þ
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
Delaware
|
91-1413284
|
|||
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|||
incorporation
or organization)
|
Identification
Number)
|
|||
717
Texas Ave., Suite 2100, Houston, Texas
|
77002
|
|||
(Address
of principal executive offices)
|
(Zip
Code)
|
Registrant's
telephone number, including area code
|
(713)
624-9000
|
Yes
|
þ
|
No
|
o
|
Yes
|
þ
|
No
|
o
|
Yes
|
o
|
No
|
þ
|
Class
|
Outstanding
|
|||
Common
Stock, par value $.01 per share,
|
||||
as
of September 30, 2005
|
378,037,355
|
PART
I — FINANCIAL INFORMATION
|
||||||||
PART
II — OTHER INFORMATION
|
||||||||
PART
I - FINANCIAL INFORMATION
|
ITEM
1.
|
Financial
Statements
|
BURLINGTON
RESOURCES INC.
|
|||||||||||||
CONSOLIDATED
STATEMENT OF INCOME
|
|||||||||||||
(UNAUDITED)
|
|||||||||||||
Third
Quarter
|
Nine
Months
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
Millions, Except per Share Amounts)
|
|||||||||||||
Revenues
|
$
|
1,953
|
$
|
1,419
|
$
|
5,215
|
$
|
4,060
|
|||||
Costs
and Other Income - Net
|
|||||||||||||
Taxes
Other than Income Taxes
|
94
|
67
|
250
|
188
|
|||||||||
Transportation
Expense
|
127
|
112
|
364
|
329
|
|||||||||
Operating
Costs
|
176
|
152
|
490
|
426
|
|||||||||
Depreciation,
Depletion and Amortization
|
325
|
284
|
975
|
831
|
|||||||||
Exploration
Costs
|
65
|
55
|
183
|
177
|
|||||||||
Administrative
|
76
|
54
|
176
|
153
|
|||||||||
Interest
Expense
|
70
|
71
|
210
|
211
|
|||||||||
(Gain)/Loss
on Disposal of Assets
|
(117
|
)
|
-
|
(117
|
)
|
10
|
|||||||
Other
Expense (Income) - Net
|
18
|
(5
|
)
|
21
|
19
|
||||||||
Total
Costs and Other Income - Net
|
834
|
790
|
2,552
|
2,344
|
|||||||||
Income
Before Income Taxes
|
1,119
|
629
|
2,663
|
1,716
|
|||||||||
Income
Tax Expense
|
371
|
235
|
907
|
589
|
|||||||||
Net
Income
|
$
|
748
|
$
|
394
|
$
|
1,756
|
$
|
1,127
|
|||||
Basic
Earnings per Common Share
|
$
|
1.98
|
$
|
1.00
|
$
|
4.60
|
$
|
2.87
|
|||||
Diluted
Earnings per Common Share
|
$
|
1.96
|
$
|
1.00
|
$
|
4.56
|
$
|
2.84
|
|||||
See
accompanying Notes to Consolidated Financial
Statements.
|
BURLINGTON RESOURCES INC.
