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EXHIBIT 99
[Devon Energy Corporation Letterhead]
NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: ZACK HAGER
INVESTOR RELATIONS
(405) 552-4526
DEVON ENERGY REPORTS RECORD EARNINGS;
$200 MILLION BEFORE MERGER COSTS
OKLAHOMA CITY, OKLAHOMA, OCTOBER 26, 2000--Devon Energy Corporation (AMEX: DVN,
TSE: NSX) today reported the highest quarterly revenues, net earnings and
earnings per share in the company's history. Record third quarter oil and gas
production and higher product prices led to these achievements. For the quarter
ended September 30, 2000, net earnings were $164.9 million or $1.27 per common
share ($1.22 per diluted common share). Excluding the $57.2 million of one-time
costs attributable to the merger with Santa Fe Snyder Corporation, third quarter
earnings were $200.2 million or $1.55 per common share ($1.49 per diluted common
share). This compares to third quarter 1999 net earnings of $50.9 million or 50
cents per common share (48 cents per diluted common share).
Net earnings for the first nine months of 2000 were $423.4 million or $3.27 per
common share ($3.20 per diluted common share), also record highs. Excluding the
$57.2 million of merger costs, earnings for the same period were $458.7 million
or $3.55 per common share ($3.47 per diluted common share). This compares to a
net loss of $229.1 million or $2.75 per basic and diluted common share in the
first nine months of 1999. The 1999 loss was attributable to a $301.7 million
after-tax full cost ceiling test adjustment incurred by Santa Fe Snyder prior to
the merger with Devon.
BASIS OF PRESENTATION
As a result of accounting for the August 2000 merger of Devon and Santa
Fe Snyder as a "pooling-of-interests," financial statements for all periods
presented represent the combined financial results of the two companies. The
pooling-of-interests method of accounting requires the financial statements of
all periods presented to be restated as if the companies had always been merged.
PRODUCTION AND PRICE GAINS DRIVE RECORD REVENUES
Sales of Devon's oil, gas and natural gas liquids (NGLs) were up 85
percent in the third quarter of 2000 to $685.2 million. This compares with third
quarter 1999 sales of oil, gas and NGLs of $371.1 million. Significant gains in
both production and prices contributed to the increase in these revenues.
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Total production of oil, gas and NGLs was up 21 percent over the third quarter
of 1999 to 29.5 million barrels of oil equivalent (Boe). The increase in
production resulted from acquisitions and drilling activity.
Oil, natural gas and NGLs prices were all dramatically higher in the third
quarter of 2000 than in the same quarter a year ago. Devon's third quarter
average oil price increased 33 percent from $19.59 per barrel in 1999 to $26.13
per barrel in 2000. The average price for Devon's natural gas production
increased 69 percent from $2.14 per thousand cubic feet in 1999 to $3.62 per
thousand cubic feet in 2000. The average price received for the company's NGLs
increased 59 percent from $13.22 per barrel in 1999 to $21.00 per barrel in
2000.
HIGHER EXPENSES REFLECT EXPANDING OPERATIONS
Increased production and revenues were accompanied by increased
expenses. Total pre-tax expenses were $443.8 million in the third quarter of
2000, compared to $294.5 million in 1999. The 2000 amount includes $57.2 million
of one-time merger costs related to the Santa Fe Snyder transaction. Despite
higher pre-tax expenses, pre-tax earnings were up 230 percent in the third
quarter to $271.1 million. Excluding merger costs, pre-tax earnings were $328.3
million -- a 300 percent increase over the third quarter of last year.
Lease operating expenses increased 38 percent in the most recent quarter to
$114.0 million. Production taxes were up 100 percent to $26.3 million in the
third quarter of 2000. Production taxes increase as oil and gas revenues rise.
Depreciation, depletion and amortization of property and equipment increased
$34.2 million to $170.2 million in the third quarter of 2000. General and
administrative expenses (G&A) decreased by $0.7 million to $25.3 million in the
most recent quarter. Total third quarter financing costs increased by $4.0
million to $40.4 million in 2000.
