-----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, RtLt5OTG++V3tyJgkNlVRuOcXO3z1fDOSQs0Kin0eB5uWHoA7KkumDzQJfzkkNuT 408InwRzCk1rRkdG+vUTcA== 0000833320-95-000001.txt : 19950516 0000833320-95-000001.hdr.sgml : 19950516 ACCESSION NUMBER: 0000833320-95-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 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: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09971 FILM NUMBER: 95538527 BUSINESS ADDRESS: STREET 1: 5051 WESTHEIMER STREET 2: SUITE 1400 CITY: HOUSTON STATE: TX ZIP: 77056 BUSINESS PHONE: 7136249500 MAIL ADDRESS: STREET 1: 999 THIRD AVENUE CITY: SEATTLE STATE: WA ZIP: 98104-4097 10-Q 1 FORM 10-Q FOR PERIOD ENDED 3/31/95 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1995 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-9971 BURLINGTON RESOURCES INC. (Exact name of registrant as specified in its charter) Delaware 91-1413284 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 5051 Westheimer, Houston, Texas 77056 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (713) 624-9500 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. Class Outstanding Common Stock, par value $.01 per share, as of March 31, 1994 126,549,354 PART 1 - FINANCIAL INFORMATION ITEM 1. Financial Statements BURLINGTON RESOURCES INC. CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
FIRST QUARTER 1995 1994 (In Thousands, Except per Share Amounts) Revenues.........................................$ 214,569 $ 275,219 Costs and Expenses............................... 212,858 206,040 --------- --------- Operating Income................................. 1,711 69,179 Interest Expense................................. 26,365 18,056 Other Income (Expense) - Net..................... 533 (2,280) --------- --------- Income (Loss) Before Income Taxes................ (24,121) 48,843 Income Tax Expense (Benefit)..................... (19,297) 1,123 --------- --------- Net Income (Loss)................................$ (4,824) $ 47,720 ========= ========= Earnings (Loss) per Common Share.................$ (.04) $ .37 ========= =========
See Accompanying Notes to Consolidated Financial Statements. - 2 - BURLINGTON RESOURCES INC. CONSOLIDATED BALANCE SHEET (UNAUDITED)
March 31, December 31, 1995 1994 (In Thousands) ASSETS Current Assets: Cash and Short-term Investments.............................$ 44,503 $ 19,898 Accounts Receivable......................................... 161,133 193,825 Inventories................................................. 19,135 35,188 Other Current Assets........................................ 23,475 17,191 ----------- ----------- 248,246 266,102 ----------- ----------- Oil & Gas Properties (Successful Efforts Method)............. 5,801,434 5,689,135 Other Properties............................................. 487,520 572,490 ----------- ----------- 6,288,954 6,261,625 Accumulated Depreciation, Depletion and Amortization........ 1,957,024 1,904,212 ----------- ----------- Properties - Net............................................ 4,331,930 4,357,413 ----------- ----------- Other Assets................................................. 168,160 185,095 ----------- ----------- Total Assets..............................................$ 4,748,336 $ 4,808,610 =========== =========== LIABILITIES Current Liabilities: Accounts Payable............................................$ 148,251 $ 193,819 Taxes Payable............................................... 37,592 47,080 Dividends Payable........................................... 17,395 17,434 Other Current Liabilities................................... 2,466 3,688 ----------- ----------- 205,704 262,021 ----------- ----------- Long-term Debt............................................... 1,351,575 1,309,137 ----------- ----------- Deferred Income Taxes........................................ 456,536 480,648 ----------- ----------- Other Liabilities and Deferred Credits....................... 187,596 188,763 ----------- ----------- Commitments and Contingent Liabilities STOCKHOLDERS' EQUITY Common Stock, Par Value, $.01 Per Share (Authorized 325,000,000 Shares; Issued 150,000,000 Shares).. 1,500 1,500 Paid-in Capital.............................................. 2,936,034 2,936,374 Retained Earnings............................................ 529,183 551,385 ----------- ----------- 3,466,717 3,489,259 Cost of Treasury Stock (1995, 23,450,646 Shares; 1994, 23,491,040 Shares)......... 919,792 921,218 ----------- ----------- Common Stockholders' Equity.................................. 2,546,925 2,568,041 ----------- ----------- Total Liabilities and Common Stockholders' Equity..........$ 4,748,336 $ 4,808,610 =========== ===========
See Accompanying Notes to Consolidated Financial Statements - 3 - BURLINGTON RESOURCES INC. CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