|
|||||||
CONSOLIDATED
BALANCE SHEET
|
|||||||
(UNAUDITED)
|
|||||||
September
30,
|
December
31,
|
||||||
2005
|
2004
|
||||||
(In
Millions, Except Share Data)
|
|||||||
ASSETS
|
|||||||
Current
Assets
|
|||||||
Cash
and Cash Equivalents
|
$
|
2,816
|
$
|
2,179
|
|||
Accounts
Receivable
|
1,292
|
994
|
|||||
Inventories
|
159
|
124
|
|||||
Other
Current Assets
|
309
|
158
|
|||||
4,576
|
3,455
|
||||||
Oil
& Gas Properties (Successful Efforts Method)
|
19,939
|
17,943
|
|||||
Other
Properties
|
1,616
|
1,544
|
|||||
21,555
|
19,487
|
||||||
Accumulated
Depreciation, Depletion and Amortization
|
9,605
|
8,454
|
|||||
Properties
- Net
|
11,950
|
11,033
|
|||||
Goodwill
|
1,093
|
1,054
|
|||||
Other
Assets
|
239
|
202
|
|||||
Total
Assets
|
$
|
17,858
|
$
|
15,744
|
|||
LIABILITIES
|
|||||||
Current
Liabilities
|
|||||||
Accounts
Payable
|
$
|
1,274
|
$
|
1,182
|
|||
Taxes
Payable
|
303
|
216
|
|||||
Accrued
Interest
|
56
|
61
|
|||||
Dividends
Payable
|
38
|
33
|
|||||
Deferred
Income Taxes
|
-
|
48
|
|||||
Commodity
Hedging Contracts and Other Derivatives
|
433
|
27
|
|||||
Other
Current Liabilities
|
12
|
32
|
|||||
2,116
|
1,599
|
||||||
Long-term
Debt
|
3,893
|
3,887
|
|||||
Deferred
Income Taxes
|
2,861
|
2,396
|
|||||
Other
Liabilities and Deferred Credits
|
957
|
851
|
|||||
Commitments
and Contingencies (Note 5)
|
|||||||
STOCKHOLDERS'
EQUITY
|
|||||||
Preferred
Stock, Par Value $01 Per Share
|
|||||||
(Authorized
75,000,000 Shares; No Shares Issued)
|
-
|
-
|
|||||
Common
Stock, Par Value $01 Per Share
|
|||||||
(Authorized
650,000,000 Shares; Issued 482,376,870 Shares)
|
5
|
5
|
|||||
Paid-in
Capital
|
3,996
|
3,973
|
|||||
Retained
Earnings
|
5,816
|
4,163
|
|||||
Deferred
Compensation - Restricted Stock
|
(19
|
)
|
(14
|
)
|
|||
Accumulated
Other Comprehensive Income
|
1,057
|
1,092
|
|||||
Cost
of Treasury Stock
|
|||||||
(104,339,515
and 94,435,401 Shares for 2005 and 2004, respectively)
|
(2,824
|
)
|
(2,208
|
)
|
|||
Stockholders'
Equity
|
8,031
|
7,011
|
|||||
Total
Liabilities and Stockholders' Equity
|
$
|
17,858
|
$
|
15,744
|
|||
See
accompanying Notes to Consolidated Financial
Statements.
|
BURLINGTON
RESOURCES INC.
|
|||||||
CONSOLIDATED
STATEMENT OF CASH FLOWS
|
|||||||
(UNAUDITED)
|
|||||||
Nine
Months
|
|||||||
2005
|
2004
|
||||||
(In
Millions)
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|||||||
Net
Income
|
$
|
1,756
|
$
|
1,127
|
|||
Adjustments
to Reconcile Net Income to Net Cash
|
|||||||
Provided
By Operating Activities
|
|||||||
Depreciation,
Depletion and Amortization
|
975
|
831
|
|||||
Deferred
Income Taxes
|
342
|
353
|
|||||
Exploration
Costs
|
183
|
177
|
|||||
(Gain)/Loss
on Disposal of Assets
|
(117
|
)
|
10
|
||||
Changes
in Derivative Fair Values
|
(4
|
)
|
(2
|
)
|
|||
Working
Capital Changes
|
|||||||
Accounts
Receivable
|
(282
|
)
|
(258
|
)
|
|||
Inventories
|
(30
|
)
|
(30
|
)
|
|||
Other
Current Assets
|
(27
|
)
|
(25
|
)
|
|||
Accounts
Payable
|
69
|
168
|
|||||
Taxes
Payable
|
106
|
127
|
|||||
Accrued
Interest
|
(5
|
)
|
2
|
||||
Other
Current Liabilities
|
(19
|
)
|
7
|
||||
Changes
in Other Assets and Liabilities
|
16
|
(13
|
)
|
||||
Net
Cash Provided By Operating Activities
|
2,963
|
2,474
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
|||||||
Additions
to Properties
|
(1,833
|
)
|
(1,200
|
)
|
|||
Proceeds
from Sales and Other
|
149
|
(25
|
)
|
||||
Net
Cash Used In Investing Activities
|
(1,684
|
)
|
(1,225
|
)
|
|||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
|||||||
Proceeds
from Long-term Debt
|
-
|
41
|
|||||
Reduction
in Long-term Debt
|
(1
|
)
|
(2
|
)
|
|||
Dividends
Paid
|
(98
|
)
|
(89
|
)
|
|||
Common
Stock Purchases
|
(691
|
)
|
(342
|
)
|
|||
Common
Stock Issuances
|
58
|
139
|
|||||
Net
Cash Used In Financing Activities
|
(732
|
)
|
(253
|
)
|
|||
Effect
of Exchange Rate Changes on Cash and Cash Equivalents
|
90
|
37
|
|||||
Increase
in Cash and Cash Equivalents
|
637
|
1,033
|
|||||
Cash
and Cash Equivalents
|
|||||||
Beginning
of Year
|
2,179
|
757
|
|||||
End
of Period
|
$
|
2,816
|
$
|
1,790
|
|||
See
accompanying Notes to Consolidated Financial
Statements.