INCOME TAXES
Income tax expense for the most recent quarter was $106.2 million or 39
percent of pre-tax earnings. Third quarter 1999 income tax expense was $31.2
million or 38 percent of pre-tax earnings. Approximately $55.8 million of third
quarter 2000 income tax expense was deferred, not requiring the use of cash.
Devon Energy Corporation is an independent energy company engaged in oil and gas
property acquisition, exploration and production. Devon ranks among the top five
U.S.-based independent oil and gas producers and is included in the S&P 500
Index. Approximately 76 percent of the company's proved reserves are located in
North America. Also, Devon has significant international operations in
Azerbaijan, Southeast Asia, South America and West Africa. Shares of Devon
Energy Corporation trade on the American Stock Exchange under the symbol DVN.
Devon's exchangeable shares (resulting from Northstar, Devon's wholly-owned
Canadian operating unit) trade on the Toronto Stock Exchange under the symbol
NSX.
FINANCIAL INFORMATION FOLLOWS
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<TABLE>
<CAPTION>
QUARTER ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
--------------------------------- ----------------------------------
POOLED(1) HISTORICAL(2) POOLED(1) HISTORICAL(2)
PRODUCTION DATA (NET OF ROYALTIES) 2000 1999 1999 2000 1999 1999
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
TOTAL PERIOD PRODUCTION
Gas (Bcf)
U.S.- Rocky Mountains 22.7 16.1 9.4 63.8 35.8 25.4
U.S.- Permian/Mid-Continent 29.2 21.0 14.0 87.2 50.8 30.3
U.S.- Gulf 37.5 28.3 13.8 111.2 49.3 14.8
Canada 14.5 18.8 18.8 47.3 56.9 56.9
Other International 2.2 2.5 -- 6.6 7.2 --
--------- --------- --------- --------- --------- ---------
Total Gas 106.1 86.7 56.0 316.1 200.0 127.4
========= ========= ========= ========= ========= =========
Oil (MBbls)
U.S.- Rocky Mountains 718 830 468 2,185 1,872 1,266
U.S.- Permian/Mid-Continent 3,180 2,879 1,478 10,858 7,253 3,193
U.S.- Gulf 2,740 1,214 866 8,768 1,896 883
Canada 1,234 1,360 1,360 3,598 3,901 3,901
Other International 2,275 2,224 153 6,832 6,462 153
--------- --------- --------- --------- --------- ---------
Total Oil 10,147 8,507 4,325 32,241 21,384 9,396
========= ========= ========= ========= ========= =========
Natural Gas Liquids (MBbls)
U.S.- Rocky Mountains 179 130 126 522 344 339
U.S.- Permian/Mid-Continent 987 900 656 3,115 1,863 1,108
U.S.- Gulf 353 207 183 1,232 220 183
Canada 162 177 177 504 503 503
Other International 7 4 -- 11 11 --
--------- --------- --------- --------- --------- ---------
Total Natural Gas Liquids 1,688 1,418 1,142 5,384 2,941 2,133
========= ========= ========= ========= ========= =========
AVERAGE DAILY PRODUCTION
Gas (Mcf)
U.S.- Rocky Mountains 246,902 174,772 102,391 232,978 131,198 92,905
U.S.- Permian/Mid-Continent 317,533 228,554 152,326 318,073 185,927 110,989
U.S.- Gulf 407,348 307,859 150,000 406,004 180,623 54,227
Canada 157,359 204,098 204,098 172,493 208,370 208,370
Other International 24,272 27,207 -- 24,051 26,385 --
--------- --------- --------- --------- --------- ---------
Total Gas 1,153,414 942,490 608,815 1,153,599 732,503 466,491
========= ========= ========= ========= ========= =========
Oil (Bbls)
U.S.- Rocky Mountains 7,804 9,022 5,087 7,974 6,857 4,637
