-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, G3hzitxN7owpxb4/cjrzgWL+r4XHb/mJ8SROZSBEpTr0KGCO1/ppiV1F6IWhj+0t 9bK1K7sov4bRHVauEEGW3Q== 0000060512-94-000021.txt : 19941111 0000060512-94-000021.hdr.sgml : 19941111 ACCESSION NUMBER: 0000060512-94-000021 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941110 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: LOUISIANA LAND & EXPLORATION CO CENTRAL INDEX KEY: 0000060512 STANDARD INDUSTRIAL CLASSIFICATION: 1311 IRS NUMBER: 720244700 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-00959 FILM NUMBER: 94558812 BUSINESS ADDRESS: STREET 1: 909 POYDRAS ST CITY: NEW ORLEANS STATE: LA ZIP: 70112 BUSINESS PHONE: 5045666500 MAIL ADDRESS: STREET 2: P O BOX 60350 CITY: NEW ORLEANS STATE: LA ZIP: 70160 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q (Mark One) X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended SEPTEMBER 30, 1994 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ............to............ Commission file number 1-959 THE LOUISIANA LAND AND EXPLORATION COMPANY Exact name of registrant as specified in its charter MARYLAND 72-0244700 State or other jurisdiction of I.R.S. Employer incorporation or organization Identification No. 909 POYDRAS STREET, NEW ORLEANS, LA. 70112 Address of principal executive offices Zip Code Registrant's telephone number, including area code 504-566-6500 NO CHANGE Former name, former address and former fiscal year, if changed since last report Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X . No . Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Outstanding at Class October 31, 1994 CAPITAL STOCK, $.15 PAR VALUE 33,374,877 SHARES (Total pages herein - 16) THE LOUISIANA LAND AND EXPLORATION COMPANY INDEX Page Number _________________________________________________________________ PART I. FINANCIAL INFORMATION: Item 1. Financial Statements: (The September 30, 1994 and 1993 consolidated financial statements included in this filing on Form 10-Q have been reviewed by KPMG Peat Marwick, independent auditors, in accordance with established professional standards and procedures for such a review. The report of KPMG Peat Marwick commenting upon their review is included herein.) Consolidated Balance Sheets - September 30, 1994 and December 31, 1993............................. 3 Consolidated Statements of Earnings (loss) - three months and nine months ended September 30, 1994 and 1993...................................... 4 Consolidated Statements of Cash Flows - nine months ended September 30, 1994 and 1993............. 5 Notes to Consolidated Financial Statements........ 6-8 Independent Accountants' Review Report............ 9 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations............................... 10-12 Petroleum Segment Information......................... 13 Operating Data........................................ 14-15 Part II. OTHER INFORMATION: Item 6. Exhibits and Reports on Form 8-K............ 16 Part I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS. THE LOUISIANA LAND AND EXPLORATION COMPANY CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Millions of dollars) September 30, December 31, ASSETS 1994 1993 _____________________________________________________________________________________ CURRENT ASSETS: Cash, including cash equivalents (September 30, 1994-$12.5; December 31, 1993-$15.5) $ 18.9 33.3 Accounts and notes receivable, principally trade 99.0 109.7 Income taxes receivable 4.9 5.2 Inventories 33.6 26.8 Prepaid expenses 6.5 12.7 Deferred income taxes - 2.6 _____________________________________________________________________________________ TOTAL CURRENT ASSETS 162.9 190.3 _____________________________________________________________________________________ Investments in affiliates 23.8 23.5 Property, plant and equipment 2,984.2 2,946.5 Less accumulated depletion, depreciation and amortization (1,430.0) (1,385.5) _____________________________________________________________________________________ NET PROPERTY, PLANT AND EQUIPMENT 1,554.2 1,561.0 _____________________________________________________________________________________ Other assets 30.0 63.9 _____________________________________________________________________________________ $ 1,770.9 1,838.7 _____________________________________________________________________________________ LIABILITIES AND STOCKHOLDERS' EQUITY _____________________________________________________________________________________ CURRENT LIABILITIES: Accounts payable and accrued expenses 153.8 170.9 Income taxes payable 3.1 3.8 _____________________________________________________________________________________ TOTAL CURRENT LIABILITIES 156.9 174.7 _____________________________________________________________________________________ Deferred income taxes 145.4 151.2 Long-term debt 733.5 734.5 Other liabilities 158.9 178.5 _____________________________________________________________________________________ STOCKHOLDERS' EQUITY: Capital stock 5.7 5.7 Additional paid-in capital 83.8 82.9 Retained earnings 655.0 684.4 _____________________________________________________________________________________ 744.5 773.0 Loans to ESOP (6.0) (8.8) Cost of capital stock in treasury (162.3) (164.4) _____________________________________________________________________________________ TOTAL STOCKHOLDERS' EQUITY 576.2 599.8 _____________________________________________________________________________________ $ 1,770.9 1,838.7 _____________________________________________________________________________________ See accompanying notes to consolidated financial statements.