|
1.
|
BASIS
OF PRESENTATION
|
2.
|
STOCK-BASED
COMPENSATION
|
Third
Quarter
|
Nine
Months
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
Millions, except per Share Amounts)
|
|||||||||||||
Net
income as reported
|
$
|
748
|
$
|
394
|
$
|
1,756
|
$
|
1,127
|
|||||
Less:
Pro forma stock-based employee compensation cost, after
tax
|
(1
|
)
|
(3
|
)
|
(4
|
)
|
(9
|
)
|
|||||
Net
income - pro forma
|
$
|
747
|
$
|
391
|
$
|
1,752
|
$
|
1,118
|
|||||
Basic
EPS - as reported
|
$
|
1.98
|
$
|
1.00
|
$
|
4.60
|
$
|
2.87
|
|||||
Basic
EPS - pro forma
|
1.98
|
1.00
|
4.59
|
2.84
|
|||||||||
Diluted
EPS - as reported
|
1.96
|
1.00
|
4.56
|
2.84
|
|||||||||
Diluted
EPS - pro forma
|
$
|
1.96
|
$
|
0.99
|
$
|
4.55
|
$
|
2.82
|
3.
|
COMPREHENSIVE
INCOME
|
Nine
Months
|
|||||||||||||
2005
|
2004
|
||||||||||||
(In
Millions)
|
|||||||||||||
Accumulated
other comprehensive income - beginning of period
|
$ 1,092
|
$ 655
|
|||||||||||
Net
income
|
$
|
1,756
|
$
|
1,127
|
|||||||||
Other
comprehensive income (loss) - net of tax
|
|||||||||||||
Hedging
activities
|
|||||||||||||
Current
period changes in fair value of settled contracts
|
(44
|
)
|
(1
|
)
|
|||||||||
Reclassification
adjustments for settled contracts
|
25
|
14
|
|||||||||||
Changes
in fair value of outstanding hedging positions
|
(274
|
)
|
(44
|
)
|
|||||||||
Hedging
activities
|
(293
|
)
|
(31
|
)
|
|||||||||
Foreign
currency translation
|
|||||||||||||
Foreign
currency translation adjustments
|
258
|
134
|
|||||||||||
Total
other comprehensive income (loss)
|
(35
|
)
|
(35
|
)
|
103
|
103
|
|||||||
Comprehensive
income
|
$
|
1,721
|
$
|
1,230
|
|||||||||
Accumulated
other comprehensive income - end of period
|
$
|
1,057
|
$
|
758
|
4.
