-----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, I6v5BEOdPpZ9e8dsS/ZMMRRhs2y5ju5TUZv7ecvsGcs9qgaY7z6onkhlX/dMnncL RTBE2BjWtH3xMZClTI317Q== 0000833320-96-000010.txt : 19960729 0000833320-96-000010.hdr.sgml : 19960729 ACCESSION NUMBER: 0000833320-96-000010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960625 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960726 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BURLINGTON RESOURCES INC CENTRAL INDEX KEY: 0000833320 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 911413284 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09971 FILM NUMBER: 96599287 BUSINESS ADDRESS: STREET 1: 5051 WESTHEIMER STREET 2: SUITE 1400 CITY: HOUSTON STATE: TX ZIP: 77056 BUSINESS PHONE: 7136249500 MAIL ADDRESS: STREET 1: 5051 WESTHEIMER STREET 2: STE 1400 CITY: HOUSTON STATE: TX ZIP: 77056 8-K 1 BURLINGTON RESOURCES FORM 8-K DATED 06/25/96 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------------ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 July 11, 1996 (Date of earliest event reported) BURLINGTON RESOURCES INC. (Exact name of registrant as specified in its charter) Delaware 1-9971 91-1413284 (State or other (Commission (IRS Employer Jurisdiction of File Number) Identification Incorporation) Number) 5051 Westheimer, Suite 1400, Houston, Texas 77056 (Address of principal executive offices, zip code) Registrant's telephone number including area code: (713) 624-9500 Item 5. OTHER EVENTS On July 11, 1996 Burlington Resources Inc. ("BR") announced it will accelerate its on-going divestiture program. Since 1994, BR has sold over 9,000 wells. Over the next twelve months, BR plans to sell its interest in approximately 20,000 wells thus reducing its pre-1994 well count over 50 percent. The proved reserves associated with this prospective divestiture approximate 800 BCFE while the related production represents about 10 percent of BR's currently produced volumes. This accelerated divestiture program will allow BR to reorganize and reduce the number of its operating areas from five to three. The accelerated divestiture program and reorganization will result in more than a 20 percent reduction in the company's 1995 level of production expenses and employee count and over a 10 percent reduction in corporate administrative expenses. The company plans to substantially complete the reorganization prior to the end of the third quarter. BR's Board of Directors authorized the repurchase of an additional 10 million shares of common stock from time to time depending on market conditions. A copy of the Press Release is attached as an Exhibit to this report. Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits Description 99.1 Press Release dated July 11, 1996 FORWARD-LOOKING STATEMENTS This report (including the attached exhibit) contains projections and other forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect BR's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved and actual results could differ materially from those projected as a result of certain factors. A discussion of these factors is included in periodic reports previously filed with the Securities and Exchange Commission. -2- SIGNATURE 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. BURLINGTON RESOURCES INC. By /s/ Hays R. Warden ------------------------------------- Hays R. Warden Senior Vice President and Controller, and Chief Accounting Officer Date: July 25, 1996 -3- EXHIBIT INDEX Sequentially Exhibit Numbered Number Exhibit Page 99.1 Press release dated July 11, 1996 5 -4- EX-99.1 2 PRESS RELEASE DOCUMENT FOR 8-K BURLINGTON RESOURCES News Release P.O. Box 4239 Houston, TX 77056-2124 (713) 624-9364 Contact: James Leahy BURLINGTON RESOURCES REPORTS STRONG SECOND QUARTER EARNINGS A MAJOR DIVESTITURE PROGRAM FOR NON-STRATEGIC PROPERTIES A CORPORATE REORGANIZATION AND AUTHORIZATION TO REPURCHASE AN ADDITIONAL 10 MILLION SHARES OF COMMON STOCK Second Quarter Earnings Houston, Texas, July 11, 1996 - Burlington Resources (BR) reported second quarter 1996 operating income of $96 million and net income of $48 million or $.38 per share. For the same period last year, the company reported operating income of $125,000 and net income of $2 million or $.02 per share. Operating cash flow for the first half increased 35% to $272 million as compared to $201 million for the first half of 1995. Bobby Shackouls, President and CEO, stated that "this period's operating income is the highest of any quarter since the spin-off of El Paso Natural Gas Company in 1992. The fundamentals underpinning natural gas prices continue to be strong and we are optimistic about our future prospects." Natural gas sales volumes averaged 1,193 million cubic feet per day (mmcf/d) during the second quarter compared to 1,149 mmcf/d in the second quarter of 1995. Second quarter oil sales volumes increased to 50,400 barrels per day from 48,000 barrels per day a year ago. Realized natural gas prices in the second quarter increased from $1.22 per thousand cubic feet (mcf) in 1995, to $1.75 per mcf in 1996. Second quarter realized oil prices moved up from $17.07 per barrel in 1995 to $20.29 per barrel in 1996. Gas production increased from first quarter levels in spite of the volume reductions experienced in the San Juan Basin for routine annual