THE LOUISIANA LAND AND EXPLORATION COMPANY CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (UNAUDITED) (Millions, except per share data)
Three months ended Nine months ended September 30, September 30, 1994 1993 1994 1993 _____________________________________________________________________________________ REVENUES: Oil and gas $105.1 86.6 313.8 258.9 Refined products 92.3 101.4 270.6 302.1 Gain on sale of oil and gas properties .2 - 6.8 - Other .3 5.5 4.1 14.1 _____________________________________________________________________________________ 197.9 193.5 595.3 575.1 _____________________________________________________________________________________ COSTS AND EXPENSES: Lease operating and facility expenses 28.6 26.3 86.3 76.7 Refinery cost of sales and operating expenses 93.9 101.6 268.3 300.1 Dry holes and exploratory charges 25.6 13.1 51.6 34.5 Depletion, depreciation and amortization 44.9 28.2 137.5 81.0 Taxes, other than on earnings 6.1 6.3 18.9 19.0 General, administrative and other expenses 10.7 10.6 31.5 31.2 Interest and debt expenses 6.7 4.8 18.7 15.0 Reversal of litigation accrual - - (10.0) - _____________________________________________________________________________________ 216.5 190.9 602.8 557.5 _____________________________________________________________________________________ Earnings (loss) before income taxes (18.6) 2.6 (7.5) 17.6 Income tax expense (benefit) (7.3) 4.4 (3.0) 11.1 _____________________________________________________________________________________ Earnings (loss) before cumulative effect of changes in accounting principles (11.3) (1.8) (4.5) 6.5 Cumulative effect on years prior to 1993 of changes in accounting principles - - - .2 _____________________________________________________________________________________ NET EARNINGS (LOSS) $(11.3) (1.8) (4.5) 6.7 _____________________________________________________________________________________ Earnings (loss) per share before cumulative effect of changes in accounting principles (0.34) (0.06) (0.14) 0.22 Cumulative effect on years prior to 1993 of changes in accounting principles - - - 0.01 _____________________________________________________________________________________ EARNINGS (LOSS) PER SHARE $(0.34) (0.06) (0.14) 0.23 _____________________________________________________________________________________ AVERAGE SHARES 33.4 28.9 33.4 28.7 _____________________________________________________________________________________ CASH DIVIDENDS PER SHARE $ 0.25 0.25 0.75 0.75 _____________________________________________________________________________________ See accompanying notes to consolidated financial statements.
THE LOUISIANA LAND AND EXPLORATION COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Millions of dollars)
Nine months ended September 30, 1994 1993 _____________________________________________________________________________________ CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings (loss) $ (4.5) 6.7 Adjustments to reconcile to cash flows from operations: Gain on sale of oil and gas properties (6.8) - Changes in accounting principles - (.2) Depletion, depreciation and amortization 137.5 81.0 Deferred income taxes (3.3) (10.7) Dry holes and impairment charges 29.1 15.5 Other 2.0 10.0 _____________________________________________________________________________________ 154.0 102.3 Changes in operating assets and liabilities: Net (increase) decrease in receivables 20.7 (17.0) Net (increase) decrease in inventories (8.5) 1.6 Net (increase) decrease in prepaid items 6.8 (2.1) Net increase (decrease) in payables (24.0) 15.0 Other 1.6 10.1 _____________________________________________________________________________________ NET CASH FLOWS FROM OPERATING ACTIVITIES 150.6 109.9 _____________________________________________________________________________________ CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of NERCO - (359.1) Capital expenditures (166.1) (128.1) Proceeds from asset sales 14.9 1.6 Other (19.9) (33.9) _____________________________________________________________________________________ NET CASH FLOWS FROM INVESTING ACTIVITIES (171.1) (519.5) _____________________________________________________________________________________ CASH FLOWS FROM FINANCING ACTIVITIES: Additions to long-term debt 152.0 471.0 Repayments of long-term debt (153.0) (68.6) Advances against cash surrender value 34.4 - Dividends (24.9) (21.5) Repayment of loans to ESOP 2.8 2.2 Purchase of treasury stock - (1.5) Other (5.2) (3.1) _____________________________________________________________________________________ NET CASH FLOWS FROM FINANCING ACTIVITIES 6.1 378.5 _____________________________________________________________________________________ DECREASE IN CASH AND CASH EQUIVALENTS $ (14.4) (31.1) _____________________________________________________________________________________ See accompanying notes to consolidated financial statements.
