SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended JUNE 30, 1994
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ............to............
Commission file number 1-959
THE LOUISIANA LAND AND EXPLORATION COMPANY
Exact name of registrant as specified in its charter
MARYLAND 72-0244700
State or other jurisdiction of I.R.S. Employer
incorporation or organization Identification No.
909 POYDRAS STREET, NEW ORLEANS, LA. 70112
Address of principal executive offices Zip Code
Registrant's telephone number, including area code 504-566-6500
NO CHANGE
Former name, former address and former fiscal year, if
changed since last report
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.
Outstanding at
Class August 1, 1994
CAPITAL STOCK, $.15 PAR VALUE 33,249,341 SHARES
(Total pages herein - 16)
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THE LOUISIANA LAND AND EXPLORATION COMPANY
INDEX
Page
Number
_________________________________________________________________
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements:
(The June 30, 1994 and 1993 consolidated financial state-
ments included in this filing on Form 10-Q have been
reviewed by KPMG Peat Marwick, independent auditors, in
accordance with established professional standards and
procedures for such a review. The report of KPMG Peat
Marwick commenting upon their review is included herein.)
Consolidated Balance Sheets - June 30, 1994 and
December 31, 1993............................. 3
Consolidated Statements of Earnings - three months
and six months ended June 30, 1994 and 1993... 4
Consolidated Statements of Cash Flows - six months
ended June 30, 1994 and 1993.................. 5
Notes to Consolidated Financial Statements........ 6-8
Independent Auditors' Report...................... 9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations............................... 10-12
Petroleum Segment Information......................... 13
Operating Data........................................ 14-15
Part II. OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K............ 16
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<TABLE>
Part I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
THE LOUISIANA LAND AND EXPLORATION COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<CAPTION>
(Millions of dollars)
June 30, December 31,
ASSETS 1994 1993
_____________________________________________________________________________________
<S> <C> <C>
CURRENT ASSETS:
Cash, including cash equivalents (June 30,
1994-$18.2; December 31, 1993-$15.5) $ 28.0 33.3
Accounts and notes receivable, principally trade 118.2 109.7
Income taxes receivable 3.0 5.2
Inventories 25.6 26.8
Prepaid expenses 11.5 12.7
Deferred income taxes 2.6 2.6
_____________________________________________________________________________________
TOTAL CURRENT ASSETS 188.9 190.3
_____________________________________________________________________________________
Investments in affiliates 24.4 23.5
Property, plant and equipment 2,952.6 2,946.5
Less accumulated depletion, depreciation and amortization (1,396.1) (1,385.5)
_____________________________________________________________________________________
NET PROPERTY, PLANT AND EQUIPMENT 1,556.5 1,561.0
_____________________________________________________________________________________
Other assets 33.2 63.9
_____________________________________________________________________________________
$ 1,803.0 1,838.7
_____________________________________________________________________________________
LIABILITIES AND STOCKHOLDERS' EQUITY
_____________________________________________________________________________________
CURRENT LIABILITIES:
Accounts payable and accrued expenses 148.2 170.9
Income taxes payable 2.0 3.8
_____________________________________________________________________________________
TOTAL CURRENT LIABILITIES 150.2 174.7
_____________________________________________________________________________________
Deferred income taxes 154.4 151.2
Long-term debt 745.1 734.5
Other liabilities 160.0 178.5
_____________________________________________________________________________________
STOCKHOLDERS' EQUITY:
Capital stock 5.7 5.7
Additional paid-in capital 83.3 82.9
Retained earnings 674.6 684.4
_____________________________________________________________________________________
763.6 773.0
Loans to ESOP (7.0) (8.8)
Cost of capital stock in treasury (163.3) (164.4)
_____________________________________________________________________________________
TOTAL STOCKHOLDERS' EQUITY 593.3 599.8
_____________________________________________________________________________________
$ 1,803.0 1,838.7
_____________________________________________________________________________________
See accompanying notes to consolidated financial statements.