|
DERIVATIVE
INSTRUMENTS AND HEDGING ACTIVITIES
|
Notional
Amount
|
Average
|
Fair
Value Asset
|
|||||||||
Settlement
Period
|
Derivative
Instrument
|
Hedge
Strategy
|
Gas
(MMBTU)
|
Oil
(Barrels)
|
Underlying
Prices
|
(Liability)
(In
Millions)
|
|||||
2005
|
Swap
|
Cash
flow
|
2,524,647
|
$
6.89
|
$
(9)
|
||||||
Swap
|
Not
designated
|
1,550,000
|
(0.11)
|
5
|
|||||||
Purchased put | Cash Flow | 41,643,802 | 6.10 | - | |||||||
Written
call
|
Cash
flow
|
41,643,802
|
7.86
|
(182)
|
|||||||
Purchased put | Cash flow | 1,840,000 | 44.16 | - | |||||||
Written
call
|
Cash
flow
|
1,840,000
|
56.63
|
(20)
|
|||||||
Swap
|
Fair
value
|
303,800
|
7.15
|
1
|
|||||||
N/A
|
Fair
value (obligation)
|
303,800
|
6.96
|
(1)
|
|||||||
2006
|
Swap
|
Cash
flow
|
5,844,500
|
7.76
|
(21)
|
||||||
Swap
|
Fair
value
|
295,000
|
11.47
|
-
|
|||||||
N/A
|
Fair
value (obligation)
|
295,000
|
11.09
|
(1)
|
|||||||
Purchased
put
|
Cash
flow
|
60,796,657
|
7.72
|
20
|
|||||||
Written
call
|
Cash
flow
|
60,796,657
|
9.83
|
(202)
|
|||||||
Purchased
put
|
Cash
flow
|
3,795,000
|
51.81
|
7
|
|||||||
Written
call
|
Cash
flow
|
3,795,000
|
66.41
|
(30)
|
|||||||
2007
|
Swap
|
Cash
flow
|
1,013,000
|
$
3.83
|
(5)
|
||||||
$(438) |
Settlement
Period
|
Derivative
Instrument
|
Hedge
Strategy
|
Notional
Amount
(In
Millions)
|
Average
Underlying
Rate
|
Average
Floating
Rate
|
Fair
Value
Liability
(In
Millions)
|
|||||||||
2005
|
Interest
rate swap
|
Fair
value
|
$
50
|
5.6%
|
LIBOR+3.36%
|
$
-
|
|||||||||
2006
|
Interest
rate swap
|
Fair
value
|
$
50
|
5.6%
|
LIBOR+3.36%
|
(1)
|
|||||||||
$
(1)
|
5.
|
COMMITMENTS
AND CONTINGENCIES
|
6.
|
LONG-TERM
DEBT
|
7.
|
SEGMENT
AND GEOGRAPHIC INFORMATION
|
Third
Quarter
|
|||||||||||||||||||||||||
2005
|
2004
|
||||||||||||||||||||||||
U.S.
|
Canada
|
Intl
|
Total
|
U.S.
|
Canada
|
Intl
|
Total
|
||||||||||||||||||
(In
Millions)
|
|||||||||||||||||||||||||
Revenues
|
$
|
1,028
|
$
|
688
|
$
|
237
|
$
|
1,953
|
$
|
687
|
$
|
510
|
$
|
222
|
$
|
1,419
|
|||||||||
Depreciation,
depletion and amortization
|
108
|
166
|
45
|
319
|
92
|
134
|
52
|
278
|
|||||||||||||||||
Income
before income taxes
|
801
|
366
|
122
|
1,289
|
407
|
233
|
114
|
754
|
|||||||||||||||||
Capital
expenditures
|
$
|
472
|
$
|
207
|
$
|
51
|
$
|
730
|
$
|
169
|
$
|
135
|
$
|
55
|
$
|
359
|
Nine
Months
|
|||||||||||||||||||||||||
2005
|
2004
|
||||||||||||||||||||||||
U.S.
|
Canada
|
Intl
|
Total
|
U.S.
|
Canada
|
Intl
|
Total
|
||||||||||||||||||
(In
Millions)
|
|||||||||||||||||||||||||
Revenues
|
$
|
2,644
|
$
|
1,846
|
$
|
725
|
$
|
5,215
|
$
|
1,941
|
$
|
1,523
|
$
|
596
|
$
|
4,060
|
|||||||||
Depreciation,
depletion and amortization
|
324
|
486
|
146
|
956
|
257
|
392
|
163
|
812
|
|||||||||||||||||
Income
before income taxes
|
1,790
|
917
|
386
|
3,093
|
1,139
|
710
|
268
|
2,117
|
|||||||||||||||||
Capital
expenditures
|
$
|
884
|
$
|
808
|
$
|
119
|
$
|
1,811
|
$
|
505
|
$
|
593
|
$
|
132
|
$
|
1,230
|
September
30, 2005
|
December
31, 2004
|
||||||||||||||||||||||||
U.S.
|
Canada
|
Intl
|
Total
|
U.S.