THE LOUISIANA LAND AND EXPLORATION COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the financial position as of September 30, 1994, and the results of operations and cash flows for the three-month and nine-month periods ended September 30, 1994 and 1993. Certain amounts have been reclassified to conform with the current period's presentation. 2. On September 28, 1993, the Company completed the acquisition of all of the issued and outstanding common stock of NERCO Oil & Gas, Inc. ("NERCO") for a cash purchase price of approximately $354 million. The cost of the acquisition was allocated under the purchase method of accounting based on the fair value of the assets acquired and liabilities assumed. The results of NERCO's operations were consolidated with the Company's effective October 1, 1993. Pro forma combined results of operations of the Company and NERCO, including appropriate purchase accounting adjustments for the three-month and nine-month periods ending September 30, 1993 as though the acquisition had taken place on January 1, 1993, follows:
(Millions, except per share data) Three months Nine months ended ended September 30, September 30, 1993 1993 _________________________________________________________________________________ Revenues $217.1 666.8 _________________________________________________________________________________ Earnings (loss) before cumulative effect of changes in accounting principle (13.4) (6.5) Cumulative effect on years prior to 1993 of changes in accounting principles - .2 _________________________________________________________________________________ Net earnings (loss) $(13.4) (6.3) _________________________________________________________________________________ Earnings (loss) per share $(0.40) (0.19) _________________________________________________________________________________
3. The Company adopted SFAS No. 106 - "Employers' Accounting for Postretirement Benefits Other Than Pensions", effective January 1, 1993. Upon adoption, the Company recorded a transition liability of $20.5 million as a one-time non-cash charge against earnings ($13.5 million after income taxes; $0.47 per share) in the first quarter of 1993. 4. The Company adopted SFAS No. 109 - "Accounting for Income Taxes", effective January 1, 1993. Upon adoption, the Company recorded a non- cash credit to earnings of $13.7 million ($0.48 per share) in the first quarter of 1993, which represented the recognition of deferred tax assets existing at December 31, 1992. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 5. With the enactment of the Budget Reconciliation Act of 1993, the federal statutory corporate income tax rate was increased from 34% to 35% retroactive to January 1, 1993. As a result, the Company increased its deferred income tax liabilities as of January 1, 1993 with a charge to income tax expense of $3 million ($0.10 per share) during the quarter ended September 30, 1993. The rate increase had an immaterial effect on income tax expense for the nine months ended September 30, 1993. 6. For the three months ended September 30, 1994 and 1993, interest costs incurred were $11.8 million and $9.3 million, respectively, of which $5.1 million and $4.5 million, respectively, were capitalized as part of the cost of property, plant and equipment. For the nine months ended September 30, 1994 and 1993, interest costs incurred were $35.3 million and $27.9 million, respectively, of which $16.6 million and $12.9 million, respectively, were capitalized as part of the cost of property, plant and equipment. 7. Earnings per share are calculated on the weighted average number of shares outstanding during each period for capital stock and, when dilutive, capital stock equivalents, which assumes exercise of stock options. 8. In accordance with Regulation S-X, Rule 3-09, the audited consolidated financial statements of the Company's 50%-owned affiliate, MaraLou Netherlands Partnership (MaraLou) and its wholly-owned consolidated subsidiary, CLAM Petroleum Company (CLAM), were filed with the Company's Annual Report on Form 10-K for the year ended December 31, 1993. Accordingly, the following unaudited summarized consolidated income statement information for MaraLou and its consolidated subsidiary, CLAM, for the three-month and nine-month periods ended September 30, 1994 and 1993 are presented in accordance with Regulation S-X, Rule 10-01(b).
