,421 22,708 18,988
Canada 22,903 18,469 7,719 6,296 30,622 24,765
Alt. Fuels 157,855 146,962 21,845 20,338 179,700 167,300
------- ------- ------- ------- ------- -------
375,532 356,854 95,384 95,384 247,577 247,577
======= ======= ======= ======= ======= =======
Natural Gas
(million cubic
feet)
International
North Sea 152,193 152,193 95,384 95,384 247,577 247,577
N. America
United States 133,276 107,995 7,729 6,483 141,005 114,478
Canada 344,909 278,700 93,924 66,573 438,833 345,273
------- ------- ------- ------- ------- -------
630,378 278,700 197,037 168,440 827,415 707,328
======= ======= ======= ======= ======= =======
CONTACT: Mark Houser, (403) 234-2022 Kevin Finn, (403)234-1932 |
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