-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, U1Wnf2jR/DisEpzu0Ldg0InAXp7yfAlQqYK+fyeF3xpkOQiKH98L8TjTfUeqQfbt MNFMFSvp1fCbIMnp5tUoBw== 0000060512-96-000011.txt : 19961113 0000060512-96-000011.hdr.sgml : 19961113 ACCESSION NUMBER: 0000060512-96-000011 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961112 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: LOUISIANA LAND & EXPLORATION CO CENTRAL INDEX KEY: 0000060512 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [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: 96659040 BUSINESS ADDRESS: STREET 1: 909 POYDRAS ST CITY: NEW ORLEANS STATE: LA ZIP: 70112 BUSINESS PHONE: 5045666500 MAIL ADDRESS: STREET 1: 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, 1996 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, 1996 CAPITAL STOCK, $.15 PAR VALUE 34,175,029 SHARES THE LOUISIANA LAND AND EXPLORATION COMPANY INDEX Page Number _________________________________________________________________ PART I. FINANCIAL INFORMATION: Item 1. Financial Statements: (The September 30, 1996 and 1995 consolidated financial statements included in this filing on Form 10-Q have been reviewed by KPMG Peat Marwick LLP, independent auditors, in accordance with established professional standards and procedures for such a review. The report of KPMG Peat Marwick LLP commenting upon their review is included herein.) Consolidated Balance Sheets - September 30, 1996 and December 31, 1995............................. 3 Consolidated Statements of Earnings - three months and nine months ended September 30, 1996 and 1995...................................... 4 Consolidated Statements of Cash Flows - nine months ended September 30, 1996 and 1995............. 5 Notes to Consolidated Financial Statements........ 6-7 Independent Auditors' Review Report............... 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations............................... 9-11 Petroleum Segment Information......................... 12 Operating Data........................................ 13-14 Part II. OTHER INFORMATION: Item 6. Exhibits and Reports on Form 8-K............ 15 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 1996 1995 _____________________________________________________________________________________ CURRENT ASSETS: Cash, including cash equivalents (September 30, 1996-$5.2; December 31, 1995-$1.0) $ 12.3 10.3 Accounts and notes receivable, principally trade 85.6 143.6 Income taxes receivable .6 .2 Inventories .4 38.7 Prepaid expenses 7.1 12.9 Deferred income taxes .9 .9 _____________________________________________________________________________________ TOTAL CURRENT ASSETS 106.9 206.6 _____________________________________________________________________________________ Investments in affiliates 8.4 19.9 Property, plant and equipment 3,062.0 3,120.9 Less accumulated depletion, depreciation and amortization (1,886.4) (1,913.3) _____________________________________________________________________________________ NET PROPERTY, PLANT AND EQUIPMENT 1,175.6 1,207.6 _____________________________________________________________________________________ Other assets 27.1 33.6 _____________________________________________________________________________________ $ 1,318.0 1,467.7 _____________________________________________________________________________________ LIABILITIES AND STOCKHOLDERS' EQUITY _____________________________________________________________________________________ CURRENT LIABILITIES: Accounts payable and accrued expenses 135.9 199.8 Income taxes payable 2.5 .8 _____________________________________________________________________________________ TOTAL CURRENT LIABILITIES 138.4 200.6 _____________________________________________________________________________________ Deferred income taxes 69.4 49.6 Long-term debt 505.4 691.6 Other liabilities 161.2 155.2 _____________________________________________________________________________________ STOCKHOLDERS' EQUITY: Capital stock 5.1 5.0 Additional paid-in capital 40.5 14.8 Retained earnings 398.2 352.8 _____________________________________________________________________________________ 443.8 372.6 Loans to ESOP (.2) (1.9) _____________________________________________________________________________________ TOTAL STOCKHOLDERS' EQUITY 443.6 370.7 _____________________________________________________________________________________ $ 1,318.0 1,467.7 _____________________________________________________________________________________ See accompanying notes to consolidated financial statements.