U.S.- Permian/Mid-Continent 34,565 31,293 16,065 39,628 26,568 11,696
U.S.- Gulf 29,783 13,196 9,413 32,000 6,945 3,234
Canada 13,413 14,783 14,783 13,131 14,289 14,289
Other International 24,728 24,174 1,663 24,934 23,670 560
--------- --------- --------- --------- --------- ---------
Total Oil 110,293 92,468 47,011 117,667 78,329 34,416
========= ========= ========= ========= ========= =========
Natural Gas Liquids (Bbls)
U.S.- Rocky Mountains 1,946 1,413 1,370 1,905 1,260 1,242
U.S.- Permian/Mid-Continent 10,728 9,783 7,130 11,369 6,824 4,059
U.S.- Gulf 3,837 2,250 1,989 4,496 806 670
Canada 1,761 1,924 1,924 1,839 1,842 1,842
Other International 76 43 -- 40 40 --
--------- --------- --------- --------- --------- ---------
Total Natural Gas Liquids 18,348 15,413 12,413 19,649 10,772 7,813
========= ========= ========= ========= ========= =========
</TABLE>
(1) Devon and Santa Fe Snyder Corporation combined in accordance with the
pooling-of-interests method of accounting. Under the pooling-of-interests
method, financial statements for all periods presented are restated as if the
companies had always been merged.
(2) Devon's historical results as reported prior to the August 2000 merger with
Santa Fe Snyder.
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<TABLE>
<CAPTION>
QUARTER ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
------------------------------------ ------------------------------------
POOLED(1) HISTORICAL(2) POOLED(1) HISTORICAL(2)
PRICE DATA 2000 1999 1999 2000 1999 1999
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
AVERAGE REALIZED PRICES (US$)
Gas ($/Mcf)
U.S.- Rocky Mountains $ 3.15 $ 1.98 $ 1.87 $ 2.69 $ 1.88 $ 1.82
U.S.- Permian/Mid-Continent $ 3.90 $ 2.48 $ 2.62 $ 3.23 $ 2.05 $ 2.21
U.S.- Gulf $ 4.26 $ 2.52 $ 2.54 $ 3.37 $ 2.27 $ 2.49
Canada $ 2.52 $ 1.45 $ 1.45 $ 2.13 $ 1.40 $ 1.40
Other International $ 1.41 $ 1.28 $ -- $ 1.33 $ 1.25 $ --
All Gas $ 3.62 $ 2.14 $ 2.08 $ 2.96 $ 1.86 $ 1.80
Oil ($/Bbl)
U.S.- Rocky Mountains $ 32.52 $ 19.59 $ 19.85 $ 27.50 $ 16.55 $ 16.00
U.S.- Permian/Mid-Continent $ 22.48 $ 20.21 $ 19.78 $ 23.66 $ 15.84 $ 16.43
U.S.- Gulf $ 28.12 $ 20.97 $ 21.87 $ 26.24 $ 18.00 $ 21.69
Canada $ 25.00 $ 17.11 $ 17.11 $ 23.93 $ 13.76 $ 13.76
Other International $ 27.45 $ 19.56 $ 6.61 $ 25.25 $ 15.55 $ 6.61
All Oil $ 26.13 $ 19.59 $ 18.90 $ 24.99 $ 15.63 $ 15.60
Natural Gas Liquids ($/Bbl)
U.S.- Rocky Mountains $ 22.93 $ 13.85 $ 14.02 $ 19.22 $ 10.94 $ 10.99
U.S.- Permian/Mid-Continent $ 20.56 $ 12.35 $ 13.21 $ 8.44 $ 10.16 $ 11.62
U.S.- Gulf $ 18.66 $ 13.78 $ 14.12 $ 20.93 $ 13.54 $ 14.15
Canada $ 26.88 $ 16.23 $ 16.23 $ 25.57 $ 12.79 $ 12.79
Other International $ 16.57 $ 24.50 $ -- $ 19.64 $ 18.18 $ --
All Natural Gas Liquids $ 21.00 $ 13.22 $ 13.91 $ 19.75 $ 10.99 $ 12.01
AVERAGE BENCHMARK PRICES (US$)
Gas ($/Mcf) - Texas Gulf Coast Index $ 4.14 $ 2.50 $ 2.50 $ 3.30 $ 2.08 $ 2.08
Gas ($/Mcf) - NYMEX $ 4.27 $ 2.60 $ 2.60 $ 3.41 $ 2.17 $ 2.17
Oil ($/Bbl) - West Texas Intermediate $ 28.76 $ 18.95 $ 18.95 $ 26.88 $ 14.81 $ 14.81
</TABLE>
(1) Devon and Santa Fe Snyder Corporation combined in accordance with the
pooling-of-interests method of accounting. Under the pooling of interests
method, financial statements for all periods presented are restated as if the
companies had always been merged.