THREE MONTHS 1995 1994 (In Thousands) Cash Flows From Operating Activities: Net Income (Loss)..............................................$ (4,824) $ 47,720 Adjustments to Reconcile Net Income (Loss) to Net Cash Provided By Operating Activities: Depreciation, Depletion and Amortization...................... 95,745 74,888 Deferred Income Taxes......................................... (24,097) (10,306) Exploration Costs............................................. 6,724 7,518 Working Capital Changes: Accounts Receivable.......................................... 32,692 (3,270) Inventories.................................................. 16,053 (1,465) Other Current Assets......................................... (6,284) (7,429) Accounts Payable............................................. (45,568) 1,614 Taxes Payable................................................ (9,488) 14,688 Other Current Liabilities.................................... (1,261) (14,317) Gain on Sales and Other........................................ 40,850 35,411 ---------- --------- Net Cash Provided By Operating Activities................... 100,542 145,052 ---------- --------- Cash Flows From Investing Activities: Additions to Properties........................................ (141,098) (125,955) Proceeds from Sales and Other.................................. 70,044 2,029 --------- --------- Net Cash Used In Investing Activities....................... (71,054) (123,926) --------- --------- Cash Flows From Financing Activities: Proceeds from Long-term Financing.............................. 150,000 - Reduction in Long-term Debt.. ................................. (106,811) (2,575) Dividends Paid................................................. (17,417) (17,919) Treasury Stock Transactions - Net. ............................ 1,426 1,696 Other.......................................................... (47,485) (11,891) --------- --------- Net Cash Used In Financing Activities....................... (20,287) (30,689) --------- --------- Increase (Decrease) in Cash and Short-term Investments.......... 9,201 (9,563) Cash Provided By Discontinued Operations........................ 15,404 7,811 Cash and Short-term Investments: Beginning of Year............................................. 19,898 19,784 --------- --------- End of Period.................................................$ 44,503 $ 18,032 ========= =========
See Accompanying Notes to Consolidated Financial Statements. - 4 - BURLINGTON RESOURCES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. BASIS OF PRESENTATION The 1994 Annual Report on Form 10-K of Burlington Resources Inc. (the Company") includes certain definitions and a summary of significant accounting policies and should be read in conjunction with this Quarterly Report on Form 10-Q. The statements for the periods presented herein are unaudited, condensed and do not contain all information required by generally accepted accounting principles to be included in a full set of financial statements. In the opinion of management, all material adjustments necessary to present fairly the results of operations have been included. All such adjustments are of a normal, recurring nature. The results of operations for any interim period are not necessarily indicative of the results of operations for the entire year. Earnings per common share is based on the weighted average number of common shares outstanding during the year. The weighted average number of common shares outstanding was 127 million and 131 million for the first three months of 1995 and 1994, respectively. 2. RECLASSIFICATION The Company's 1995 revenues include amounts from the sale of NGLs, less the actual costs incurred to gather, treat, process and transport the hydrocarbons to market. To conform to current presentation, the Company reclassified approximately $45 million of costs and expenses to revenues for the first three months of 1994. The reclassification had no effect on operating income. - 5 - ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Financial Condition and Liquidity The total long-term debt to capital (total long-term debt and stockholders' equity) ratio at March 31, 1995, and December 31, 1994, was 35 percent and 34 percent, respectively. In March 1995, the Company issued $150 million of 8.20% Debentures due March 15, 2025. The net proceeds were used for general corporate purposes, including acquisition of oil and gas properties, repayment of commercial paper, capital expenditures and repurchases of the Company's common stock. The Company's credit facilities are comprised of a $600 million revolving credit agreement that expires in July 1999 and a $300 million revolving credit agreement that expires July 1995, but is renewable annually by mutual consent. As of March 31, 1995, there were no borrowings outstanding under the credit facilities although borrowing capacity is reduced by outstanding commercial paper. At March 31, 1995, the Company had outstanding commercial paper borrowings of $153 million at an average interest rate