THE LOUISIANA LAND AND EXPLORATION COMPANY CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) (Millions, except per share data)
Three months ended Nine months ended September 30, September 30, 1996 1995 1996 1995 _____________________________________________________________________________________ REVENUES: Oil and gas $136.7 116.0 420.2 340.4 Refined products 38.5 97.1 263.5 272.5 Gain (loss) on sale of petroleum assets 1.7 (.7) 2.0 1.5 Other 2.3 (.4) 7.1 3.8 _____________________________________________________________________________________ 179.2 212.0 692.8 618.2 _____________________________________________________________________________________ COSTS AND EXPENSES: Lease operating and facility expenses 30.2 29.0 88.1 88.4 Refinery cost of sales and operating expenses 38.3 96.3 254.4 267.7 Dry holes and exploratory charges 25.8 17.7 69.1 49.8 Depletion, depreciation and amortization 42.7 40.7 130.8 116.6 Taxes, other than on earnings 5.3 5.8 17.8 18.5 General, administrative and other expenses 10.1 9.8 29.4 30.3 Interest and debt expenses 8.3 9.9 26.4 28.9 _____________________________________________________________________________________ 160.7 209.2 616.0 600.2 _____________________________________________________________________________________ Earnings before income taxes 18.5 2.8 76.8 18.0 Income tax expense 4.8 1.0 25.3 6.3 _____________________________________________________________________________________ NET EARNINGS $ 13.7 1.8 51.5 11.7 _____________________________________________________________________________________ EARNINGS PER SHARE $ 0.40 0.05 1.51 0.35 _____________________________________________________________________________________ AVERAGE SHARES 34.4 33.6 34.1 33.5 _____________________________________________________________________________________ CASH DIVIDENDS PER SHARE $ 0.06 0.06 0.18 0.18 _____________________________________________________________________________________ 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, 1996 1995 _____________________________________________________________________________________ CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ 51.5 11.7 Adjustments to reconcile to cash flows from operations: Gain on sale of petroleum assets (2.0) (1.5) Depletion, depreciation and amortization 130.8 116.6 Deferred income taxes 19.8 4.7 Dry holes and impairment charges 41.6 29.9 Other 13.0 3.6 _____________________________________________________________________________________ 254.7 165.0 Changes in operating assets and liabilities, net of the sale of refining assets: Net (increase) decrease in receivables (18.8) 21.7 Net (increase) decrease in inventories (4.2) 11.1 Net decrease in prepaid items 3.7 3.0 Net increase (decrease) in payables 33.7 (38.5) Other (.6) .6 _____________________________________________________________________________________ NET CASH FLOWS FROM OPERATING ACTIVITIES 268.5 162.9 _____________________________________________________________________________________ CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (164.4) (133.7) Proceeds from asset sales 70.4 7.6 Other (9.8) (14.5) _____________________________________________________________________________________ NET CASH FLOWS FROM INVESTING ACTIVITIES (103.8) (140.6) _____________________________________________________________________________________ CASH FLOWS FROM FINANCING ACTIVITIES: Additions to long-term debt - 40.5 Repayments of long-term debt (186.2) (68.3) Advances against cash surrender value 9.6 9.0 Dividends (6.1) (6.0) Repayment of loans to ESOP 1.7 2.6 Other 18.3 (5.0) _____________________________________________________________________________________ NET CASH FLOWS FROM FINANCING ACTIVITIES (162.7) (27.2) _____________________________________________________________________________________ INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 2.0 (4.9) _____________________________________________________________________________________ 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, 1996, and the results of operations and cash flows for the three-month and nine-month periods ended September 30, 1996 and 1995. Maryland General Corporate Law was amended whereby repurchased stock of a corporation constitutes authorized but unissued stock rather than treasury stock. Accordingly, effective January 1, 1994, the par value of treasury stock ($.7 million) has been reclassed as a reduction of capital stock issued. The cost of treasury stock in excess of par value has been charged to additional paid-in capital ($81.5 million), to the extent available, and the balance ($82.2 million) has been charged to retained earnings. All capital stock transactions subsequent to January 1, 1994 are reflected as either issuances or retirements of capital stock. This change in the law had no effect on total stockholders' equity. 2. On July 31, 1996, the Company completed the sale of its crude oil refinery and terminal near Mobile, Alabama, including crude oil and refined product inventories, for approximately $70 million resulting in a pretax gain of approximately $2 million. The net book value of refinery property, plant and equipment at that date totaled approxi- mately $33 million. The following table sets forth the refinery operating results for the periods indicated.