(2) Devon's historical results as reported prior to the August 2000 merger with
Santa Fe Snyder.
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<TABLE>
<CAPTION>
QUARTER ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
---------------------------------------- -----------------------------------------
STATEMENT OF OPERATIONS DATA (US$) POOLED (1) HISTORICAL(2) POOLED(1) HISTORICAL(2)
(IN THOUSANDS, EXCEPT PER SHARE AND % 2000 1999 1999 2000 1999 1999
CHANGE DATA) ----------- ----------- ------------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
TOTAL REVENUES (NET OF ROYALTIES) $ 714,846 $ 376,551 $ 219,851 $ 1,903,200 $ 749,329 $ 411,429
Oil sales 265,183 166,678 81,778 805,776 334,162 146,562
Gas sales 384,542 185,719 116,619 936,628 371,957 229,557
Natural gas liquids sales 35,455 18,744 15,844 106,358 32,308 25,608
Other 29,666 5,410 5,610 54,438 10,902 9,702
TOTAL PRE-TAX EXPENSES $ 443,784 $ 294,470 $ 181,270 $ 1,198,089 $ 1,076,393 $ 334,593
Lease operating expenses 114,035 82,846 45,846 337,922 198,666 100,366
Production taxes 26,252 13,151 7,051 66,242 25,366 13,466
----------- ----------- ------------- ----------- ----------- -----------
Total production and operating expenses 140,287 95,997 52,897 404,164 224,032 113,832
Depreciation, depletion and amortization
of property & equipment 170,151 135,977 85,477 507,654 255,798 154,798
Amortization of goodwill 10,364 -- -- 31,057 -- --
General and administrative expenses 25,304 26,038 19,338 74,177 52,813 32,513
Merger costs 57,233 -- -- 57,233 16,800
Interest expense 40,445 34,359 21,459 121,396 64,938 35,238
Deferred effects of change in currency
rates on subsidiary's long-term debt -- (330) (330) 2,408 (9,076) (9,076)
Distributions on preferred securities -- 2,429 2,429 -- 7,288 7,288
Reduction in carrying value of oil and
gas properties -- -- -- -- 463,800 --
EARNINGS (LOSS) BEFORE INCOME TAXES
AND EXTRAORDINARY ITEM 271,062 82,081 38,581 705,111 (327,064) 76,836
TOTAL INCOME TAX EXPENSE (BENEFIT) 106,150 31,229 14,129 281,678 (102,205) 30,195
Current 50,403 1,073 4,573 122,908 5,475 8,875
Deferred 55,747 30,156 9,556 158,770 (107,680) 21,320
Earnings (Loss) Before Extraordinary Item 164,912 50,852 24,452 423,433 (224,859) 46,641
Extraordinary Item -- -- -- -- (4,200) --
NET EARNINGS $ 164,912 $ 50,852 $ 24,452 $ 423,433 $ (229,059) $ 46,641
=========== =========== ============= =========== =========== ===========
NET EARNINGS APPLICABLE TO COMMON
STOCKHOLDERS $ 162,479 $ 49,635 $ 23,235 $ 416,132 $ (230,276) $ 45,424
EARNINGS PER COMMON SHARE
Basic $ 1.27 $ 0.50 $ 0.39 $ 3.27 $ (2.75) $ 0.87
=========== =========== ============= =========== =========== ===========
Diluted $ 1.22 $ 0.48 $ 0.38 $ 3.20 $ (2.75) $ 0.86
=========== =========== ============= =========== =========== ===========
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 127,857 99,178 59,842 127,065 83,592 52,372
Diluted 134,394 105,596 65,534 130,628 89,427 57,827
</TABLE>
(1) Devon and Santa Fe Snyder Corporation combined in accordance with the
pooling-of-interests method of accounting. Under the pooling-of-interests
method, financial statements for all periods presented are restated as if the
companies had always been merged.