|
Canada
|
Intl
|
Total
|
||||||||||||||||||
(In
Millions)
|
|||||||||||||||||||||||||
Properties-net
|
$
|
4,520
|
$
|
5,982
|
$
|
1,371
|
$
|
11,873
|
$
|
3,984
|
$
|
5,541
|
$
|
1,417
|
$
|
10,942
|
|||||||||
Goodwill
|
$
|
-
|
$
|
1,093
|
$
|
-
|
$
|
1,093
|
$
|
-
|
$
|
1,054
|
$
|
-
|
$
|
1,054
|
Third
Quarter
|
Nine
Months
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
Millions)
|
|||||||||||||
Income
before income taxes for reportable segments
|
$
|
1,289
|
$
|
754
|
$
|
3,093
|
$
|
2,117
|
|||||
Corporate
expenses
|
82
|
59
|
199
|
171
|
|||||||||
Interest
expense
|
70
|
71
|
210
|
211
|
|||||||||
Other
expense (income) - net
|
18
|
(5
|
)
|
21
|
19
|
||||||||
Consolidated
income before income taxes
|
$
|
1,119
|
$
|
629
|
$
|
2,663
|
$
|
1,716
|
Third
Quarter
|
Nine
Months
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
Millions)
|
|||||||||||||
Total
capital expenditures for reportable segments
|
$
|
730
|
$
|
359
|
$
|
1,811
|
$
|
1,230
|
|||||
Corporate
capital expenditures
|
1
|
2
|
5
|
14
|
|||||||||
Total
capital expenditures
|
$
|
731
|
$
|
361
|
$
|
1,816
|
$
|
1,244
|
September
30,
|
December
31,
|
||||||
2005
|
2004
|
||||||
(In
Millions)
|
|||||||
Properties
-
net
for reportable segments
|
$
|
11,873
|
$
|
10,942
|
|||
Corporate
properties -
net
|
77
|
91
|
|||||
Consolidated
properties -
net
|
$
|
11,950
|
$
|
11,033
|
8.
|
ASSET
RETIREMENT OBLIGATIONS
|
(In
Millions)
|
||||
Carrying
amount of asset retirement obligations as of December 31,
2004
|
$
|
468
|
||
Liabilities
settled during the period
|
(11
|
)
|
||
Current
period accretion expense
|
22
|
|||
Changes
in foreign exchange rates during the period
|
11
|
|||
Carrying
amount of asset retirement obligations as of September 30,
2005
|
$
|
490
|
9.
|
OIL
AND GAS PROPERTIES
|
(In
Millions)
|
||||
Balance
at January 1, 2005
|
$
|
23
|
||
Additions
|
48
|
|||
Reclassifications
to proved properties
|
(25
|
)
|
||
Charged
to expense
|
(5
|
)
|
||
Balance
at September 30, 2005
|
$
|
41
|
||
Capitalized
less than one year since completion of drilling
|
$
|
41
|
11.
|
GOODWILL
|
(In
Millions)
|
||||
Balance-December
31, 2004
|
$
|
1,054
|
||
Changes
in foreign exchange rates during the period
|
39
|
|||
Balance-September
30, 2005
|
$
|
1,093
|
12.
|
INCOME
TAXES
|
13.
|
RETIREMENT
BENEFITS
|
Third
Quarter
|
|||||||||||||
Pension
Benefits
|
Postretirement
Benefits
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
Millions)
|
|||||||||||||
Benefit
cost for the plans includes the following components
|
|||||||||||||
Service
cost
|
$
|
3
|
$
|
2
|
$
|
-
|
$
|
-
|
|||||
Interest
cost
|
4
|
3
|
1
|
-
|
|||||||||
Expected
return on plan asset
|
(4
|
)
|
(3
|
)
|
-
|
-
|
|||||||
Recognized
net actuarial loss
|
2
|
2
|
-
|
-
|
|||||||||
Net
benefit cost
|
$
|
5
|
$
|
4
|
$
|
1
|
$
|
-
|
Nine
Months
|
|||||||||||||
Pension
Benefits
|
Postretirement
Benefits
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
Millions)
|
|||||||||||||
Benefit
cost for the plans includes the following components
|
|||||||||||||
Service
cost
|
$
|
9
|
$
|
8
|
$
|
-
|
$
|
-
|
|||||
Interest
cost
|
10
|
9
|
2
|
2
|
|||||||||
Expected
return on plan asset
|
(10
|
)
|
(9
|
)
|
-
|
-
|
|||||||
Recognized
net actuarial loss
|
4
|
4
|
-
|
-
|
|||||||||
Net
benefit cost
|
$
|
13
|
$
|
12
|
$
|
2
|
$
|
2
|
14.