Periods Ended Periods ended September 30, 1996 September 30, 1995 One Seven Three Nine Month Months Months Months _____________________________________________________________________________________ REFINING OPERATIONS Refining Operating Profit (Loss): Revenues: Refined products* $ 41.4 280.4 103.3 294.9 Other - .3 .1 .2 _____________________________________________________________________________________ 41.4 280.7 103.4 295.1 _____________________________________________________________________________________ Cost and expenses: Cost of sales* 37.3 244.7 92.7 260.3 Operating expenses 3.9 26.6 9.8 29.8 Depreciation .2 1.1 .5 1.3 Taxes, other than income .1 .9 .8 2.3 _____________________________________________________________________________________ 41.5 273.3 103.8 293.7 _____________________________________________________________________________________ $ (.1) 7.4 (.4) 1.4 _____________________________________________________________________________________ *Before the elimination of intercompany transfers to the Company's refinery $ 2.9 16.9 6.2 22.4 _____________________________________________________________________________________
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 3. For the three months ended September 30, 1996 and 1995, interest costs incurred were $10.8 million and $13.4 million, respectively, of which $2.5 million and $3.5 million, respectively, were capitalized as part of the cost of property, plant and equipment. For the nine months ended September 30, 1996 and 1995, interest costs incurred were $35.2 million and $41.0 million, respectively, of which $8.8 million and $12.1 million, respectively, were capitalized as part of the cost of property, plant and equipment. 4. 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. 5. 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, 1995. 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, 1996 and 1995 are presented in accordance with Regulation S-X, Rule 10-01(b).
(Unaudited) Three months ended Nine months ended September 30, September 30, 1996 1995 1996 1995 ________________________________________________________________________________ Gross revenues $16.5 14.0 69.6 59.7 ________________________________________________________________________________ Operating profit 7.3 2.8 31.6 23.1 ________________________________________________________________________________ Net earnings (loss) $ 2.2 .6 14.0 8.8 ________________________________________________________________________________
6. The Company has been notified by the U.S. Environmental Protection Agency that it is one of many Potentially Responsible Parties (PRP) with respect to certain National Priorities List sites. Based on its evaluation of the 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 the results of operations, cash flow or financial position of the Company. 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 AUDITORS' 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, 1996, and the related consolidated statements of earnings and cash flows for the three- month and nine-month periods ended September 30, 1996 and 1995. These consolidated 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, 1995, and the related consolidated statements of earnings, stockholders' equity, and cash flows for the year then ended (not presented herein); and in our report dated February 2, 1996, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 1995, 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 11, 1996 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. REVIEW OF OPERATIONS Third quarter operations resulted in pretax earnings of $18.5 million for the 1996 quarter and $76.8 million for the first nine months. These results were up significantly from the pretax earnings of $2.8 million and $18.0 million for the respective 1995 periods. The improvement in 1996 net earnings was primarily attributable to higher natural gas prices and volumes and higher crude oil prices. The 1996 third quarter and first nine months also benefitted from a nonrecurring pretax gain of approximately $2.0 million from the sale of the Company's crude oil refinery and terminal near Mobile, Alabama. OIL AND GAS OPERATIONS Revenues from the Company's oil and gas operations for the third quarter of 1996 were up $21 million from the third quarter of 1995. Natural gas revenues were up $20 million as a result of higher prices ($10 million) and deliveries ($10 million). Even though crude oil volumes were down, liquids revenues were up $1 million primarily due to higher crude oil prices. In the first nine months of 1996 revenues from the Company's oil and gas operations were up almost $80 million from the comparable 1995 period. An increase in natural gas revenues of $75 million, which