</TABLE>
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<TABLE>
THE LOUISIANA LAND AND EXPLORATION COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
(Millions, except per share data)
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1994 1993 1994 1993
_____________________________________________________________________________________
<S> <C> <C> <C> <C>
REVENUES:
Oil and gas $104.9 89.7 208.7 172.3
Refined products 81.6 99.6 178.3 200.8
Gain on sale of oil and gas properties 1.9 - 6.6 -
Other 2.3 5.4 3.8 8.5
_____________________________________________________________________________________
190.7 194.7 397.4 381.6
_____________________________________________________________________________________
COSTS AND EXPENSES:
Lease operating and facility expenses 25.9 23.4 57.7 50.4
Refinery cost of sales and operating
expenses 79.9 98.6 174.4 198.5
Dry holes and exploratory charges 16.7 13.0 26.0 21.4
Depletion, depreciation and amortization 43.3 27.3 92.6 52.8
Taxes, other than on earnings 6.1 6.1 12.8 12.7
General, administrative and other
expenses 10.7 10.9 20.8 20.6
Interest and debt expenses 5.9 5.4 12.0 10.2
Reversal of litigation accrual - - (10.0) -
_____________________________________________________________________________________
188.5 184.7 386.3 366.6
_____________________________________________________________________________________
Earnings before income taxes 2.2 10.0 11.1 15.0
Income tax expense 1.6 4.4 4.3 6.7
_____________________________________________________________________________________
Earnings before cumulative effect of
changes in accounting principles .6 5.6 6.8 8.3
Cumulative effect on years prior to
1993 of changes in accounting
principles - - - .2
_____________________________________________________________________________________
NET EARNINGS $ .6 5.6 6.8 8.5
_____________________________________________________________________________________
Earnings per share before cumulative
effect of changes in accounting
principles 0.02 0.20 0.20 0.29
Cumulative effect on years prior to
1993 of changes in accounting principles - - - 0.01
_____________________________________________________________________________________
EARNINGS PER SHARE $ 0.02 0.20 0.20 0.30
_____________________________________________________________________________________
AVERAGE SHARES 33.4 28.8 33.3 28.7
_____________________________________________________________________________________
CASH DIVIDENDS PER SHARE $ 0.25 0.25 0.50 0.50
_____________________________________________________________________________________
See accompanying notes to consolidated financial statements.
</TABLE>
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<TABLE>
THE LOUISIANA LAND AND EXPLORATION COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Millions of dollars)
<CAPTION>
Six months ended
June 30,
1994 1993
_____________________________________________________________________________________
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 6.8 8.5
Adjustments to reconcile to cash flows
from operations:
Gain on sale of oil and gas properties (6.6) -
Changes in accounting principles - (.2)
Depletion, depreciation and amortization 92.6 52.8
Deferred income taxes 3.2 .7
Dry holes and impairment charges 11.6 9.2
Other .1 2.0
_____________________________________________________________________________________
107.7 73.0
Changes in operating assets and liabilities:
Net (increase) decrease in receivables 5.9 (9.7)
Net decrease in inventories 1.2 1.2
Net (increase) decrease in prepaid items 1.2 (3.9)
Net decrease in payables (26.6) (8.0)
Other (1.4) 9.9
_____________________________________________________________________________________
NET CASH FLOWS FROM OPERATING ACTIVITIES 88.0 62.5
_____________________________________________________________________________________
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (103.9) (82.0)
Proceeds from asset sales 11.1 1.1
Other (25.8) (38.7)
_____________________________________________________________________________________
NET CASH FLOWS FROM INVESTING ACTIVITIES (118.6) (119.6)
_____________________________________________________________________________________
CASH FLOWS FROM FINANCING ACTIVITIES:
Additions to long-term debt 146.0 100.0
Repayments of long-term debt (135.4) (1.8)
Advances against cash surrender value 34.4 -
Dividends (16.6) (14.3)
Repayment of loans to ESOP 1.8 1.5
Purchase of treasury stock - (1.5)
Other (4.9) (3.0)
_____________________________________________________________________________________
NET CASH FLOWS FROM FINANCING ACTIVITIES 25.3 80.9
_____________________________________________________________________________________
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ (5.3) 23.8
_____________________________________________________________________________________
See accompanying notes to consolidated financial statements.
