Canadian Occidental Petroleum reports record first-quarter production, cash flow and net income, declaration of quarterly dividend and shareholder approval of a 2-for-1 share split.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 8, 1996--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 25 percent increase in cash flow and a 67 percent increase in net income for the quarter ended March 31, 1996, to a company record $188 million ($2.77 per common share) and $50 million ($0.73 per common share) respectively. These compare to cash flow of $150 million ($2.24 per common share) and net income of $30 million ($0.45 per common share) during the first quarter of 1995. Crude oil production also reached record levels, averaging 139,000 barrels of crude oil per day, compared to 125,600 barrels in the first quarter of 1995. Natural gas production averaged 243 million cubic feet per day, compared to 238 million cubic feet per day for the comparable period of 1995. The North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Division was a significant contributor to these results. North American crude production increased 15 percent to average 41,400 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. , while natural gas production increased 4 percent to average 196 million cubic feet per day. Combined with improved oil and gas prices, these production improvements increased cash flow for the division by 65 percent and 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. by 115 percent compared to the first quarter of 1995. The North American Division has an aggressive exploration and development program in progress. In 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 division acquired a 18.75 percent interest in Block EL 1008 on the west coast of Newfoundland Newfoundland, breed of dog Newfoundland, breed of massive, powerful working dog developed in Newfoundland, probably in the 17th cent., and later perfected in England. It stands from 25 to 28 in. (63.5–71. and is currently drilling an exploration well to test a significant structure which has been identified from seismic data. The well is expected to take approximately 100 days to drill. The division also commenced a 40 well exploration program on a 1 million acre block acquired in late 1995 in west central Saskatchewan Saskatchewan, province, Canada Saskatchewan (səskăch`əwən, –wän', săs'–), province (2001 pop. 978,933), 251,700 sq mi (651,903 sq km), W Canada. . Four successful appraisal wells were drilled in the first quarter. 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 , the division brought three new fields on stream adding 18 million cubic feet of gas per day. At Eugene Island Eugene Island is a submerged mountain 70-85 miles off the Louisiana coast in the Gulf of Mexico. The nearby oil field Eugene Island 330 is best known for its unusual depletion profile. According to the article "Sustainable Oil?" by Chris Bennett WorldNetDaily. , the first exploitation well on Block 259 was successfully drilled, encountering 69 feet of net oil and gas pay. The division expects to drill 30 wells in the Gulf of Mexico over the remainder of the year. The division was also the high bidder on 14 offshore lease blocks at the April Central Gulf Coast Lease sale. The International Division was again a major contributor. International crude production increased to 97,600 barrels per day in the first quarter from 89,600 barrels per day for the comparable period in 1995. This growth is attributable to 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. which averaged over 179,500 barrels per day (93,300 barrels per day net to CanadianOxy) for the quarter and set a new average monthly production record in March of 186,100 barrels per day (96,800 barrels per day net to CanadianOxy). Due to the timing of tanker loadings, crude inventories build up in Yemen over the quarter. As a result, International oil sales averaged 88,500 barrels per day in the first quarter and the division's cash flow was unchanged from the first quarter of 1995 at $122 million, while operating profit increased by $7 million to $48 million. The International Division is continuing to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. its assets and set the stage for future growth. During the quarter, it signed an agreement to assist in the development of the Ejulebe oil field, offshore Nigeria Nigeria (nījĭr`ēə), officially Federal Republic of Nigeria, republic (2006 provisional pop. 140,003,542), 356,667 sq mi (923,768 sq km), W Africa. and to explore the balance of this prospective block. The Ejulebe field is expected to commence production in 1997. The division also commenced drilling the first exploration well on Block 12W, offshore 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 . The well, which will take approximately two months to drill, is targeting a significant structure with the potential for multiple reservoirs. In the United Kingdom, an appraisal well on the Cavendish Cavendish (kăv`əndĭsh), pseud. of Henry Jones, 1831–99, English card game expert. Jones studied medicine, practiced in London, and retired in 1868. field commenced drilling. In Yemen, four development wells were drilled in the Core Area during the quarter. These wells were production tested at a combined rate of 33,000 barrels of oil per day. Outside of the Core Area, the exploration license governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. our activity on the coastal strip was extended to Sept. 15, 1996, to enable us to fully evaluate the area's potential. The Chemicals Division is growing rapidly. Despite weak pulp and paper markets, 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 37 percent due to a number of capacity expansions and acquisitions undertaken in 1995. Combined with firm