EX-99.4 14 h92808ex99-4.txt UNAUDITED CONSOLIDATED FIN. STMTS OF CANADIAN HUN. EXHIBIT 99.4 [CANADIAN HUNTER LOGO] Interim Report Q3 2001 For the period ended September 30, 2001 -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS
$ MILLIONS SEPTEMBER 30, 2001 December 31, 2000 ------------------ ----------------- (UNAUDITED) ASSETS Current Cash and marketable securities 6.1 -- Accounts receivable 93.3 212.7 Inventories 16.6 18.9 Other current assets 3.4 3.4 ------------ ------------ 119.4 235.0 Other assets 31.3 33.1 Property, plant and equipment 1,541.6 1,252.5 ------------ ------------ 1,692.3 1,520.6 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable and accrued liabilities 131.7 180.2 Income taxes payable 154.4 19.9 Current portion of deferred revenue and other liabilities 6.3 4.2 ------------ ------------ 292.4 204.3 Deferred revenue and other liabilities 55.0 52.3 Long-term debt -- 234.9 Future income tax liability 437.2 397.1 Minority interest -- 14.0 ------------ ------------ 784.6 902.6 ------------ ------------ SHAREHOLDERS' EQUITY Share capital 347.9 347.6 Retained earnings 559.8 270.4 ------------ ------------ 907.7 618.0 ------------ ------------ 1,692.3 1,520.6 ============ ============
CONSOLIDATED STATEMENTS OF NET INCOME FOR THE PERIOD ENDED SEPTEMBER 30 (UNAUDITED)
Three months Nine months ---------------------- ---------------------- $ MILLIONS, EXCEPT PER SHARE AMOUNTS 2001 2000 2001 2000 -------- -------- -------- -------- REVENUE Petroleum and natural gas sales 190.6 227.6 993.1 532.4 Royalties (39.3) (52.4) (234.4) (116.1) -------- -------- -------- -------- 151.3 175.2 758.7 416.3 -------- -------- -------- -------- EXPENSES Production 18.6 13.8 57.4 39.3 General and administrative 7.4 5.3 19.8 15.6 Interest and other financing charges [NOTE 4] 0.1 53.1 3.3 60.4 Depletion, depreciation and amortization 65.1 48.9 195.9 132.3 Other (1.9) (0.2) (1.6) (1.4) Minority interest -- 0.2 0.2 0.5 -------- -------- -------- -------- 89.3 121.1 275.0 246.7 -------- -------- -------- -------- INCOME BEFORE INCOME TAXES 62.0 54.1 483.7 169.6 Income taxes Current -- 0.8 135.3 2.1 Future 15.7 19.8 54.1 73.0 -------- -------- -------- -------- NET INCOME 46.3 33.5 294.3 94.5 ======== ======== ======== ======== NET INCOME PER SHARE Basic 0.77 0.56 4.94 1.59 Diluted [NOTE 2] 0.76 0.55 4.82 1.55
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS FOR THE PERIOD ENDED SEPTEMBER 30 (UNAUDITED)
Three months Nine months -------------------- -------------------- $ MILLIONS 2001 2000 2001 2000 ------- ------- ------- ------- RETAINED EARNINGS, BEGINNING OF PERIOD 514.1 127.0 270.4 68.5 Net income 46.3 33.5 294.3 94.5 Cash issued under incentive share option plan (0.6) (1.3) (4.9) (3.8) ------- ------- ------- ------- RETAINED EARNINGS, END OF PERIOD 559.8 159.2 559.8 159.2 ======= ======= ======= =======
CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE PERIOD ENDED SEPTEMBER 30 (UNAUDITED)