</TABLE>
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THE LOUISIANA LAND AND EXPLORATION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. In the opinion of the Company, the accompanying unaudited consolidated
financial statements contain all adjustments (consisting only of
normal recurring accruals) necessary to present fairly the financial
position as of June 30, 1994, and the results of operations and cash
flows for the three-month and six-month periods ended June 30, 1994
and 1993. Certain amounts have been reclassified to conform with the
current period's presentation.
2. On September 28, 1993, the Company completed the acquisition of all
of the issued and outstanding common stock of NERCO Oil & Gas, Inc.
("NERCO") for a cash purchase price of approximately $354 million.
The cost of the acquisition was allocated under the purchase method
of accounting based on the fair value of the assets acquired and
liabilities assumed.
The results of NERCO's operations were consolidated with the Company's
effective October 1, 1993. Pro forma combined results of operations
of the Company and NERCO, including appropriate purchase accounting
adjustments for the three-month and six-month periods ending June 30,
1993 as though the acquisition had taken place on January 1, 1993,
follows:
<TABLE>
<CAPTION>
(Millions, except per share data)
Three months Six months
ended ended
June 30, 1993 June 30, 1993
_________________________________________________________________________________
<S> <C> <C>
Revenues $227.7 449.7
_________________________________________________________________________________
Earnings before cumulative effect of changes in
accounting principle 5.3 6.9
Cumulative effect on years prior to 1993 of changes
in accounting principles - .2
_________________________________________________________________________________
Net earnings $ 5.3 7.1
_________________________________________________________________________________
Earnings per share $ 0.16 0.21
_________________________________________________________________________________
</TABLE>
3. The Company adopted SFAS No. 106 - "Employers' Accounting for
Postretirement Benefits Other Than Pensions", effective January 1,
1993. Upon adoption, the Company recorded a transition liability of
$20.5 million as a one-time non-cash charge against earnings ($13.5
million after income taxes; $0.47 per share) in the first quarter of
1993.
4. The Company adopted SFAS No. 109 - "Accounting for Income Taxes",
effective January 1, 1993. Upon adoption, the Company recorded a non-
cash credit to earnings of $13.7 million ($0.48 per share) in the
first quarter of 1993, which represented the recognition of deferred
tax assets existing at December 31, 1992.
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<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
5. For the three months ended June 30, 1994 and 1993, interest costs
incurred were $11.6 million and $9.8 million, respectively, of which
$5.7 million and $4.4 million, respectively, were capitalized as part
of the cost of property, plant and equipment. For the six months
ended June 30, 1994 and 1993, interest costs incurred were $23.5
million and $18.6 million, respectively, of which $11.5 million and
$8.4 million, respectively, were capitalized as part of the cost of
property, plant and equipment.
6. Earnings per share are calculated on the weighted average number of
shares outstanding during each period for capital stock and, when
dilutive, capital stock equivalents, which assumes exercise of stock
options.
7. In accordance with Regulation S-X, Rule 3-09, the audited consolidated
financial statements of the Company's 50%-owned affiliate, MaraLou
Netherlands Partnership (MaraLou) and its wholly-owned consolidated
subsidiary, CLAM Petroleum Company (CLAM), were filed with the
Company's Annual Report on Form 10-K for the year ended December 31,
1993.
Accordingly, the following unaudited summarized consolidated income
statement information for MaraLou and its consolidated subsidiary,
CLAM, for the three-month and six-month periods ended June 30, 1994
and 1993 are presented in accordance with Regulation S-X, Rule
10-01(b).