|
RECENT
ACCOUNTING PRONOUNCEMENTS
|
2005
|
2004
|
||||||
(Per
Mcfe)
|
|||||||
Transportation
expense
|
$
|
0.46
to $0.50
|
$
|
0.44
|
|||
Operating
costs
|
0.62
to 0.66
|
0.57
|
|||||
Depreciation,
depletion and amortization (“DD&A”)
|
1.20
to 1.30
|
1.10
|
|||||
Administrative
|
$
|
0.19
to $0.22
|
$
|
0.21
|
(In
Millions)
|
|||||||
Exploration
costs
|
$
|
265
to $ 285
|
$
|
258
|
|||
Interest
expense
|
$
|
270
to $ 290
|
$
|
282
|
Nine
Months
|
Increase
|
%
Increase
|
|||||||||||
2005
|
2004
|
(Decrease)
|
(Decrease)
|
||||||||||
($
In Millions)
|
|||||||||||||
Oil
and gas
|
|||||||||||||
Development
|
$
|
1,242
|
$
|
883
|
$
|
359
|
41
|
%
|
|||||
Exploration
|
297
|
194
|
103
|
53
|
|||||||||
Acquisitions
|
237
|
85
|
152
|
179
|
|||||||||
Total
oil and gas
|
1,776
|
1,162
|
614
|
53
|
|||||||||
Plants
and pipelines
|
25
|
58
|
(33
|
)
|
(57
|
)
|
|||||||
Administrative
and other
|
15
|
24
|
(9
|
)
|
(38
|
)
|
|||||||
Total
capital expenditures
|
$
|
1,816
|
$
|
1,244
|
$
|
572
|
46
|
%
|
Third
Quarter
|
%
|
||||||||||||
2005
|
2004
|
Increase
|
Increase
|
||||||||||
($
In Millions)
|
|||||||||||||
Revenues
|
|||||||||||||
Natural
gas
|
$
|
1,249
|
$
|
927
|
$
|
322
|
35
|
%
|
|||||
NGLs
|
211
|
161
|
50
|
31
|
|||||||||
Crude
oil
|
478
|
322
|
156
|
48
|
|||||||||
Processing
and other
|
15
|
9
|
6
|
67
|
|||||||||
Total
revenues
|
$
|
1,953
|
$
|
1,419
|
$
|
534
|
38
|
%
|
Third
Quarter
|
%
|
Increase
|
||||||||||||||
2005
|
2004
|
Increase
|
Increase
|
(In
Millions)
|
||||||||||||
Price
variance
|
||||||||||||||||
Natural
gas sales prices (per MCF)
|
$
|
7.19
|
$
|
5.29
|
$
|
1.90
|
36
|
%
|
$
|
330
|
||||||
NGLs
sales prices (per Bbl)
|
34.69
|
26.26
|
8.43
|
32
|
51
|
|||||||||||
Crude
oil sales prices (per Bbl)
|
$
|
55.86
|
$
|
41.06
|
$
|
14.80
|
36
|
%
|
126
|
|||||||
Total
price variance
|
$
|
507
|
%
|
Increase
|
|||||||||||||||
Third
Quarter
|
Increase
|
Increase
|
(Decrease)
|
|||||||||||||
2005
|
2004
|
(Decrease)
|
(Decrease)
|
(In
Millions)
|
||||||||||||
Volume
variance
|
||||||||||||||||
Natural
gas sales volumes (MMCF per day)
|
1,888
|
1,906
|
(18
|
)
|
(1
|
)%
|
$
|
(8
|
)
|
|||||||
NGLs
sales volumes (MBbls per day)
|
66.1
|
66.5
|
(0.4
|
)
|
(1
|
)
|
(1
|
)
|
||||||||
Crude
oil sales volumes (MBbls per day)
|
93.0
|
85.1
|
7.9
|
9
|
%
|
30
|
||||||||||
Total
volume variance
|
$
|
21
|
%
|
|||||||||||||
Third
Quarter
|
Increase
|
Increase
|
|||||||||||
2005
|
2004
|
(Decrease)
|
(Decrease)
|
||||||||||
($
In Millions)
|
|||||||||||||
Costs
and other income -
net
|
|||||||||||||
Taxes
other than income taxes
|
$
|
94
|
$
|
67
|
$
|
27
|
40
|
%
|
|||||
Transportation
expense
|
127
|
112
|
15
|
13
|
|||||||||
Operating
costs
|
176
|
152
|
24
|
16
|
|||||||||
Depreciation,
depletion and amortization
|
325
|
284
|
41
|
14
|
|||||||||
Exploration
costs
|
65
|
55
|
10
|
18
|
|||||||||
Administrative
|
76
|
54
|
22
|
41
|
|||||||||
Interest
expense
|
70
|
71