Three months Nine months ---------------------- ---------------------- $ MILLIONS, EXCEPT PER SHARE AMOUNTS 2001 2000 2001 2000 -------- -------- -------- -------- OPERATING ACTIVITIES Net income 46.3 33.5 294.3 94.5 Add (deduct) items not involving cash Depletion, depreciation and amortization 64.6 48.7 195.4 132.0 Deferred revenue (1.3) 47.1 (4.5) 48.5 Future income taxes 15.7 19.8 54.1 73.0 Minority interest -- 0.2 0.2 0.5 -------- -------- -------- -------- Funds from operations 125.3 149.3 539.5 348.5 Net change in non-cash working capital 5.7 (3.4) 213.9 (55.5) -------- -------- -------- -------- CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES 131.0 145.9 753.4 293.0 -------- -------- -------- -------- INVESTING ACTIVITIES Exploration and development of oil and natural gas properties (126.4) (64.1) (445.7) (241.0) Acquisition of equipment and other assets (1.4) (0.4) (3.1) (2.2) Acquisition of oil and natural gas properties (6.0) (14.5) (6.3) (20.8) Disposition of oil and natural gas properties -- 28.0 0.9 28.4 Corporate acquisitions, net [NOTE 3] (43.4) -- (43.4) (54.5) Net change in non-cash working capital balances 0.1 (0.2) (13.2) (4.3) -------- -------- -------- -------- CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (177.1) (51.2) (510.8) (294.4) -------- -------- -------- -------- FINANCING ACTIVITIES Cash issued under incentive share option plan (0.1) (1.2) (8.0) (3.8) Share capital issued -- -- 0.2 0.1 Repayment of long-term debt -- -- (234.9) -- Drawings on long-term debt -- 8.9 -- 109.7 Increase (decrease) in deferred revenue and other liabilities (1.6) (102.4) 6.2 (104.6) -------- -------- -------- -------- CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (1.7) (94.7) (236.5) 1.4 -------- -------- -------- -------- Net change in cash and marketable securities (47.8) -- 6.1 -- Cash and marketable securities, beginning of period 53.9 -- -- -- -------- -------- -------- -------- Cash and marketable securities, end of period 6.1 -- 6.1 -- ======== ======== ======== ======== FUNDS FROM OPERATIONS PER SHARE Basic 2.09 2.51 9.05 5.85 Diluted [NOTE 2] 2.06 2.44 8.83 5.71
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 ACCOUNTING POLICIES The accounting policies used in the preparation of these interim consolidated financial statements conform with those used in Canadian Hunter's annual consolidated financial statements except as indicated in note 2. These interim consolidated financial statements do not include all of the disclosures included in Canadian Hunter's annual consolidated financial statements. Accordingly, these interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2000. NOTE 2 CHANGE IN ACCOUNTING POLICY Effective January 1, 2001, Canadian Hunter retroactively adopted the Canadian Institute of Chartered Accountants new standard requiring the use of the "treasury stock method" rather than the "imputed interest method" to determine the dilutive effect of stock options and other dilutive instruments. Had the imputed interest method been used for the nine months ended September 30, 2001, diluted net income per share would have been $4.73 (2000 - $1.54) and diluted funds from operations per share would have been $8.64 (2000 - $5.61). Had the imputed interest method been used for the quarter ended September 30, 2001, diluted net income per share would have been $0.75 (2000 - $0.55) and diluted funds from operations per share would have been $2.01 (2000 - $2.40). NOTE 3 CORPORATE ACQUISITIONS In August 2001, Canadian Hunter purchased the remaining 22 percent of the shares of Atalaya Energy S.A. ("Atalaya"). In March, 2000 Canadian Hunter purchased 78% of the outstanding shares of Atalaya for $54.5 million. Atalaya is engaged in the exploration for and production of natural gas and liquids in Argentina. In September 2001, Canadian Hunter acquired all of the outstanding common shares of a private Canadian company. These transactions were accounted for using the purchase method. Canadian Hunter allocated the 2001 corporate purchase prices to the assets and liabilities as follows:
($ millions) CANADA INTERNATIONAL CORPORATE TOTAL Property, plant and equipment 1.3 27.1 28.4 Net non-cash working capital 0.8 0.8 1.6 Future income tax asset (liability) 18.8 (7.0) 11.8 Other 1.6 -- 1.6 -------- -------- -------- TOTAL 22.5 20.9 43.4 -------- -------- --------
NOTE 4 INTEREST AND OTHER FINANCING CHARGES In 2000, interest and other financing charges included $48.6 million related to a loss on termination of a prepaid natural gas contract. NOTE 5 SUBSEQUENT EVENT - OFFER TO PURCHASE ALL OF THE COMMON SHARES OF CANADIAN HUNTER Effective December 5, 2001, Burlington Acquisition Corporation, an indirect wholly-owned subsidiary of Burlington Resources Inc., acquired all of the issued and outstanding common shares of the Corporation. SEGMENTED INFORMATION FOR THE THREE MONTHS ENDED SEPTEMBER 30 (UNAUDITED)
CANADA ARGENTINA CORPORATE TOTAL 2001 2000 2001 2000 2001 2000 --------- --------- --------- --------- --------- --------- FINANCIAL ($MILLIONS) Petroleum and natural gas sales 182.6 225.1 8.0 2.5 190.6 227.6 Funds from operations 120.0 147.7 5.3 1.6 125.3 149.3 Net income 45.3 33.1 1.0 0.4 46.3 33.5 Capital expenditures Exploration and development 124.9 62.6 1.5 1.5 126.4 64.1 Acquisition of oil and natural gas properties 6.0 14.5 -- -- 6.0 14.5 Disposition of oil and natural gas properties -- (28.0) -- -- -- (28.0) Corporate acquisitions, net 22.5 -- 20.9 -- 43.4 -- --------- --------- --------- --------- --------- --------- OPERATING Production Natural gas (mmcf/d) 479 425 35 9 514 434 Natural gas liquids (bbls/d) 8,587 7,871 168 52 8,755 7,923 Crude oil (bbls/d) 831 1,266 -- -- 831 1,266 Total (boe/d) 89,250 79,883 5,987 1,559 95,237 81,442 --------- --------- --------- --------- --------- --------- Prices Natural gas ($/mcf) 3.56 4.97 2.29 2.20 3.47 4.89 Natural gas liquids ($/bbl) 28.57 37.51 29.58 37.87 28.59 37.51 Crude oil ($/bbl) 38.78 33.76 -- -- 38.78 33.76 Total ($/boe) 22.22 30.62 14.17 14.06 21.70 30.22 --------- --------- --------- --------- --------- --------- Netback ($/boe) Product revenue 22.22 30.62 14.17 14.06 21.70 30.22 Royalties (4.67) (7.10) (1.62) (1.49) (4.47) (6.95) Operating expense (2.06) (1.82) (3.01) (2.21) (2.12) (1.83) --------- --------- --------- --------- --------- --------- Operating netback 15.49 21.70 9.54 10.36 15.11 21.44 General and administrative expense (0.87) (0.69) (0.46) (1.38) (0.85) (0.70) Interest expense (0.02) (0.61) 0.06 -- (0.02) (0.56) Current taxes (0.01) (0.11) -- -- (0.01) (0.11) --------- --------- --------- --------- --------- --------- Cash netback 14.59 20.29 9.14 8.98 14.23 20.07 ========= ========= ========= ========= ========= =========
SEGMENTED INFORMATION FOR THE NINE MONTHS ENDED SEPTEMBER 30 (UNAUDITED)