resulted from higher prices ($55 million) and deliveries ($20 million), accounted for most of the increase. Liquids revenues were up $4 million as a result of higher crude oil prices ($18 million), which more than offset the effect of reduced volumes ($12 million). Crude oil volumes in the third quarter and first nine months of 1996 decreased 7500 and 2900 barrels per day (BPD), respectively, from the comparable 1995 periods primarily due to lower North Sea and other foreign volumes. The decline in North Sea volumes was attributable to natural declines and the shutdown of the Tiffany and Toni fields at T- Block during tie-in of the Thelma field. Volumes from other foreign operations were down due to lower volumes at the KAKAP concession offshore Indonesia and the effect of the 1995 fourth quarter sale of the Company's Canadian properties. New wells onstream at south Louisiana properties contributed significantly to domestic volumes for both 1996 periods. However, natural production declines at mature properties partially offset these production increases. Natural gas deliveries were up 60 million and 44 million cubic feet per day in the third quarter and first nine months of 1996, respectively, primarily due to higher domestic volumes. Domestic deliveries were up due to new wells onstream, the return to production of wells shut-in for repairs and maintenance, and the return to production of domestic wells voluntarily curtailed during the 1995 periods due to low prices. The higher domestic deliveries were partially offset by the effects of natural declines at mature producing properties and wells shut-in during 1996 for repairs and maintenance. While North Sea deliveries were down in the 1996 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (CONTINUED) third quarter, deliveries were up in the nine month period due to increased demand. Other foreign production, reflecting the sale of the Company's Canadian properties, was down in both 1996 periods. Also, contributing to the increases, were higher volumes from the Company's 50%- owned affiliate, CLAM Petroleum Company. Lease operating and facility expenses were up in both 1996 periods as higher workover costs, repairs and maintenance costs and facilities expenses more than offset the reductions in operating costs. Depletion, depreciation and amortization (DD&A) was up $2 million and $14 million in the 1996 third quarter and first nine months, respectively, as a result of DD&A associated with new wells onstream. Dry holes and exploratory charges increased in both 1996 periods due primarily to an increased exploration effort and higher seismic costs incurred. General, administrative and other expenses were down in the first nine months of 1996 due to the Company's continuing efforts to minimize expenses. Interest and debt expenses were lower in both periods primarily as a result of the Company's accelerated debt paydown. LIQUIDITY AND CAPITAL RESOURCES In the first nine months of 1996, the Company generated approximately $269 million in cash from operations which, along with the $70 million proceeds from the sale of the refinery and available cash, was used for capital projects ($164 million), repayment of long-term debt ($186 million) and dividends ($6 million). In 1995, the Company initiated a hedging program designated to minimize the price risks associated with future natural gas and crude oil production. This program utilizes futures, forwards, options and swap contracts in series of transactions designed to set a floor price for future production and at the same time allow the Company to participate in market price increases above a set level over the floor price. At September 30, 1996, approximately 24 trillion British Thermal Units (BTU) of domestic gas production for the remainder of 1996 were covered by a series of transactions designed to set an average floor price of $1.83 per million BTU and at the same time allow the Company to participate in natural gas price increases above the floor price and outside of specific ranges. The Company's non-participation in price increases above the floor price was limited to $0.18 per million BTU. For 1997, approximately 93 trillion BTU of domestic gas production were similarly hedged at an average floor price of $1.84 per million BTU with the Company's non- participation in price increases above the floor price limited to $0.17 per million BTU. For 1998, approximately 34 trillion BTU of domestic gas production were similarly hedged at an average floor price of $1.76 per million BTU with the Company's non-participation in price increases above the floor price limited to $0.20 per million BTU. While these transactions have no carrying value, their fair value, represented by the estimated amount that would