Canadian Occidental Petroleum Ltd.- reports record first quarter production and cash flow 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)--May 2, 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 75% increase in cash flow for the quarter ended March 31, 1995, to a Company record $150 million ($2.24 per common share). This compares to first quarter 1994 results of $86 million ($1.28 per common share). Net income also increased, totaling $30 million ($0.45 per common share). This compares to $10 million ($0.15 per common share) during the comparable period of 1994. CanadianOxy significantly enhanced its financial flexibility during the quarter. At the end of the quarter, net debt totaled $762 million, a reduction of $98 million during the first quarter of 1995 and a reduction of $283 million over the past 12 months. Crude oil production achieved record levels, averaging 125,600 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 109,800 barrels in the first quarter of 1994. Natural gas production averaged 238 million cubic feet per day, compared to 252 million cubic feet per day for the comparable period of 1994. The International Division was a major contributor to these improved results with substantially higher crude production. International crude production increased to 89,600 barrels per day in the first quarter from 73,900 barrels per day last year. The majority of this increase was from 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. where production from the CanadianOxy operated Masila project reached peaks as high as 188,000 barrels per day; the Company's share averaged 85,000 barrels per day. Cash flow generated by the International Division reached $121 million, a 70% increase over the first quarter of 1994, while operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. reached $42 million, a 75% increase. The International Division drilled two successful exploration wells during the quarter. The Doina-2 well on Block XV, offshore Romania Romania (rōmān`ēə, –yə) or Rumania (r  –), republic (v), 91,699 sq mi (237,500 sq km), SE Europe. was
production tested at a total flow rate of 17.5 million cubic feet of
natural gas per day. Two additional wells are planned to test separate
structures on the Block. In Yemen, the West Hemiar-2 well successfully
tested a stratigraphic stra·tig·ra·phy n. The study of rock strata, especially the distribution, deposition, and age of sedimentary rocks. strat trap in the Core Area of the Masila Block. The well encountered approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 13 feet of net pay and is currently being production tested. CanadianOxy enhanced its portfolio of high potential exploration projects during the first quarter through a farm-in on two production sharing contracts in the Arafura Basin of eastern 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. . CanadiaOxy acquired a 26.7% working interest in the Kai kai Noun NZ informal food [Maori] kai noun N.Z. (informal) food, grub (slang) provisions, fare, board, commons, eats (slang and Barakan blocks which together comprise an area of 4.7 million acres, and has an option to acquire a similar interest in the adjacent Tanimbar and Rebi REBI Reserve Enlisted Basic Indoctrination (US Coast Guard) blocks. These provide CanadianOxy with exposure to giant prospects along an unexplored Mesozoic trend which has yielded major discoveries to the north and south. The first exploration well on the blocks will commence drilling in late May or early June June: see month. . North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. oil and gas operations also made material contributions to first quarter results. North American oil production was unchanged at 36,000 barrels per day, while natural gas production was reduced by 9 million cubic feet per day, primarily due to the pending sale of non-core properties in the 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. , to average 188 million cubic feet per day. However, improved crude prices and the settlement of a natural gas underlift resulted in substantially improved results compared to 1994, with cash flow increasing by 18% and operating profit increasing by 95% over the first quarter of 1994. The Chemicals Division continues to generate improved results. All facilities operated at effective capacity throughout the quarter and sodium chlorate sodium chlorate n. A colorless crystalline compound, NaClO3, used as a bleaching and oxidizing agent and in explosives. sodium chlorate Noun and caustic soda caustic soda: see sodium hydroxide. caustic soda Sodium hydroxide (NaOH), an inorganic compound. The alkalies called caustic soda and caustic potash (potassium hydroxide) are very important industrial chemicals, with uses in the manufacture of prices were substantially better than those of a year ago. Cash flow reached $17 million, an increase of 87% relative to the first quarter of 1994. Subject to satisfaction of certain closing conditions, CanadianOxy has established a new chemical partnership with Occidental oc·ci·den·tal or Oc·ci·den·tal adj. Of or relating to the countries of the Occident or their peoples or cultures; western. n. A native or inhabitant of an Occidental country; a westerner. Noun 1. Chemical Corporation. The transaction will strengthen CanadianOxy's strategic position in the North