(2) Devon's historical results as reported prior to the August 2000 merger with
Santa Fe Snyder.
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<TABLE>
<CAPTION>
POOLED(1)
-----------------------------------------
BALANCE SHEET DATA (US$) SEPTEMBER 30, DECEMBER 31,
(IN THOUSANDS, EXCEPT % CHANGE DATA) 2000 1999 % CHANGE
------------ ----------- -----------
<S> <C> <C> <C>
TOTAL ASSETS $ 6,570,516 $ 6,096,360 8%
Cash and cash equivalents 178,647 173,167 3%
Other current assets 605,839 417,127 45%
----------- -----------
Total current assets 784,486 590,294 33%
Property and equipment (net) 4,755,529 4,423,420 8%
Investment in Chevron Corporation common stock 604,630 614,382 -2%
Goodwill, net of amortization 299,661 322,800 -7%
Other assets 126,210 145,464 -13%
TOTAL LIABILITIES $ 3,654,335 $ 3,622,540 1%
Current liabilities 611,388 467,344 31%
Other liabilities 180,411 262,310 -31%
Debentures exchangeable into shares of
Chevron Corporation common stock 760,313 760,313 --%
Senior Convertible Debentures 356,270 -- NM
Other long-term debt 1,085,554 1,656,208 -34%
Deferred revenue 129,744 104,800 24%
Deferred income taxes 530,655 371,565 43%
STOCKHOLDERS' EQUITY $ 2,916,181 $ 2,473,820 18%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 6,570,516 $ 6,096,360 8%
COMMON SHARES OUTSTANDING 128,261 126,323 2%
</TABLE>
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
--------------------------------------------
STATEMENT OF CASH FLOWS DATA (US$) POOLED (1)
--------------------------------------------
(IN THOUSANDS, EXCEPT % CHANGE DATA) 2000 1999 % CHANGE
------------ ----------- --------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings (loss) $ 423,433 $ (229,059) NM
Depreciation, depletion and amortization of property
and equipment 507,654 255,798 98%
Amortization of goodwill 31,057 -- NM
Reduction in carrying value of oil and gas properties -- 463,800 NM
Deferred income taxes (benefit) 157,629 (107,680) NM
Other (2,834) (7,295) -61%
Changes in assets and liabilities net of
effects in acquisitions of businesses 16,451 39,627 -58%
----------- -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 1,133,390 $ 415,191 173%
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (947,974) (430,431) 120%
Payment made for acquisition of producing properties,
net of cash required -- (278,388) NM
Other 56,640 65,161 -13%
----------- -----------
NET CASH USED IN INVESTING ACTIVITIES $ (891,334) $ (643,658) 38%
CASH FLOWS FROM FINANCING ACTIVITIES
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ (235,464) $ 608,009 NM
</TABLE>
(1) Devon and Santa Fe Snyder Corporation combined in accordance with the
pooling-of-interests method of accounting. Under the pooling-of-interests
method, financial statements for all periods presented are restated as if the
companies had always been merged.
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