maintenance. Gas volumes achieved a record level of approximately 1,250 mmcf/d at the end of the quarter as San Juan production returned to normal volumes and large production increases were realized from the High Island A-371 platform in the Gulf of Mexico. Second quarter oil volumes increased over first quarter primarily as a result of drilling success in the company's River Run project in the Williston Basin. During the quarter, BR acquired 912,500 shares of its common stock to bring total 1996 purchases to 1,374,900 shares. Since it began acquiring stock in 1988, the company has purchased approximately 28,692,000 shares or 19% of its original common stock capitalization. Yesterday, the company's Board of Directors authorized management to repurchase an additional 10 million shares of common stock from time to time depending on market conditions. Divestiture Program BR said it will accelerate its divestiture program which has improved operating efficiency and financial performance through the sale of non-strategic properties. Since 1994, BR has sold over 9,000 wells. Over the next twelve months, BR plans to sell its interest in approximately 20,000 wells thus reducing its pre-1994 well count by over 50%. The proved reserves associated with this prospective divestiture approximate 800 BCFE while the related production represents about 10% of BR's currently produced volumes. Shackouls stated: "This program is designed to eliminate non-strategic properties, allowing the company to improve its operating focus on those assets that have important upside potential. Essentially, this strategy is a redeployment of assets into higher return projects. It is driven by the company's desire to increase its efficiency and exposure to meaningful volume growth. The divestiture program comes at a time in our industry when the market for producing properties is excellent with acquisition capital readily available." Reorganization This accelerated divestiture program will allow BR to reorganize and reduce the number of its operating areas from five to three. The accelerated divestiture program and reorganization will result in more than a 20% reduction in the company's 1995 level of production expenses and employee count and over a 10% reduction in corporate administrative expenses. The company plans to substantially complete the reorganization prior to the end of the third quarter. The company will continue to manage its San Juan Basin operations out of its office located in Farmington, New Mexico. BR's Denver regional office will be closed and all of the company's remaining activities in the Rocky Mountain, Permian Basin and Mid-Continent areas will be managed by BR's existing office located in Midland, Texas. The two regional offices located in Houston which currently oversee the company's onshore Gulf Coast and offshore Gulf of Mexico operations will be merged to form a single Gulf Coast Division. Going forward the company intends to conduct operations utilizing the Burlington Resources name rather than that of Meridian Oil. Sale Proceeds Proceeds from the divestiture program will be used to fund the company's expanded exploration program and continued share repurchases. Shackouls commented: "This asset rationalization program will position BR to continue as a premier low cost producer of oil and gas, focused on increased profitability, with substantial financial resources to invest in high quality exploration opportunities and in our common stock." Financial statement is attached. FORWARD-LOOKING STATEMENTS This press release contains projections and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the Company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved and actual results could differ materially from those projected as a result of certain factors. A discussion of these factors is included in the Company's periodic reports filed with the Securities and Exchange Commission. DIVESTITURE PROGRAM PACKAGE RESERVES (BCFE) Black Warrior Basin 90 - 130 Texas Gulf Coast 150 - 200 Rocky Mountain 50 - 80 Permian Basin 150 - 180 San Juan Basin 270 - 300 BURLINGTON RESOURCES INC. CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
SECOND QUARTER SIX MONTHS -------------------- ------------------- 1996 1995 1996 1995 ---- ---- ---- ---- (Dollars in Millions, Except per Share Amounts) Revenues ................................................. $ 295 $ 211 $ 551 $ 426 Costs and Expenses ....................................... 199 211 392 424 --- --- --- --- Operating Income ......................................... 96 - 159 2 Interest Expense ......................................... 28 28 57 54 Other Income (Expense) - Net ............................. 1 (1) 2 (1) -- -- -- -- Income (Loss) Before Income Taxes ........................ 69 (29) 104 (53) Income Tax Expense (Benefit) ............................. 21 (31) 18 (50) Net Income (Loss) ........................................ $ 48 $ 2 $ 86 $ (3) ===== ===== ===== ===== Earnings (Loss) per Common Share ......................... $ .38 $ .02 $ .68 $(.02) ===== ===== ===== ===== Average Common Shares .................................... 126 127 127 127 === === === ===
This financial statement should be read in conjunction with the attached press release. -----END PRIVACY-ENHANCED MESSAGE-----