sodium chlorates 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, divisional cash flow increased 18 percent to $20 million. Capital expenditures for the quarter totalled $174 million. In exchange for US $78 million, CanadianOxy reached an agreement with the government of Yemen which settles all outstanding matters including prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of future dismantlement dis·man·tle tr.v. dis·man·tled, dis·man·tling, dis·man·tles 1. a. To take apart; disassemble; tear down. b. and site restoration obligations, entitlement An individual's right to receive a value or benefit provided by law. Commonly recognized entitlements are benefits, such as those provided by Social Security or Workers' Compensation. to revenues for transportation of production from nearby fields, and approval of all costs incurred through December December: see month. 1995 as recoverable costs. The amount was recorded in the quarter as a capital expenditure. As a result, the Board of Directors has approved an increase in CanadianOxy's 1996 capital budget to approximately $600 million. David A. Hentschel, 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 "I'm I'm Contraction of I am. Our Living Language Speakers of some scattered varieties of American English sometimes use I'm instead of I've or I have in present perfect constructions, as in very pleased with CanadianOxy's performance for the first quarter of 1996. The results from the North American and Chemical Divisions and our Yemen project demonstrates the quality of these businesses. I look forward to the results from increased activity in each of the business units as the year progresses. A 2-for-1 split of CanadianOxy's common shares was approved by shareholders at the Annual General and Special Meeting held earlier today. The record date for the split will be May 28, 1996, with trading of the subdivided shares commencing two business days in advance of the Record Date. On the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. (AMEX AMEX See: American Stock Exchange ), trading of the subdivided shares will begin one day after the payment date. Also at the meeting, John Feick, formerly president and COO (Cell Of Origin) See mobile positioning. of Novacor Novacor® An implantable left ventricular assist device, which provides self-regulating circulatory support for end-stage heart disease, serving as a mechanical bridge while Pt awaits a heart transplant Chemicals, was elected to the board of directors. Feick brings broad business experience as well as in-depth knowledge of the chemical industry to the board. The board of directors has declared the regular quarterly dividend of $0.15 per common share (pre-split) payable July 1, 1996, to shareholders of record on June 5, 1996. Note: Per-share amounts do not reflect 2-for-1 split. For further information contact: Kevin Finn, Director, Investor and Media Relations; 403/234-1932; 1500, 635-8th Avenue S.W., Calgary, Alberta, Canada T2P T2P Type-Two Phaser (Star Trek) T2P Transition to Production (computer systems development) 3Z1 -0-
FINANCIAL HIGHLIGHTS
(Amounts in millions of Canadian dollars except per-share data)
Three months
1996 1995
--------------------------
Net sales $319 $278
Net income 50 30
Per common share 0.73 0.45
Funds flow from operations 188 150
Per common share 2.77 2.24
Capital and exploration
expenditures 174 63
Net debt 616 762
BUSINESS SEGMENTS INFORMATION (Amounts in millions of Canadian dollars)
Three months
1996 1995
Operating Profit
Oil and Gas
North America
Canada $ 10 $ 7
United States 25 11
Alternate Fuel 8 2
----------------------
43 20
----------------------
International
Republic of Yemen 46 46
North Sea 5 1
Ecuador 2 1
Other (5) (7)
----------------------
48 41
----------------------
Total Oil and Gas 91 61
Chemicals 14 13
----------------------
105 74
Corporate Expenses
and interest (20) (22)
Income taxes (35) (22)
----------------------
Net income $ 50 $ 30
----------------------
AVERAGE COMMODITY PRICES (Amounts in Canadian dollars except WTI)
Three months
1996 1995
-----------------------
Natural Gas (per thousand
cubic feet)
International
North Sea $ 4.24 $ 4.50
North America Canada 1.52 1.16 United States 5.09 2.43 Corporate Average 3.03 2.13 Crude Oil (per barrel) International Republic of Yemen $24.85 $23.15 South America 15.30 14.33 North America Canada 21.10 21.60 United States 26.35 24.31 Corporate Average 24.38 22.78 WTI Average (US dollars) $19.55 $18.36 Synthetic Crude oil (per share) $25.91 $24.32 BUSINESS SEGMENTS INFORMATION (Amounts in million of Canadian dollars)
Three Months
1996 1995
-------------------------
Funds flow from operations
Oil and Gas
North America
Canada $ 23 $ 19
United States 47 26
Alternate Fuels 11 4
------------------------
81 49
------------------------
International
Republic of Yemen 106 104
North Sea 15 17
Ecuador 2 2
Other (1) (2)
------------------------
122 121
------------------------
Total Oil and Gas 203 170
Chemicals 20 17
Corporate Expenses & Interest (17) (20)
Income taxes (18) (17)
------------------------
$188 $150
------------------------
PRODUCTION HIGHLIGHTS
Three Months
1996 1995
------------------------
Natural Gas (million cubic feet per day)
North America
Canada 128.2 130.6
United States 68.0 57.6
International
North Sea 46.7 49.9
------------------------
242.9 238.1
------------------------
Crude Oil, Condensate and
Natural Gas Liquids
(thousands barrels per day)
North America
Canada 11.9 12.0
United States 15.1 11.7
Alternate Fuels 14.4 12.3
International
Republic of Yemen 93.3 85.0
South America 4.1 4.4
North Sea 0.2 0.2
-------------------------
Total 139.0 125.6
-------------------------
CONTACT: Kevin Finn, Director, Investor and Media Relations, 403/234-1932 |
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