Union Pacific Resources' $93 Million First Quarter Income Up Almost 120 Percent; Cash Flow, Revenues Substantially Higher.Business Editors FORT WORTH, Texas--(BUSINESS WIRE)--April 26, 2000 Union Pacific Resources Group Inc. (NYSE NYSE See: New York Stock Exchange :UPR UPR Upper UPR University of Puerto Rico UPR Universal Periodic Review (UN Human Rights Council) UPR Unia Polityki Realnej (Polish political party) UPR unfolded protein response ) today announced first quarter income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $92.7 million, or $0.37 per share, more than double last year's first quarter income of $42.3 million, or $0.17 per share. 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. increased by nearly 20 percent, to $304.6 million from last year's first quarter $255.8 million, and higher prices for oil and gas pushed operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. up more than 25 percent, to $522.3 million, from $415.1 million for the same period last year. The price rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective from 1999 also led to an increase of more than 200 percent in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , to $188.5 million, compared to last year's first quarter total of $59.3 million. The Company reported first quarter capital expenditures of $155 million, compared to capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. of $111 million in the first three months of 1999, an increase of 40 percent. The increased spending pushed the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. rig count to an average of 33, versus last year's average of 15 for the same time period. First quarter volumes came in, as expected, at an average of just over 2 billion cubic feet equivalent per day, about one and one-half percent lower than the average for the fourth quarter of 1999. The Company expects second quarter production volumes to continue at essentially the same rates. Higher first quarter capital spending did not slow the Company's aggressive debt reduction program. Total debt at the end of the first quarter totaled $2.6 billion after the application of about $200 million from cash flow to year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1999 total debt of $2.8 billion. In anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of the merger of UPR and Anadarko Petroleum Corporation Anadarko Petroleum Corporation (NYSE: APC) is one of the world’s largest independent oil and gas exploration and production companies, with 2.37 billion barrels of oil equivalent (BOE) of proved reserves and a production of 190 million BOE in 2004. Ranked No. , the Company plans to accumulate Accumulate Broker/analyst recommendation that could mean slightly different things depending on the broker/analyst. In general, it means to increase the number of shares of a particular security over the near term, but not to liquidate other parts of the portfolio to buy a security excess cash flow in cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. or temporary investments in the second quarter. "We had an excellent first quarter," said UPR Chairman, President and Chief Executive Officer George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). Lindahl Lindahl is a Swedish or Norwegian surname, and may refer to
This page or section lists people with the surname Lindahl. III. "It demonstrates the value that we bring to the merger of UPR and Anadarko announced earlier this month. When the merger is complete, the combination of our complementary strengths -- Anadarko's in exploration and ours in exploitation Exploitation See also Opportunism. Barnum, P. T. (1810–1891) circus impressario famous for his saying, “Never give a sucker an even break.” [Am. Hist. through drilling and completion technology -- should bring us increased opportunities for growth and increased value for our shareholders." The shareholders of UPR and Anadarko, and government regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. bodies, must approve the merger. The new company, which will be based in Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , will be called Anadarko Petroleum Corporation. This press release, other than historical financial information, contains 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. that are based on assumptions and estimates we believe reasonable but that are subject to a wide range of risks and uncertainties. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including possible transactions, changes in oil and gas prices, the timing and results of oil and gas drilling and acquisition programs, the success of management's cost-reduction and implementation activities, expected production efforts and volumes, budgeted capital expenditures and other risks and uncertainties detailed in the Company's Securities and Exchange Commission reports, including the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 1999. The proposed merger transaction involving UPR and Anadarko Petroleum Corporation will be submitted to each company's shareholders. All shareholders should read the joint proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. statement/prospectus concerning the merger that will be filed with the SEC and mailed to shareholders. The joint proxy statement/prospectus will contain important information that shareholders should consider before making any decision regarding the merger. Shareholders will be able to obtain the joint proxy statement/prospectus as well as other filings containing information about UPR and Anadarko, without charge, at the SEC's Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the site (http://www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. ). Copies of the joint proxy statement/prospectus and the SEC filings that will be incorporated by reference in the joint proxy statement/prospectus can also be obtained, without charge, from the Corporate Secretary of the appropriate company. Information regarding the participants in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual , and a description of their direct and indirect interests, by security holdings or otherwise, are contained in UPR's filing with the SEC on Schedule 14A under Rule 14a-12 on April 7, 2000 and in Anadarko's filing of its press release with the SEC under Rule 425 on April 3, 2000.