<TABLE>
<CAPTION>
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1994 1993 1994 1993
________________________________________________________________________________
<S> <C> <C> <C> <C>
Gross revenues $14.4 18.8 31.2 38.4
________________________________________________________________________________
Operating profit 8.1 9.6 19.7 21.7
________________________________________________________________________________
Earnings before cumulative effect of
change in accounting principle 3.8 5.6 7.7 8.7
Cumulative effect on years prior to
1993 of change in accounting principle
for income taxes - - - (6.0)
________________________________________________________________________________
Net earnings 3.8 5.6 7.7 2.7
________________________________________________________________________________
</TABLE>
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
8. As explained in Note 15 of "Notes to Consolidated Financial Statements"
in the Company's 1993 Annual Report to Shareholders, the State of
Louisiana had asserted claims against the Company in its capacity as
sublessor to Texaco of certain State leases, based upon Texaco's
alleged royalty miscalculations. In February 1994, a settlement was
agreed to by all parties under which the Company made a $5 million cash
payment and agreed to a reduction of an immaterial amount of future
payments to the Company by Texaco related to the Company's 8-1/3% net
profits interest (for which the Company has no cost basis) on a limited
number of the Company's Louisiana properties. The amounts previously
provided in the financial statements for this litigation exceeded the
cash payment required by $10 million, which was reversed during the
first quarter of 1994.
As also explained in Note 15, the Company has been notified by the U.S.
Environmental Protection Agency that it is one of many Potentially
Responsible Parties at three National Priorities List sites. Based
on its evaluation of the potential total cleanup costs, its estimate
of its potential exposure, and the viability of the other PRP's, the
Company believes that any costs ultimately required to be borne by it
at these sites will not have a material adverse effect on its results
of operations, cash flow or financial position.
The Company is subject to other legal proceedings, claims and
liabilities which arise in the ordinary course of its business. In the
opinion of Management, the amount of ultimate liability with respect
to these actions will not have a material adverse effect on results of
operations, cash flow or financial position of the Company.
<PAGE>
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INDEPENDENT AUDITORS' REPORT
The Board of Directors
The Louisiana Land and Exploration Company:
We have reviewed the consolidated balance sheet of The Louisiana Land and
Exploration Company and subsidiaries as of June 30, 1994, and the related
consolidated statements of earnings and cash flows for the three-month and
six-month periods ended June 30, 1994 and 1993. These financial
statements are the responsibility of the Company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical
procedures to financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole. Accordingly, we do
not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the consolidated financial statements referred to above
for them to be in conformity with generally accepted accounting
principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of The Louisiana Land and
Exploration Company and subsidiaries as of December 31, 1993, and the
related consolidated statements of earnings (loss), stockholders' equity,
and cash flows for the year then ended (not presented herein); and in our
report dated February 9, 1994, we expressed an unqualified opinion on
those consolidated financial statements. In our opinion, the information
set forth in the accompanying condensed consolidated balance sheet as of
December 31, 1993, is fairly presented, in all material respects, in
relation to the consolidated balance sheet from which it has been derived.
/KPMG PEAT MARWICK
KPMG PEAT MARWICK
New Orleans, Louisiana
August 9, 1994
<PAGE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
REVIEW OF OPERATIONS
Second quarter pretax earnings totaled $2.2 million in 1994, down from
the $10 million reported in the comparable 1993 quarter. While earnings
benefitted from higher oil and gas volumes, improved refining profit
margins and a nonrecurring $1.9 million pretax gain on the sale of oil and
gas properties, these increases were more than offset by lower product
prices, increased cash operating costs, higher depletion, depreciation and
amortization (DD&A) charges and a $1 million decrease in equity in the
earnings of the Company's 50%-owned affiliate, CLAM Petroleum Company
(included in Other Revenues). CLAM's earnings were adversely impacted by
an 11% decrease in natural gas prices and lower gas deliveries due to
reduced seasonal demand.
Pretax earnings of $11.1 million in the first half of 1994 benefitted
from: higher oil and gas volumes; improved refining profit margins;
nonrecurring items relating to a $10 million pretax gain on the reversal
of a previously established provision for the settlement of the Texaco
litigation and a $6.6 million pretax gain on the sale of oil and gas
properties; and a $2 million increase in the equity in earnings of CLAM.