of 6.30 percent. The Company also has the capacity to issue $350 million of debt securities under shelf registration statements filed with the Securities and Exchange Commission. Net cash provided by operating activities for the first three months of 1995 was $101 million compared to $145 million for the first three months of 1994. The decrease was primarily due to lower operating income. The Company continued the divestiture of marginal and non-strategic properties that began in June 1994. During the first quarter of 1995, the Company divested 1,046 working interest wells for approximately $18 million. In February 1995, the Company completed the sale of its intrastate natural gas pipeline systems and its underground natural gas storage facility, including gas-in-storage inventory, for approximately $80 million. The Company is involved in certain environmental proceedings and other related matters. Although it is possible that new information or future developments could require the Company to reassess its potential exposure related to these matters, the Company believes, based upon available information, the resolution of these issues, individually and in the aggregate, will not have a materially adverse effect on the consolidated financial position or results of operations of the Company. Capital Expenditures Capital expenditures for the first three months of 1995 totaled $141 million compared to $126 million for the same period in 1994. Capital expenditures are currently projected to be approximately $580 million for all of 1995 and are expected to be primarily for the development and exploration of oil and gas properties and reserve acquisitions. Capital expenditures will be funded from internal cash flow supplemented, as needed, by external financing. - 6 - Dividends On April 6, 1995, the Board of Directors declared a common stock quarterly dividend of $0.1375 per share, payable July 3, 1995. Results of Operations - First Quarter 1995 Compared to First Quarter 1994 The Company reported a net loss of $5 million or $.04 per share for the first quarter of 1995 compared to net income of $48 million or $.37 per share in 1994. Operating income for the first quarter of 1995 was $2 million compared to $69 million in 1994. Revenues were $215 million for the first quarter of 1995 compared to $275 million in 1994. Natural gas sales volumes improved 15 percent to 1,145 MMCF per day which increased revenues $26 million. Average oil sales prices improved 18 percent to $16.43 per barrel and oil sales volumes improved 11 percent to 47.0 MBbls per day which increased revenues $11 million and $6 million, respectively. Gas and oil sales volumes increased primarily due to continued development of the Company's oil and gas properties and producing property acquisitions. The revenue increases were more than offset by a 37 percent decline in 1995 average natural gas sales prices to $1.23 per MCF which decreased revenues $76 million. Additionally, due to the sale of the intrastate pipeline systems in February 1995, intrastate natural gas sales declined $23 million. Costs and expenses were $213 million for the first quarter of 1995 compared to $206 million in 1994. The increase was primarily due to a 14 percent improvement in 1995 production levels which increased production and processing related expenses $23 million and a $5 million increase in administrative expenses. These increases were partially offset by a $20 million decrease in intrastate natural gas purchases primarily due to the sale of the intrastate pipeline systems in February 1995. Interest expense was $26 million for the first quarter of 1995 compared to $18 million in 1994. The increase was primarily due to additional debt issued in May 1994 and higher outstanding commercial paper balances during the first quarter of 1995. The effective income tax rate was a benefit of 80 percent for the first quarter of 1995 compared to an expense of 2 percent for the first quarter of 1994. The 1995 beneficial tax rate is due to a 1995 pre-tax loss plus the effect of non- conventional fuel tax credits. The 1994 tax expense reflects the tax on lower 1994 pre-tax income relative to non-conventional fuel tax credits. Other Matters In March 1995, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards ("SFAS") No. 121, Accounting for the Impairment of Long-lived Assets and for Long-lived Assets to be Disposed Of, which is effective for fiscal years beginning after December 15, 1995. - 7 - Other Matters - Continued SFAS No. 121 requires that long-lived assets to be held and used by an entity be reviewed for impairment whenever events or changes indicate that the carrying amount of the asset may not be recoverable. An impairment loss would be recognized if the sum of expected future cash flows (undiscounted and without interest charges) from the use of the asset is less than the carrying amount of the asset. SFAS No. 121 also requires that long-lived assets to be