be required to terminate the contracts, were ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (CONTINUED) a net cost of $0.9 million for the 1996 hedges, a net benefit of $3.7 million for the 1997 hedges and a net benefit of $1.7 million for the 1998 hedges. (The Company estimates that its domestic natural gas production averages approximately 1.07 million BTU for each thousand cubic feet.) In addition, approximately 3.6 million barrels of the Company's worldwide crude oil production for the remainder of 1996 were similarly hedged at an average floor price of $17.40 per barrel with the Company's non- participation in price increases above the floor price limited to $1.35 per barrel. These transactions also do not have carrying values, but their fair value at September 30, 1996 amounted to a net cost of $2.8 million. On June 28, 1996, the Company amended its $450 million revolving credit agreement with a syndicate of banks to reduce the banks' commitments to $350 million, extend the maturity for one year to June 30, 2001, reduce interest rates and fees and improve other terms and conditions favorable to the Company. Effective July 31, 1996, the Company completed the sale of its crude oil refinery and terminal near Mobile, Alabama for a pretax gain of approximately $2 million. The proceeds from the sale of the refinery and associated inventories were used to reduce long-term debt by approximately $70 million. The Company expects to fund its 1996 expenditures, including an increased level of capital and exploration expenditures of approximately $250 million, primarily from operating cash flows. The Company's expenditures are continually reviewed, and revised as necessary, based on perceived current and long-term economic conditions. CAPITAL STOCK, DIVIDENDS AND OTHER MARKET DATA As more fully discussed in Note 14 of "Notes to Consolidated Financial Statements" in the Company's 1995 Annual Report to Shareholders, the Company's Board of Directors in 1986 declared a dividend to shareholders consisting of Capital Stock Purchase Rights ("Rights") issued under the Shareholder Rights Agreement ("Agreement") to protect shareholders. At its regularly scheduled meeting held on May 9, 1996, the Board of Directors has amended and restated the terms of the Agreement to extend the expiration date to June 6, 2006, increase the exercise price of Rights to $175, lower the ownership threshold at which Rights become exercisable to 20% and eliminate the provision that excluded an all-cash offer made to shareholders for all outstanding shares. 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, 1996 1995 1996 1995 _____________________________________________________________________________________ Sales to unaffiliated customers:* Domestic $ 141.1 169.0 567.3 494.5 North Sea 30.3 33.3 100.4 99.6 Other foreign 5.5 10.1 18.0 20.3 _____________________________________________________________________________________ 176.9 212.4 685.7 614.4 Interest and other income 2.3 (.4) 7.1 3.8 _____________________________________________________________________________________ Total revenues $ 179.2 212.0 692.8 618.2 _____________________________________________________________________________________ Earnings (loss) before income taxes:* Operating profit (loss): Domestic 33.0 19.5 113.4 63.9 North Sea 7.2 9.6 29.3 27.0 Other foreign (4.0) (4.5) (11.2) (12.7) _____________________________________________________________________________________ 36.2 24.6 131.5 78.2 Other income (expense), net (17.7) (21.8) (54.7) (60.2) _____________________________________________________________________________________ Earnings (loss) before income taxes $ 18.5 2.8 76.8 18.0 _____________________________________________________________________________________ Capital expenditures: Exploration: Domestic 36.4 14.4 80.3 37.2 North Sea .6 - 1.4 .4 Other foreign 7.7 5.0 14.1 13.2 _____________________________________________________________________________________ 44.7 19.4 95.8 50.8 _____________________________________________________________________________________ Development: Domestic 13.1 16.3 44.2 44.7 North Sea 3.6 2.8 13.9 9.9 Other foreign 2.1 2.3 6.9 9.3 _____________________________________________________________________________________ 18.8 21.4 65.0 63.9 _____________________________________________________________________________________ 63.5 40.8 160.8 114.7 Capitalized interest 2.5 3.5 8.8 12.1 Other 1.0 1.9 2.4 5.9 _____________________________________________________________________________________ $ 67.0 46.2 172.0 132.7 _____________________________________________________________________________________ * Includes refinery sales and operating profit through July 31, 1996. See Note 2 of "Notes to Consolidated Financial Statements."