CLAM's improvement in earnings was primarily attributable to the $6
million nonrecurring charge ($3 million net to the Company) in the prior
year for the cumulative effect of the change in accounting for income
taxes. The loss which would have been incurred in the 1994 first half in
the absence of the nonrecurring items was attributable primarily to low
crude oil prices, increased cash operating costs and higher DD&A charges.
Pretax earnings for the comparable 1993 period were $15 million.
The effective income tax rate for the the first half of 1994 exceeded
the Federal statutory rate of 35% primarily as a result of higher tax
rates in foreign jurisdictions. The higher effective rate in the second
quarter of 1994 reflects the revision of the estimated income tax
provision for the year.
OIL AND GAS OPERATIONS
Revenues from the Company's oil and gas operations were up $15 million
from the second quarter of 1993. Liquids revenues were up approximately
$3 million due to increased crude oil volumes ($10 million), which more
than offset the effect of lower worldwide crude oil prices ($7 million).
Natural gas revenues were up approximately $12 million as a result of
higher domestic deliveries ($18 million), which were partially offset by
lower prices ($6 million).
In the first half of 1994 revenues from the Company's oil and gas
operations were up $36 million from the comparable 1993 period. Natural
gas revenues were up almost $40 million as a result of higher domestic
deliveries ($38 million) and prices ($2 million). Even though crude oil
volumes increased ($19 million), liquids revenues were down approximately
$4 million due to lower worldwide crude oil prices ($23 million).
<PAGE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS. (CONTINUED)
Crude oil volumes in the second quarter and first half of 1994
increased 6100 and 5700 barrels per day, respectively, the 1993 periods
due to higher domestic and North Sea volumes. The increase in domestic
volumes was primarily due to the acquisition of NERCO, the purchase of
additional working interests in producing properties and new wells coming
onstream. North Sea volumes were up due to the T-Block acquisition and
new wells onstream at Brae Field. These production increases at domestic
and North Sea properties were partially offset by natural declines at
mature producing properties. Volumes from other foreign operations were
down primarily due to the sale of certain Canadian properties in late
1993.
The improvement in domestic natural gas deliveries, up over 87 million
and 99 million cubic feet per day in the second quarter and first half of
1994, respectively, was primarily due to the late-1993 acquisition of
NERCO and new domestic wells coming onstream. These increases were
partially offset by the effects of natural declines at mature producing
properties, and the sale of a limited number of domestic properties and
certain Canadian properties since the 1993 periods.
Costs and expenses increased during the second quarter and first half
of 1994. Lease operating and facility expenses were higher in both periods
due to additional operating costs for properties acquired since the
comparable 1993 periods and new wells coming onstream. DD&A was up 59%
and 75%, respectively, from the comparable 1993 periods due primarily to
DD&A on properties and working interests acquired in 1993. These
increases were reduced somewhat by the cumulative impact in the second
quarter of favorable reserve revisions and revisions to the original
allocation of a portion of the costs associated with the NERCO acquisition
and the lower DD&A resulting from the sale of certain Canadian properties
in late 1993. Dry hole and exploratory charges were up in 1994 due to the
write-off of unsucessful wells and higher domestic seismic costs incurred.
General, administrative and other expenses remained essentially unchanged
from the 1993 periods. Interest and debt expenses increased due to the
higher debt level incurred primarily in late 1993. An increase in
interest capitalized on a greater number of qualifying projects partially
offset the higher interest expense.
REFINING OPERATIONS
Refining operations resulted in a $.9 million pretax operating profit
for the second quarter of 1994, which was up from the $.5 million
operating loss reported in the comparable 1993 quarter. The favorable
impact of lower crude oil feedstock costs ($18 million) more than offset
revenue declines caused by lower product prices ($14 million) and sales
volumes ($3 million).
For the first half of 1994 refining operations resulted in a $2 million
pretax operating profit, which was up from the $1 million operating loss
reported in the comparable 1993 period. Higher sales volumes ($12 million)
and the favorable impact of lower crude oil feedstock costs ($23 million)
more than offset lower revenues due to declining product prices ($31
million).