UNION PACIFIC RESOURCES GROUP INC.
STATEMENTS OF INCOME
For the Period Ended March 31
(Dollars in Millions, except where noted)
First Quarter
---------------
2000 1999
------- -------
Operating revenues:
Producing properties $ 479.8 $319.0
Other oil and gas revenues 5.0 63.9
Minerals 37.5 32.2
------- -------
Total operating revenues 522.3 415.1
------- -------
Operating expenses:
Production 107.9 90.5
Exploration 30.3 51.6
Minerals 0.6 0.4
Depreciation, depletion and amortization 176.2 183.2
General and administrative 18.8 15.6
Restructuring charge -- 14.5
------- -------
Total operating expenses 333.8 355.8
Operating income 188.5 59.3
Other income (loss) - net (14.8) 11.4
Interest expense (48.9) (64.3)
------- -------
Income before income taxes 124.8 6.4
Income tax (expense) benefit (32.1) 35.9
------- -------
Income from continuing operations 92.7 42.3
(Loss) from discontinued operations - net
of tax -- (23.8)
Gain on sale of discontinued operations -
net of tax -- 157.0
Extraordinary gain from extinguishment of
debt - net of tax 2.9 --
------- -------
Net income $ 95.6 $ 175.5
------- -------
------- -------
Per share:
Income from continuing operations-basic and
diluted $ 0.37 $ 0.17
Net income - basic and diluted $ 0.38 $ 0.71
Average shares outstanding (millions) basic 249.3 248.6
Average shares outstanding (millions)
diluted 249.4 248.7
UNION PACIFIC RESOURCES GROUP INC.
STATEMENTS OF FINANCIAL POSITION
(Dollars in Millions)
ASSETS
As of As of
March 31, December 31,
2000 1999
---------- ------------
Current assets:
Cash and temporary investments $ 65.6 $ 123.7
Accounts receivable 326.7 304.4
Inventories 53.3 54.7
Other current assets 24.5 13.1
--------- ----------
Total current assets 470.1 495.9
--------- ----------
Properties - net 5,413.5 5,471.0
Intangible and other assets 175.9 180.0
--------- ----------
Total assets $ 6,059.5 $ 6,146.9
--------- ----------
--------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 279.7 $ 285.0
Accrued taxes payable 96.2 68.6
Other current liabilities 171.4 185.8
Short-term debt 2.3 2.3
--------- ----------
Total current liabilities 549.6 541.7
--------- ----------
Long-term debt 2,606.1 2,797.3
Deferred income taxes 1,334.8 1,326.8
Other long-term liabilities 548.5 543.6
Shareholders' equity 1,020.5 937.5
--------- ----------
Total liabilities and
shareholders' equity $ 6,059.5 $ 6,146.9
--------- ----------
--------- ----------
UNION PACIFIC RESOURCES GROUP INC.
STATEMENTS OF CASH FLOWS
For the Period Ended March 31
(Dollars in Millions)
First Quarter
---------------
2000 1999
---- ----
Cash provided by operations:
Net income $ 95.6 $ 175.5
Loss from discontinued operations -- 23.8
Gain on sale of discontinued business -
net -- (157.0)
Gain on extinguishment of debt - net of
tax (2.9) --
------- -------
Net income from continuing operations 92.7 42.3
Depreciation, depletion and amortization 176.2 183.2
Exploration expenses 30.3 51.6
Deferred taxes 5.4 (21.3)
------- -------
Discretionary cash flow 304.6 255.8
Working capital and other changes 9.9 (34.1)
------- -------
Cash provided by operations 314.5 221.7
------- -------
Cash provided (used) by investing activities:
Capital and exploratory expenditures (155.2) (110.8)
Proceeds from sales of assets 5.3 200.2
Proceeds from sales of discontinued
operations -- 1,359.1
Cash provided (used) by discontinued
operations (2.6) (169.5)
------- -------
Cash provided (used) by investing activities (152.5) 1,279.0
------- -------
Cash provided (used) by financing activities:
Dividends paid (12.4) (12.4)
Repayment of long-term debt (190.2) (1,472.9)
Other financings-- net (17.5) 147.1
------- -------
Cash provided (used) by financing activities (220.1) (1,338.2)
------- -------
Net change in cash and temporary investments $(58.1) $ 162.5
------- -------
UNION PACIFIC RESOURCES GROUP INC.