|
(1
|
)
|
(1
|
)
|
|||||||
Gain
on disposal of assets
|
(117
|
)
|
-
|
117
|
-
|
||||||||
Other
expense (income) -
net
|
18
|
(5
|
)
|
23
|
460
|
||||||||
Total
costs and other income -
net
|
$
|
834
|
$
|
790
|
$
|
44
|
6
|
%
|
Nine
Months
|
%
|
||||||||||||
2005
|
2004
|
Increase
|
Increase
|
||||||||||
($
In Millions)
|
|||||||||||||
Revenues
|
|||||||||||||
Natural
gas
|
$
|
3,346
|
$
|
2,803
|
$
|
543
|
19
|
%
|
|||||
NGLs
|
565
|
423
|
142
|
34
|
|||||||||
Crude
oil
|
1,267
|
809
|
458
|
57
|
|||||||||
Processing
and other
|
37
|
25
|
12
|
48
|
|||||||||
Total
revenues
|
$
|
5,215
|
$
|
4,060
|
$
|
1,155
|
28
|
%
|
Nine
Months
|
%
|
Increase
|
||||||||||||||
2005
|
2004
|
Increase
|
Increase
|
(In
Millions)
|
||||||||||||
Price
variance
|
||||||||||||||||
Natural
gas sales prices (per MCF)
|
$
|
6.46
|
$
|
5.33
|
$
|
1.13
|
21
|
%
|
$
|
584
|
||||||
NGLs
sales prices (per Bbl)
|
30.90
|
24.06
|
6.84
|
28
|
125
|
|||||||||||
Crude
oil sales prices (per Bbl)
|
$
|
50.08
|
$
|
35.17
|
$
|
14.91
|
42
|
%
|
377
|
|||||||
Total
price variance
|
$
|
1,086
|
Nine
Months
|
Increase
|
%
Increase
|
Increase
(Decrease)
|
|||||||||||||
2005
|
2004
|
(Decrease)
|
(Decrease)
|
(In
Millions)
|
||||||||||||
Volume
variance
|
||||||||||||||||
Natural
gas sales volumes (MMCF per day)
|
1,898
|
1,919
|
(21
|
)
|
(1
|
)%
|
$
|
(41
|
)
|
|||||||
NGLs
sales volumes (MBbls per day)
|
67.0
|
64.2
|
2.8
|
4
|
17
|
|||||||||||
Crude
oil sales volumes (MBbls per day)
|
92.7
|
83.9
|
8.8
|
10
|
%
|
81
|
||||||||||
Total
volume variance
|
$
|
57
|
Nine
Months
|
Increase
|
%
Increase
|
|||||||||||
2005
|
2004
|
(Decrease)
|
(Decrease)
|
||||||||||
($
In Millions)
|
|||||||||||||
Costs
and other income -
net
|
|||||||||||||
Taxes
other than income taxes
|
$
|
250
|
$
|
188
|
$
|
62
|
33
|
%
|
|||||
Transportation
expense
|
364
|
329
|
35
|
11
|
|||||||||
Operating
costs
|
490
|
426
|
64
|
15
|
|||||||||
Depreciation,
depletion and amortization
|
975
|
831
|
144
|
17
|
|||||||||
Exploration
costs
|
183
|
177
|
6
|
3
|
|||||||||
Administrative
|
176
|
153
|
23
|
15
|
|||||||||
Interest
expense
|
210
|
211
|
(1
|
)
|
-
|
||||||||
(Gain)/loss
on disposal of assets
|
(117
|
)
|
10
|
127
|
1,270
|
||||||||
Other
expense -
net
|
21
|
19
|
2
|
11
|
|||||||||
Total
costs and other income -
net
|
$
|
2,552
|
$
|
2,344
|
$
|
208
|
9
|
%
|
Period
|
(a)
Total
Number of Shares Purchased
|
(b)
Average
Price Paid per Share
|
(c)
Total
Number of Shares Purchased as Part of Publicly Announced Plans
or
Programs
|
(d)
Approximate
Dollar Value of Shares that May Yet Be Purchased Under the Plans
or
Programs
|
|||||||||
(In
Thousands, Except per Share Amounts)
|
|||||||||||||
July
1, 2005 -
July
31, 2005
|
1,400
|
$
|
60.16
|
1,400
|
$
|
423,890
|
|||||||
August
1, 2005 -
August
31, 2005
|
1,351
|
66.77
|
1,351
|
333,688
|
|||||||||
September
1, 2005 -
September
30, 2005
|
972
|
76.94
|
972
|
$
|
258,898
|
||||||||
Total
|