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LIQUIDITY AND CAPITAL RESOURCES
In the first half of 1994, the Company generated approximately $88
million in cash from operations. However, cash and equivalents were
reduced $5 million primarily as the result of expenditures for capital
projects ($104 million), expenditures associated with asset acquisitions
and dispositions ($16 million) and dividends paid ($17 million). The
Company's cash position was supplemented with advances against cash
surrender values of life insurance policies ($34 million), net increases
in long-term debt ($11 million) and the proceeds from assets sales ($11
million).
In the second half of 1994, the Company presently anticipates spending
approximately $160 million for capital projects, which the Company expects
to fund from operating cash flows. The Company expects to supplement its
working capital, from time-to-time, through its commercial paper program
and its existing revolving credit facility.
As explained in Note 8 of "Notes to Consolidated Financial Statements"
in the Company's 1993 Annual Report to Shareholders, the Company completed
the early retirement of the $133.5 million, 8.92% Term Loan (discounted
to yield 10.7%) due July 1994 utilizing the Revolving Credit Facility in
January 1994.
NOTE: The accompanying consolidated financial statements and notes
thereto included in Item 1. of this Form 10-Q and the petroleum
segment information and operating data following this Item 2. are
an integral part of this discussion and analysis and should be
read in conjunction herewith.
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<TABLE>
THE LOUISIANA LAND AND EXPLORATION COMPANY
PETROLEUM SEGMENT INFORMATION
(Millions of dollars)
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1994 1993 1994 1993
_____________________________________________________________________________________
<S> <C> <C> <C> <C>
Sales to unaffiliated customers:
Domestic $163.7 168.9 351.0 331.1
North Sea 21.1 10.2 34.0 20.6
Other foreign 3.6 10.2 8.6 21.4
_____________________________________________________________________________________
188.4 189.3 393.6 373.1
Interest and other income 2.3 5.4 3.8 8.5
_____________________________________________________________________________________
Total revenues $190.7 194.7 397.4 381.6
_____________________________________________________________________________________
Earnings before income taxes:
Operating profit (loss):
Domestic 20.5 27.9 40.4 45.9
North Sea .9 (2.7) (.3) (2.4)
Other foreign (3.2) (2.5) (6.4) (2.4)
_____________________________________________________________________________________
18.2 22.7 33.7 41.1
Other income (expense), net (16.0) (12.7) (22.6) (26.1)
_____________________________________________________________________________________
Earnings before income taxes $ 2.2 10.0 11.1 15.0
_____________________________________________________________________________________
Capital expenditures:
Exploration:
Domestic 12.6 4.7 23.4 11.0
North Sea .4 .1 .8 .9
Other foreign 3.2 - 7.7 5.1
_____________________________________________________________________________________
16.2 4.8 31.9 17.0
_____________________________________________________________________________________
Development:
Domestic 19.0 14.4 36.7 21.3
North Sea 5.8 6.4 9.5 23.6
Other foreign 3.3 .1 5.3 .4
_____________________________________________________________________________________
28.1 20.9 51.5 45.3
_____________________________________________________________________________________
44.3 25.7 83.4 62.3
Refining and marketing 4.0 6.5 6.8 9.9
_____________________________________________________________________________________
48.3 32.2 90.2 72.2
Capitalized interest 5.7 4.4 11.5 8.4
Other .6 .7 1.3 1.4
_____________________________________________________________________________________
$ 54.6 37.3 103.0 82.0
_____________________________________________________________________________________
</TABLE>
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<TABLE>
THE LOUISIANA LAND AND EXPLORATION COMPANY
OPERATING DATA
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1994 1993 1994 1993
_____________________________________________________________________________________
<S> <C> <C> <C> <C>
OIL AND GAS OPERATIONS1
CRUDE AND CONDENSATE2
Production (thousands of barrels per day):
Domestic 22.2 20.8 23.2 20.4
North Sea 14.3 6.2 12.3 6.3
Other foreign 3.3 6.7 3.9 7.0
_____________________________________________________________________________________
39.8 33.7 39.4 33.7