VOLUME AND PRICE STATISTICS
For the Period Ended March 31
First Quarter
---------------
2000 1999
----- ------
Average daily production:
Natural gas: (MMcfd)
United States 889.9 1,042.7
Canada 270.3 276.3
Other International 7.2 8.1
------- -------
Total 1,167.4 1,327.1
Natural gas liquids: (MBbld)
United States 27.5 22.1
Canada 1.9 2.4
------- -------
Total 29.4 24.5
Crude oil: (MBbld)
United States 40.1 48.1
Canada 29.3 31.3
Heavy oil 14.6 12.8
Light oil 14.7 18.5
Guatemala 18.7 21.8
Venezuela 18.7 20.4
Other International 3.9 4.7
------- -------
Total 110.7 126.3
Total production (MMcfed) 2,008.5 2,231.7
Average sales prices:
Natural gas: (per Mcf)
United States $ 2.35 $ 1.67
Canada 2.16 1.47
Other International 1.01 1.10
Total 2.29 1.63
Natural gas liquids: (per Bbl)
United States 17.86 7.62
Canada 17.99 6.11
Total 17.86 7.47
Crude oil: (per Bbl)
United States 21.16 11.37
Canada 19.30 7.19
Heavy oil 14.22 6.24
Light oil 24.33 7.86
Guatemala 17.44 8.93
Venezuela 12.77 9.34
Other International 22.85 10.15
Total 18.69 9.54
Total sales price per Mcfe $ 2.63 $1.59
UNION PACIFIC RESOURCES GROUP INC.
OTHER INFORMATION
As of March 31
(Dollars in Millions, except where noted)
First Quarter
-------------
2000 1999
------ ------
Production expenses:
Lease operating expense and other $ 73.7 $ 73.5
Severance and property taxes 34.2 17.0
------- -------
Total production expenses $ 107.9 $ 90.5
Exploration expenses
Dry hole $ 3.2 $ 5.4
Seismic 6.5 4.6
Undeveloped leasehold 13.5 34.3
Overhead and other 7.1 7.3
------- -------
Total exploration expenses $ 30.3 $ 51.6
------- -------
------- -------
Unit costs: (per Mcfe)
Production costs (including lease
operating expense) $ 0.59 $ 0.45
Lease operating expense and other 0.40 0.36
DD&A - exploration & production 0.96 0.90
General and administrative
(excluding restructuring charge) 0.10 0.08
2000 2000 Discretionary
Pre Tax After Tax Cash Flow
------- --------- ------------
Other continuing operations items
for the first quarter:
Foreign currency loss $ (5.7) $ (5.7) $ --
Foreign currency gain tax
adjustment -- 4.0 4.0
Hedging Activity (as of 04/24/2000)
Fixed Collars
---------------- -----------------------
Nymex Nymex
Natural Gas (MMcfd) Volume Price Volume Price
------ ----- ------ -----
2Q 2000 388 $2.43 385 $2.38 - 2.84
3Q 2000 323 2.41 461 2.33 - 2.74
4Q 2000 187 2.46 322 2.42 - 2.90
TY 2001 8 2.40 133 2.63 - 3.30
Crude Oil (MBbld)
2Q 2000 35 20.37 35 17.29 - 21.77
3Q 2000 33 20.34 35 17.29 - 21.77
4Q 2000 30 20.41 35 17.29 - 21.77
TY 2001 -- -- 35 20.43 - 25.24
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