THE LOUISIANA LAND AND EXPLORATION COMPANY OPERATING DATA
Three months ended Nine months ended September 30, September 30, 1996 1995 1996 1995 _____________________________________________________________________________________ OIL AND GAS OPERATIONS1 CRUDE AND CONDENSATE2 Production (thousands of barrels per day): Domestic 21.3 20.1 21.0 20.8 North Sea 13.7 18.3 15.4 17.2 Other foreign 3.4 7.4 3.7 4.9 _____________________________________________________________________________________ 38.4 45.8 40.1 42.9 _____________________________________________________________________________________ Average price received (per barrel): Domestic $20.87 17.47 19.76 18.16 North Sea 19.54 16.52 18.84 17.31 Other foreign 17.93 14.87 17.66 14.90 Consolidated 20.14 16.67 19.21 17.45 _____________________________________________________________________________________ PLANT PRODUCTS Production (thousands of barrels per day): Domestic 2.6 2.6 2.2 2.9 North Sea .8 1.1 .9 1.0 _____________________________________________________________________________________ 3.4 3.7 3.1 3.9 _____________________________________________________________________________________ Average price received (per barrel): Domestic $12.49 11.58 12.46 11.43 North Sea 14.21 11.83 15.03 13.37 Consolidated 12.90 11.66 13.20 11.92 _____________________________________________________________________________________ NATURAL GAS Production (millions of cubic feet per day): Domestic 289.4 229.5 272.3 237.0 North Sea 24.1 27.1 30.1 25.1 Other foreign - .9 - 1.8 CLAM Petroleum Company 30.6 26.1 44.9 39.7 _____________________________________________________________________________________ 344.1 283.6 347.3 303.6 _____________________________________________________________________________________ Average price received (per MCF): Domestic $ 2.12 1.78 2.39 1.65 North Sea 2.10 1.74 2.17 2.14 Other foreign - 0.74 - .68 CLAM Petroleum Company 2.93 2.72 2.79 2.64 Consolidated 2.19 1.86 2.42 1.81 _____________________________________________________________________________________ 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, 1996 1995 1996 1995 _____________________________________________________________________________________ GROSS WELLS DRILLED Working Interest Exploratory: Oil 2 4 4 5 Gas 2 - 7 8 Dry 6 3 13 7 _____________________________________________________________________________________ 10 7 24 20 _____________________________________________________________________________________ Development: Oil 5 7 15 14 Gas 4 2 7 4 Dry - - - - _____________________________________________________________________________________ 9 9 22 18 _____________________________________________________________________________________ Total working interest 19 16 46 38 Royalty Interest 4 9 11 20 _____________________________________________________________________________________ Total wells 23 25 57 58 _____________________________________________________________________________________ NET WELLS DRILLED Exploratory: Oil 1.3 1.4 2.0 1.8 Gas 1.5 - 3.6 3.6 Dry 1.7 1.3 4.2 2.7 _____________________________________________________________________________________ 4.5 2.7 9.8 8.1 _____________________________________________________________________________________ Development: Oil .6 1.3 1.7 2.2 Gas .9 .7 2.4 1.2 Dry - - - - _____________________________________________________________________________________ 1.5 2.0 4.1 3.4 _____________________________________________________________________________________ Total net wells 6.0 4.7 13.9 11.5 _____________________________________________________________________________________
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 12, 1996 EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AND CONSOLIDATED STATEMENT OF EARNINGS OF THE LOUISIANA LAND AND EXPLORATION COMPANY AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1996 SEP-30-1996 12,300 0 86,200 0 400 106,900 3,062,000 1,886,400 1,318,000 138,400 505,400 5,100 0 0 438,500 1,318,000 683,700 692,800 0 560,200 29,400 0 26,400 76,800 25,300 51,500 0 0 0 51,500 1.51 1.51 -----END PRIVACY-ENHANCED MESSAGE-----