(Unaudited) Three months ended Nine months ended September 30, September 30, 1994 1993 1994 1993 ________________________________________________________________________________ Gross revenues $12.9 5.1 44.1 43.5 ________________________________________________________________________________ Operating profit 2.5 .9 22.2 22.6 ________________________________________________________________________________ Earnings (loss) before cumulative effect of change in accounting principle (4.8) (1.2) 2.9 7.5 Cumulative effect on years prior to 1993 of change in accounting principle for income taxes - - - (6.0) ________________________________________________________________________________ Net earnings (loss) $(4.8) (1.2) 2.9 1.5 ________________________________________________________________________________
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 9. As explained in Note 15 of "Notes to Consolidated Financial Statements" in the Company's 1993 Annual Report to Shareholders, the State of Louisiana had asserted claims against the Company in its capacity as sublessor to Texaco of certain State leases, based upon Texaco's alleged royalty miscalculations. In February 1994, a settlement was agreed to by all parties under which the Company made a $5 million cash payment and agreed to a reduction of an immaterial amount of future payments to the Company by Texaco related to the Company's 8-1/3% net profits interest (for which the Company has no cost basis) on a limited number of the Company's Louisiana properties. The amounts previously provided in the financial statements for this litigation exceeded the cash payment required by $10 million, which was reversed during the first quarter of 1994. As also explained in Note 15, the Company has been notified by the U.S. Environmental Protection Agency that it is one of many Potentially Responsible Parties at three National Priorities List sites. Based on its evaluation of the potential total cleanup costs, its estimate of its potential exposure, and the viability of the other PRP's, the Company believes that any costs ultimately required to be borne by it at these sites will not have a material adverse effect on its results of operations, cash flow or financial position. The Company is subject to other legal proceedings, claims and liabilities which arise in the ordinary course of its business. In the opinion of Management, the amount of ultimate liability with respect to these actions will not have a material adverse effect on results of operations, cash flow or financial position of the Company. INDEPENDENT ACCOUNTANTS' REVIEW REPORT The Board of Directors The Louisiana Land and Exploration Company: We have reviewed the consolidated balance sheet of The Louisiana Land and Exploration Company and subsidiaries as of September 30, 1994, and the related consolidated statements of earnings and cash flows for the three- month and nine-month periods ended September 30, 1994 and 1993. These financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated balance sheet of The Louisiana Land and Exploration Company and subsidiaries as of December 31, 1993, and the related consolidated statements of earnings (loss), stockholders' equity, and cash flows for the year then ended (not presented herein); and in our report dated February 9, 1994, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 1993, is fairly presented, in all material respects, in relation to the consolidated balance sheet from which it has been derived. /KPMG PEAT MARWICK LLP KPMG PEAT MARWICK LLP New Orleans, Louisiana November 7, 1994 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. REVIEW OF OPERATIONS Third quarter operations resulted in a pretax loss of $18.7 million in 1994, down from the $2.6 million pretax earnings reported in the comparable 1993 quarter. As a result, a $7.5 million pretax loss was incurred during the first nine months of 1994, compared to the $17.6 pretax earnings reported in the 1993 period. Even though oil and gas revenues were up significantly in both 1994 periods, the higher revenues were not enough to offset the increased dry hole and exploratory charges, higher depletion, depreciation and amortization (DD&A) charges and operating losses from refining operations. The 1994 loss also included the Company's equity in the third quarter loss of its 50% owned affiliate, CLAM Petroleum Company, which resulted from increases in exploration charges and in CLAM's foreign income tax provision to adjust for exchange rate fluctuations. This adjustment reduced the Company's equity in CLAM's net earnings by $2 million. Partially offsetting the year-to-date loss were nonrecurring items relating to a $10 million pretax gain on the reversal of a previously established provision for the settlement of the Texaco litigation and a $6.8 million pretax gain on the sale of oil and gas properties. The Company's effective income tax rate exceeds the Federal statutory rate of 35% primarily as a result of higher tax rates in foreign jurisdictions. OIL AND GAS OPERATIONS Revenues from the Company's oil and gas operations were up over $18 million from the third quarter of 1993. Liquids revenues were up almost $16 million due to increased crude oil volumes ($11 million) and higher worldwide crude oil prices ($5 million). Natural gas revenues were up almost $3 million as a result of higher domestic deliveries ($10 million), which were partially offset by lower prices ($7 million). In the first nine months of 1994, revenues from the Company's oil and gas operations were up $55 million from the comparable 1993 period. Natural gas revenues were up almost $43 million as a result of higher domestic deliveries ($48 million), which were partially offset by lower prices ($5 million). Liquids revenues were up approximately $11 million due to increased crude oil volumes ($30 million). The higher crude oil volumes more than offset the effect of lower worldwide crude oil prices ($18 million). Crude oil volumes in the third quarter and first nine months of 1994 increased 6,700 and 6,000 barrels per day, respectively, from the 1993 periods due to higher domestic and North Sea volumes. The increase in domestic volumes was primarily due to the late-1993 acquisition of NERCO, new wells coming onstream and increased production from domestic wells that were shut-in for repairs and maintenance during the prior year periods. North Sea volumes were up due to the late-1993 T-Block acquisition and new wells onstream at Brae Field. These production increases at domestic and North Sea properties were partially offset by natural declines at mature producing properties. Volumes from other foreign operations were down primarily due to the sale of certain Canadian properties in late 1993. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (CONTINUED) The improvement in domestic natural gas deliveries, up approximately 50 million and 83 million cubic feet per day in the third quarter and first nine months of 1994, respectively, was primarily due to the acquisition of NERCO and new domestic wells coming onstream. These increases were partially offset by the effects of natural declines at mature producing properties, and the sale of a limited number of domestic properties and certain Canadian properties since the 1993 periods. In addition, domestic gas sales volumes began being voluntarily curtailed late in the third quarter in response to low prices, the duration and impact of which is not known at this time. Costs and expenses increased during the third quarter and first nine months of 1994. Lease operating and facility expenses were higher in both periods primarily due to additional operating costs for properties acquired since the comparable 1993 periods. DD&A was up 59% and 70%, respectively, from the comparable 1993 periods due primarily to DD&A on properties and working interests acquired in late 1993. These increases were reduced somewhat by the lower DD&A resulting from the sale of certain Canadian properties in late 1993. Dry hole and exploratory charges were up in 1994 due to the write-off of unsuccessful wells and higher domestic seismic costs incurred. General, administrative and other expenses remained essentially unchanged from the 1993 periods. Interest and debt expenses increased due to the higher debt level incurred primarily in late 1993. An increase of investments in qualifying projects resulted in greater capitalized interest which partially offset the higher interest expense. REFINING OPERATIONS Refining operations in the 1994 third quarter resulted in a $3 million pretax operating loss. A $1.9 million operating loss was reported in the comparable 1993 quarter. The revenue declines caused by lower sales volumes ($13 million) along with higher operating costs more than offset the favorable impact of lower crude oil feedstock costs ($10 million) and higher product prices ($2 million). Due to the third-quarter loss, refining operations for the first nine months of 1994 resulted in a pretax operating loss of $0.9 million. A $2.9 million operating loss was reported in the comparable 1993 period. Lower revenues, due to declining product prices ($28 million) and lower sales volumes ($2 million), along with higher operating costs more than offset the favorable impact of lower crude oil feedstock costs ($33 million). LIQUIDITY AND CAPITAL RESOURCES In the nine months of 1994, the Company generated approximately $150 million in cash from operations. However, cash and equivalents were reduced $14 million primarily as the result of expenditures for capital projects ($166 million), expenditures associated with asset acquisitions and dispositions ($10 million) and dividends paid ($25 million). The Company's cash position was supplemented with advances against cash surrender values of life insurance policies ($34 million) and the proceeds from assets sales ($15 million). The Company expects to fund fourth quarter expenditures, including capital expenditures of approximately $70 million, primarily from operating cash flows. However, the Company expects to supplement its working capital, from time-to-time, through its commercial paper program and its existing revolving credit facility. As explained in Note 8 of "Notes to Consolidated Financial Statements" in the Company's 1993 Annual Report to Shareholders, the Company completed the early retirement of the $133.5 million, 8.92% Term Loan (discounted to yield 10.7%) due July 1994 utilizing the Revolving Credit Facility in January 1994. NOTE: The accompanying consolidated financial statements and notes thereto included in Item 1. of this Form 10-Q and the petroleum segment information and operating data following this Item 2. are an integral part of this discussion and analysis and should be read in conjunction herewith. THE LOUISIANA LAND AND EXPLORATION COMPANY PETROLEUM SEGMENT INFORMATION (Millions of dollars)