3,723
|
$
|
66.94
|
3,723
|
|||||||||
(1) |
In
December 2000, the Company announced that its Board of Directors
(“Board”)
authorized the repurchase of up to $1 billion of the Company’s Common
Stock. Through April 30, 2003, the Company had repurchased $816
million of
its Common Stock under the program authorized in December 2000.
In April
2003, the Company announced that its Board voted to restore the
authorization level to $1 billion effective May 1, 2003. Through
December
7, 2004, the Company had repurchased $712 million of its Common
Stock
under the program authorized in April 2003. In December 2004, the
Company
announced that the Board voted to restore the authorization level
to $1
billion. Through September 30, 2005, the Company had the authority
to
purchase $259 million of its Common Stock under the current authorization.
On October 26, 2005, the Company announced that its Board voted
to restore
the authorization level to $1
billion.
|
Exhibit
|
Nature
of Exhibit
|
|
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
|
|
10.1*
|
First
Amendment, effective August 17, 2005, to the $1.5 billion Credit
Agreement, dated July 29, 2004, between Burlington Resources Inc.,
Burlington Resources Canada Ltd., and Burlington Resources Canada
(Hunter)
Ltd., as Borrowers, and JPMorgan Chase Bank, as administrative
agent
(Exhibit 10.1 to Form 8-K filed August 22, 2005)
|
|
31.1
|
Rule
13a-14(a)/15d-14(a) Certification executed by Bobby S. Shackouls,
Chairman
of the Board, President and Chief Executive Officer of the
Company
|
|
31.2
|
Rule
13a-14(a)/15d-14(a) Certification executed by Joseph P. McCoy,
Senior Vice
President and Chief Financial Officer of the Company
|
|
32.1
|
Section
1350 Certification
|
|
32.2
|
Section
1350 Certification
|
*
|
Exhibit
incorporated by reference.
|
BURLINGTON
RESOURCES INC.
|
||
(Registrant)
|
||
By
|
/S/
JOSEPH P. McCOY
|
|
Joseph
P. McCoy
|
||
Senior
Vice President and
|
||
Chief
Financial Officer
|
||
By
|
/S/
DANE E. WHITEHEAD
|
|
Dane
E. Whitehead
|
||
Vice
President, Controller and
|
||
Chief
Accounting Officer
|
Exhibit
|
Nature
of Exhibit
|
|
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
|
|
10.1*
|
First
Amendment, effective August 17, 2005, to the $1.5 billion Credit
Agreement, dated July 29, 2004, between Burlington Resources Inc.,
Burlington Resources Canada Ltd., and Burlington Resources Canada
(Hunter)
Ltd., as Borrowers, and JPMorgan Chase Bank, as administrative
agent
(Exhibit 10.1 to Form 8-K filed August 22, 2005)
|
|
31.1
|
Rule
13a-14(a)/15d-14(a) Certification executed by Bobby S. Shackouls,
Chairman
of the Board, President and Chief Executive Officer of the
Company
|
|
31.2
|
Rule
13a-14(a)/15d-14(a) Certification executed by Joseph P. McCoy,
Senior Vice
President and Chief Financial Officer of the Company
|
|
32.1
|
Section
1350 Certification
|
|
32.2
|
Section
1350 Certification
|
*
|
Exhibit
incorporated by reference.
|