disposed of be reported at the lower of carrying amount or fair value less the cost to sell. The Company is currently evaluating the impact, if any, SFAS No. 121 will have on its financial position or results of operations. - 8 - PART II - OTHER INFORMATION ITEM 4. Submission of Matters to a Vote of Security Holders The Annual Meeting of Stockholders was held on March 16, 1995. The following were nominated and elected to serve as Directors of Burlington Resources Inc. for a term of one year or until their successors shall have been duly elected and qualified: Nominee For Withheld J. V. Byrne 109,429,013 601,639 S. P. Gilbert 109,399,984 630,668 J. F. McDonald 109,464,979 565,673 T. H. O'Leary 109,357,765 672,887 D. M. Roberts 109,458,958 571,694 W. Scott, Jr. 109,424,871 605,781 W. E. Wall 109,414,795 615,857 ITEM 6. Exhibits and Reports on Form 8-K A. Exhibits The following exhibits are filed as part of this report. Exhibit Nature of Exhibit Page 4.1 The Company and its subsidiaries * either have filed with the Securities and Exchange Commission or upon request will furnish a copy of any instrument with respect to long-term debt of the Company. 11.1 Earnings per share computation. 11 12.1 Ratio of Earnings to Fixed Charges. 12 27.1 Financial Data Schedule. ** * Exhibit incorporated by reference. ** Exhibit required only for filings made electronically using the Securities and Exchange Commission's EDGAR System. - 9 - ITEM 6. Exhibits and Reports on Form 8-K, Continued B. Reports on Form 8-K The Company filed a Form 8-K dated March 21, 1995, which included as an exhibit the form of underwriting agreement in connection with its offering of $150 million of 8.20% Debentures due 2025. Items 1, 2, 3, and 5 of Part II are not applicable and have been omitted. Pursuant to the requirements of Section 13 (or 15(d)) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BURLINGTON RESOURCES INC. (Registrant) By /s/ John E. Hagale John E. Hagale Senior Vice President and Chief Financial Officer By /s/ Hays R. Warden Hays R. Warden Vice President & Controller Date: May 12, 1995 - 10 - EX-11 2 EARNINGS PER SHARE COMPUTATION BURLINGTON RESOURCES INC. EARNINGS PER SHARE COMPUTATION EXHIBIT 11.1 (UNAUDITED)
FIRST QUARTER 1995 1994 Earnings Shares Earnings Shares (In Thousands, Except per Share Amounts) Primary earnings per common share: Net earnings available for common stock and weighted average number of common shares outstanding.................................$ (4,824) 126,513 $ 47,720 129,707 Stock options assumed exercised - net................ - 462 - 812 -------- ------- -------- ------- Total net earnings and primary common shares.........$ (4,824) 126,975 $ 47,720 130,519 ======== ======= ======== ======= Primary earnings per common share....................$ (0.04) $ 0.37 ======== ======== Fully diluted earnings per common share: Net earnings available for common stock and weighted average number of common shares outstanding.................................$ (4,824) 126,513 $ 47,720 129,707 Stock options assumed exercised - net................ - 462 - 812 -------- ------- -------- ------- Total net earnings and fully diluted common shares...$ (4,824) 126,975 $ 47,720 130,519 ======== ======= ======== ======= Fully diluted earnings per common share...............$ (0.04) $ 0.37 ======== =========
- 10 - EX-12 3 RATIO OF EARNINGS TO FIXED CHARGES BURLINGTON RESOURCES INC. RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 (UNAUDITED)
Three Months Ended March 31, 1995 1994 (In Thousands, Except Ratio Amounts) Earnings: Income (Loss) Before Income Taxes....................$ (24,121) $ 48,843 Add: Interest and fixed charges.......................... 26,365 18,056 Portion of rent under long-term operating leases representative of an interest factor....... 1,127 1,123 ---------- ----------- Total Earnings Available for Fixed Charges..........$ 3,371 $ 68,022 ========== =========== Fixed Charges: Interest and fixed charges..........................$ 26,365 $ 18,056 Portion of rent under long-term operating leases representative of an interest factor....... 1,127 1,123 Capitalized interest................................ 480 345 ---------- ---------- Total Fixed Charges.................................$ 27,972 $ 19,524 ========== =========== Ratio of Earnings to Fixed Charges.................... 0.12 x 3.48 x ========== ===========
- 11 - EX-27 4 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BURLINGTON RESOURCES INC. CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 1995, AND THE RELATED CONSOLIDATED STATEMENT OF INCOME FOR THE THREE MONTH PERIOD ENDED MARCH 31, 1995, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1000 3-MOS DEC-31-1995 JAN-01-1995 MAR-31-1995 44503 0 161133 0 19135 248246 5801434 1957024 4748336 205704 1351575 1500 0 0 2545425 4748336 214569 214569 0 212858 0 0 26365 (24121) (19297) (4824) 0 0 0 (4824) (.04) (.04)
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