American bleaching bleaching, process of whitening by chemicals or by exposure to sun and air, commonly applied to textiles, paper pulp, wheat flour, petroleum products, oils and fats, straw, hair, feathers, and wood. chemical business. The partnership combines CanadianOxy's industrial bleaching chemicals business with Occidental's sodium chlorate production facility at Taft, Louisiana Taft is a town located in St. Charles Parish, Louisiana, on the West Bank of the Mississippi River, which, according to the 2000 census, has a total population of 0. History This town is the location of a phosphate mining facility owned by IMC-Agrico. . The Taft facility, located in the heart of the largest North American sodium chlorate market, is currently undergoing a capacity expansion from 61,000 short tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. per year to 127,000 short tons per year. When the Taft expansion is completed in early July July: see month. , the partnership will be a very significant sodium chlorate supplier 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. . CanadianOxy has an 85% interest in the venture and is the managing partner. Commenting on the first quarter, Bernard Ber·nard , Claude 1813-1878. French physiologist noted for his study of the digestive and nervous systems. Isautier, President and Chief Executive Officer said "I am very pleased with the performance of each of the Company's operations and our progress in achieving strategic objectives. The success of exploration in Romania and Yemen is encouraging. Longer term, the Indonesian farm-in complements our portfolio of high potential exploration projects in southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. and gives us a broader presence in an attractive area. The Chemicals Division's expansion in the United States will result in significant operating synergies, creating an efficient new player in the North American chlorate chlorate (klōr`āt, klôr`–) and perchlorate (pərklōr`āt, –klôr`–), salts of chloric acid, HClO3, and perchloric acid, HClO4, respectively. industry." The Board of Directors has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. 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
1995 1994
----------------------------
Net Sales $ 278.0 $ 222.9 Net Income 30.3 10.1 Per common share 0.45 0.15 Funds flow from operations before exploration expense 150.4 85.8 Per common share 2.24 1.28 Capital and exploration expenditures 62.9 60.5 Business Segment Information (Amounts in thousands of Canadian dollars)
Three Months
1995 1994
----------------------------
Operating Profit
Oil and Gas
North America
United States $ 10,768 $ 6,395
Canada 6,672 5,887
Alternate Fuels 2,393 (2,113)
----------------------------
19,833 10,169
International
Republic of Yemen 46,117 20,956
North Sea 425 7,751
South America 1,374 1,291
Other (6,078) (6,038)
----------------------------
41,838 23,960
----------------------------
Total Oil and Gas 61,671 34,129
Chemicals 12,743 9,116
-----------------------------
74,414 43,245
Corporate Expenses and Interest (22,573) (27,162)
Income Taxes (21,536) ( 5,951)
-----------------------------
Net Income $ 30,305 $ 10,132
-----------------------------
Business Segment Information (Amounts in thousands of Canadian dollars)
Three Months
1995 1994
-----------------------------
Funds flow from operations
Oil and Gas
North America
United States $ 25,502 $ 22,176
Canada 19,174 18,837
Alternate Fuels 4,162 376
-----------------------------
48,838 41,389
-----------------------------
International
Republic of Yemen 104,394 57,690
North Sea 17,071 15,807
South America 2,368 1,933
Other (2,446) (3,890)
-----------------------------
121,387 71,540
-----------------------------
Total Oil and Gas 170,225 112,929
Chemicals 17,319 9,249
-----------------------------
187,544 122,178
Corporate Expenses and Interest (20,375) (24,064)
Income Taxes (16,764) (12,336)
-----------------------------
Total $150,405 $ 85,778
-----------------------------
Production Highlights
Three Months
1995 1994
-----------------------------
Natural Gas (millions of cubic
feet per day)
North America
United States 57.6 74.1
Canada 130.6 123.4
International
North Sea 49.9 54.1
-----------------------------
238.1 251.6
-----------------------------
Crude Oil, Condensate and
Natural Gas Liquids (thousands
of barrels per day)
North America
United States 11.7 11.4
Canada 12.0 11.0
Alternate Fuels 12.3 13.5
International
Republic of Yemen 85.0 69.9
South America 4.4 3.8
Other 0.2 0.2
-----------------------------
Total 125.6 109.8
-----------------------------
Average Commodity Prices Received
Three Months
1995 1994
-----------------------------
Natural Gas (per thousand cubic
feet)
North America
United States $ 2.43 $ 3.31
Canada 1.16 2.28
International
North Sea 4.50 4.25
Corporate Average 2.13 3.00
Crude Oil (per barrel)
North America
United States $ 24.31 $ 16.63
Canada 21.60 13.18
International
Republic of Yemen 23.15 16.46
South America 14.33 14.05
Corporate Average 22.78 16.05 Synthetic Crude Oil (per barrel) $ 24.32 $ 17.52 CONTACT: Kevin KEVIN Keepers of the Eternal Vigilance of the Islamic Nation (fictional, from White Teeth by Zadie Smith) Finn, (Shareholder Inquiries), (403) 234-1932 John McWilliams, (Media Inquiries), (403) 234-6729 |
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