Three months ended Nine months ended September 30, September 30, 1994 1993 1994 1993 _____________________________________________________________________________________ Sales to unaffiliated customers: Domestic $ 166.0 169.7 517.0 500.7 North Sea 26.4 9.5 60.4 30.1 Other foreign 5.2 8.8 13.8 30.2 _____________________________________________________________________________________ 197.6 188.0 591.2 561.0 Interest and other income .3 5.5 4.1 14.1 _____________________________________________________________________________________ Total revenues $ 197.9 193.5 595.3 575.1 _____________________________________________________________________________________ Earnings (loss) before income taxes: Operating profit (loss): Domestic 6.3 19.1 46.7 65.0 North Sea 4.3 (1.8) 4.0 (4.2) Other foreign (10.4) (2.7) (16.8) (5.1) _____________________________________________________________________________________ .2 14.6 33.9 55.7 Other income (expense), net (18.8) (12.0) (41.4) (38.1) _____________________________________________________________________________________ Earnings (loss) before income taxes $ (18.6) 2.6 (7.5) 17.6 _____________________________________________________________________________________ Capital expenditures: Exploration: Domestic 12.2 10.1 35.6 21.1 North Sea .8 .7 1.6 1.6 Other foreign 5.0 2.3 12.7 7.4 _____________________________________________________________________________________ 18.0 13.1 49.9 30.1 _____________________________________________________________________________________ Development: Domestic 25.6 18.4 62.3 39.7 North Sea 4.3 4.7 13.8 28.3 Other foreign 4.1 .4 9.4 .8 _____________________________________________________________________________________ 34.0 23.5 85.5 68.8 _____________________________________________________________________________________ 52.0 36.6 135.4 98.9 Refining and marketing 2.8 4.1 9.6 14.0 _____________________________________________________________________________________ 54.8 40.7 145.0 112.9 Capitalized interest 5.1 4.4 16.6 12.8 Other 1.2 1.0 2.5 2.4 _____________________________________________________________________________________ $ 61.1 46.1 164.1 128.1 _____________________________________________________________________________________
THE LOUISIANA LAND AND EXPLORATION COMPANY OPERATING DATA
Three months ended Nine months ended September 30, September 30, 1994 1993 1994 1993 _____________________________________________________________________________________ OIL AND GAS OPERATIONS1 CRUDE AND CONDENSATE2 Production (thousands of barrels per day): Domestic 21.9 21.4 22.8 20.8 North Sea 16.1 6.2 13.6 6.3 Other foreign 2.9 6.6 3.5 6.8 _____________________________________________________________________________________ 40.9 34.2 39.9 33.9 _____________________________________________________________________________________ Average price received (per barrel): Domestic $17.66 16.53 16.15 17.95 North Sea 17.17 15.79 15.73 16.87 Other foreign 15.94 13.84 12.42 15.07 Consolidated 17.35 15.88 15.68 17.17 _____________________________________________________________________________________ PLANT PRODUCTS Production (thousands of barrels per day): Domestic 2.6 2.3 2.4 2.4 North Sea .7 .5 .5 .4 _____________________________________________________________________________________ 3.3 2.8 2.9 2.8 _____________________________________________________________________________________ Average price received (per barrel): Domestic $10.16 10.75 9.70 11.55 North Sea 11.07 12.53 11.51 12.92 Consolidated 10.35 11.05 10.00 11.74 _____________________________________________________________________________________ NATURAL GAS Production (millions of cubic feet per day): Domestic 215.7 165.5 232.8 150.2 North Sea 1.1 .2 .6 .2 Other foreign 2.4 3.6 3.0 5.1 CLAM Petroleum Company 29.9 10.8 35.9 31.6 _____________________________________________________________________________________ 249.1 180.1 272.3 187.1 _____________________________________________________________________________________ Average price received (per MCF): Domestic $ 1.78 2.15 2.05 2.14 North Sea 2.62 1.36 2.34 1.51 Other foreign 1.87 1.24 1.79 1.28 CLAM Petroleum Company 2.25 2.93 2.19 2.51 Consolidated 1.84 2.18 2.07 2.18 _____________________________________________________________________________________ 1 Includes the Company's 50% equity interest in its unconsolidated affiliate, CLAM Petroleum Company. 2 Before the elimination of intercompany transfers.