CANADA ARGENTINA CORPORATE TOTAL 2001 2000 2001 2000 2001 2000 --------- --------- --------- --------- --------- --------- FINANCIAL ($MILLIONS) Petroleum and natural gas sales 972.4 526.6 20.7 5.8 993.1 532.4 Funds from operations 527.3 345.4 12.2 3.1 539.5 348.5 Net income 292.5 93.9 1.8 0.6 294.3 94.5 Capital expenditures Exploration and development 434.9 238.5 10.8 2.5 445.7 241.0 Acquisition of oil and natural gas properties 6.3 20.7 -- 0.1 6.3 20.8 Disposition of oil and natural gas properties (0.9) (28.4) -- -- (0.9) (28.4) Corporate acquisitions, net 22.5 -- 20.9 54.5 43.4 54.5 --------- --------- --------- --------- --------- --------- OPERATING Production Natural gas (mmcf/d) 489 403 29 7 518 410 Natural gas liquids (bbls/d) 9,260 7,502 149 41 9,409 7,543 Crude oil (bbls/d) 859 1,478 -- -- 859 1,478 Total (boe/d) 91,684 76,137 4,920 1,211 96,604 77,348 --------- --------- --------- --------- --------- --------- Prices Natural gas ($/mcf) 6.51 4.00 2.30 2.16 6.26 3.96 Natural gas liquids ($/bbl) 36.64 34.06 35.16 36.27 36.62 34.07 Crude oil ($/bbl) 41.80 36.49 -- -- 41.80 36.49 Total ($/boe) 38.85 25.24 14.45 13.73 37.53 25.01 --------- --------- --------- --------- --------- --------- Netback ($/boe) Product revenue 38.85 25.24 14.45 13.73 37.53 25.01 Royalties (9.27) (5.53) (1.58) (1.51) (8.86) (5.45) Operating expense (2.11) (1.84) (3.21) (2.10) (2.17) (1.84) --------- --------- --------- --------- --------- --------- Operating netback 27.47 17.87 9.66 10.12 26.50 17.72 General and administrative expense (0.73) (0.70) (1.09) (2.29) (0.75) (0.73) Interest expense (0.13) (0.56) -- (0.28) (0.13) (0.55) Current taxes (5.41) (0.10) -- -- (5.11) (0.10) --------- --------- --------- --------- --------- --------- Cash netback 21.20 16.51 8.57 7.55 20.51 16.34 ========= ========= ========= ========= ========= =========
CAPITAL EXPENDITURES FOR THE PERIOD ENDED SEPTEMBER 30 (UNAUDITED)
Three months Nine months --------------------- ---------------------- $ MILLIONS 2001 2000 2001 2000 -------- -------- -------- -------- Lease acquisition and rentals 32.2 24.5 91.9 48.2 Seismic 4.7 1.2 19.3 9.0 Drilling and completions 60.3 24.6 199.8 115.9 Facilities 26.9 11.0 128.0 59.1 Capitalized general and administrative 2.3 2.8 6.7 8.8 -------- -------- -------- -------- Exploration and development expenditures 126.4 64.1 445.7 241.0 Acquisition of oil and natural gas properties 6.0 14.5 6.3 20.8 Disposition of oil and natural gas properties -- (28.0) (0.9) (28.4) Corporate acquisitions, net 43.4 -- 43.4 54.5 Other 1.4 0.4 3.1 2.2 -------- -------- -------- -------- Total capital expenditures 177.2 51.0 497.6 290.1 ======== ======== ======== ========
DRILLING HISTORY FOR THE PERIOD ENDED SEPTEMBER 30, 2001 (UNAUDITED)
Three months Nine months Gross Net Gross Net -------- -------- -------- -------- EXPLORATORY Natural gas 30 24.3 122 98.7 Crude oil -- -- -- -- Dry 9 9.0 23 21.4 -------- -------- -------- -------- Total exploratory 39 33.3 145 120.1 -------- -------- -------- -------- DEVELOPMENT Natural gas 28 21.8 127 93.2 Crude oil -- -- -- -- Dry 5 4.9 12 10.5 -------- -------- -------- -------- Total development 33 26.7 139 103.7 -------- -------- -------- -------- Total wells drilled 72 60.0 284 223.8 -------- -------- -------- -------- SUCCESS RATIO (%) Exploratory 77 73 84 82 Development 85 82 91 90 -------- -------- -------- -------- Overall 81 77 88 86 ======== ======== ======== ========