_____________________________________________________________________________________
Average price received (per barrel):
Domestic $17.07 18.48 15.43 18.71
North Sea 15.69 17.44 14.77 17.41
Other foreign 11.23 15.59 11.08 15.65
Consolidated 16.09 17.71 14.80 17.83
_____________________________________________________________________________________
PLANT PRODUCTS
Production (thousands of barrels per day):
Domestic 2.3 2.7 2.3 2.4
North Sea .5 .3 .4 .3
_____________________________________________________________________________________
2.8 3.0 2.7 2.7
_____________________________________________________________________________________
Average price received (per barrel):
Domestic $ 9.97 12.03 9.42 11.93
North Sea 12.40 13.28 11.91 13.21
Consolidated 10.39 12.16 9.78 12.09
_____________________________________________________________________________________
NATURAL GAS
Production (millions of cubic feet per day):
Domestic 239.6 152.1 241.5 142.4
North Sea .4 .1 .3 .1
Other foreign 3.4 4.6 3.4 5.9
CLAM Petroleum Company 34.7 39.9 38.9 42.2
_____________________________________________________________________________________
278.1 196.7 284.1 190.6
_____________________________________________________________________________________
Average price received (per MCF):
Domestic $ 1.97 2.23 2.18 2.13
North Sea 1.89 1.86 1.83 1.62
Other foreign 1.51 1.39 1.76 1.29
CLAM Petroleum Company 2.24 2.51 2.17 2.45
Consolidated 2.00 2.27 2.17 2.17
_____________________________________________________________________________________
1 Includes the Company's 50% equity interest in its unconsolidated affiliate, CLAM
Petroleum Company.
2 Before the elimination of intercompany transfers.
</TABLE>
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<TABLE>
THE LOUISIANA LAND AND EXPLORATION COMPANY
OPERATING DATA (CONTINUED)
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1994 1993 1994 1993
_____________________________________________________________________________________
<S> <C> <C> <C> <C>
REFINING OPERATIONS
Refining Operating Profit (Loss):
Revenues:
Refined products* $ 88.5 105.1 191.0 210.0
Other .7 .8 1.2 1.3
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89.2 105.9 192.2 211.3
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Cost and expenses:
Cost of sales* 76.7 95.2 167.8 190.7
Operating expenses 10.1 9.0 19.3 17.1
Depreciation .7 1.2 1.5 2.5
Taxes, other than income .8 1.0 1.6 2.0
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88.3 106.4 190.2 212.3
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$ .9 (.5) 2.0 (1.0)
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*Before the elimination of intercompany
transfers to the Company's refinery $ 6.9 5.6 12.7 9.3
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Sales (thousands of barrels per day) 49.8 51.2 54.8 51.8
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Average price received (per barrel) $19.50 22.57 19.25 22.48
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GROSS WELLS DRILLED
Working Interest
Exploratory:
Oil 2 7 3 13
Gas - 1 5 3
Dry - 5 4 11
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2 13 12 27
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Development:
Oil 1 2 2 3
Gas 2 3 3 4
Dry - - - -
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3 5 5 7
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Total working interest 5 18 17 34
Royalty Interest 8 11 14 19
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Total wells 13 29 31 53
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NET WELLS DRILLED
Exploratory:
Oil .4 3.1 .9 5.7
Gas - .2 3.0 1.4
Dry - 1.4 2.1 5.1
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.4 4.7 6.0 12.2
_____________________________________________________________________________________
Development:
Oil .2 .5 .5 .8
Gas .4 .5 .6 .7
Dry - - - -
_____________________________________________________________________________________
.6 1.0 1.1 1.5
_____________________________________________________________________________________
Total net wells 1.0 5.7 7.1 13.7
_____________________________________________________________________________________
</TABLE>
<PAGE>
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PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits:
NONE
(b) Reports on Form 8-K:
NONE
SIGNATURES
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.
THE LOUISIANA LAND AND EXPLORATION COMPANY
(REGISTRANT)
By: /s/ Jerry D. Carlisle
___________________________________________
JERRY D. CARLISLE
VICE PRESIDENT AND CONTROLLER
(PRINCIPAL ACCOUNTING OFFICER)
Dated: August 11, 1994