THE LOUISIANA LAND AND EXPLORATION COMPANY OPERATING DATA (CONTINUED)
Three months ended Nine months ended September 30, September 30, 1994 1993 1994 1993 _____________________________________________________________________________________ REFINING OPERATIONS Refining Operating Profit (Loss): Revenues: Refined products* $ 97.2 108.1 288.2 318.1 Other .5 .3 1.7 1.6 _____________________________________________________________________________________ 97.7 108.4 289.9 319.7 _____________________________________________________________________________________ Cost and expenses: Cost of sales* 88.6 99.1 256.4 289.8 Operating expenses 10.2 9.2 29.5 26.3 Depreciation .9 1.3 2.4 3.8 Taxes, other than income .9 .7 2.5 2.7 _____________________________________________________________________________________ 100.6 110.3 290.8 322.6 _____________________________________________________________________________________ $ (2.9) (1.9) (.9) (2.9) _____________________________________________________________________________________ *Before the elimination of intercompany transfers to the Company's refinery $ 4.9 6.7 17.6 16.0 _____________________________________________________________________________________ Sales (thousands of barrels per day) 50.3 57.1 53.3 53.6 _____________________________________________________________________________________ Average price received (per barrel) $21.04 20.57 19.82 21.75 _____________________________________________________________________________________ _____________________________________________________________________________________ GROSS WELLS DRILLED Working Interest Exploratory: Oil - 8 3 21 Gas 5 3 10 6 Dry 6 5 10 16 _____________________________________________________________________________________ 11 16 23 43 _____________________________________________________________________________________ Development: Oil 3 4 5 7 Gas 7 2 10 6 Dry - 1 - 1 _____________________________________________________________________________________ 10 7 15 14 _____________________________________________________________________________________ Total working interest 21 23 38 57 Royalty Interest 4 4 18 23 _____________________________________________________________________________________ Total wells 25 27 56 80 _____________________________________________________________________________________ NET WELLS DRILLED Exploratory: Oil - 5.0 .9 10.7 Gas 1.9 1.2 4.9 2.6 Dry 4.3 2.7 6.4 7.8 _____________________________________________________________________________________ 6.2 8.9 12.2 21.1 _____________________________________________________________________________________ Development: Oil .2 1.0 .7 1.8 Gas 2.0 .3 2.6 1.0 Dry - .3 - .3 _____________________________________________________________________________________ 2.2 1.6 3.3 3.1 _____________________________________________________________________________________ Total net wells 8.4 10.5 15.5 24.2 _____________________________________________________________________________________
PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Exhibits: Exhibit 27 - Financial Data Schedule (b) Reports on Form 8-K: NONE SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THE LOUISIANA LAND AND EXPLORATION COMPANY (REGISTRANT) By: /s/ Jerry D. Carlisle ___________________________________________ JERRY D. CARLISLE VICE PRESIDENT AND CONTROLLER (PRINCIPAL ACCOUNTING OFFICER) Dated: November 9, 1994 EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AND CONSOLIDATED STATEMENT OF EARNINGS (LOSS) OF THE LOUISIANA LAND AND EXPLORATION COMPANY AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1994 SEP-30-1994 18,900 0 103,900 0 33,600 162,900 2,984,200 1,430,000 1,770,900 156,900 733,500 5,700 0 0 570,500 1,770,900 591,200 595,300 0 562,600 21,500 0 18,700 (7,500) (3,000) (4,500) 0 0 0 (4,500) (.14) (.14)
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