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 SEPTEMBER 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 October 31, 1994
CAPITAL STOCK, $.15 PAR VALUE 33,374,877 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 September 30, 1994 and 1993 consolidated financial
statements 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 - September 30, 1994 and
December 31, 1993............................. 3
Consolidated Statements of Earnings (loss) - three
months and nine months ended September 30, 1994
and 1993...................................... 4
Consolidated Statements of Cash Flows - nine months
ended September 30, 1994 and 1993............. 5
Notes to Consolidated Financial Statements........ 6-8
Independent Accountants' Review 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)
September 30, December 31,
ASSETS 1994 1993
_____________________________________________________________________________________
<S> <C> <C>
CURRENT ASSETS:
Cash, including cash equivalents (September 30,
1994-$12.5; December 31, 1993-$15.5) $ 18.9 33.3
Accounts and notes receivable, principally trade 99.0 109.7
Income taxes receivable 4.9 5.2
Inventories 33.6 26.8
Prepaid expenses 6.5 12.7
Deferred income taxes - 2.6
_____________________________________________________________________________________
TOTAL CURRENT ASSETS 162.9 190.3
_____________________________________________________________________________________
Investments in affiliates 23.8 23.5
Property, plant and equipment 2,984.2 2,946.5
Less accumulated depletion, depreciation and amortization (1,430.0) (1,385.5)
_____________________________________________________________________________________
NET PROPERTY, PLANT AND EQUIPMENT 1,554.2 1,561.0
_____________________________________________________________________________________
Other assets 30.0 63.9
_____________________________________________________________________________________
$ 1,770.9 1,838.7
_____________________________________________________________________________________
LIABILITIES AND STOCKHOLDERS' EQUITY
_____________________________________________________________________________________
CURRENT LIABILITIES:
Accounts payable and accrued expenses 153.8 170.9
Income taxes payable 3.1 3.8
_____________________________________________________________________________________
TOTAL CURRENT LIABILITIES 156.9 174.7
_____________________________________________________________________________________
Deferred income taxes 145.4 151.2
Long-term debt 733.5 734.5
Other liabilities 158.9 178.5
_____________________________________________________________________________________
STOCKHOLDERS' EQUITY:
Capital stock 5.7 5.7
Additional paid-in capital 83.8 82.9
Retained earnings 655.0 684.4
_____________________________________________________________________________________
744.5 773.0
Loans to ESOP (6.0) (8.8)
Cost of capital stock in treasury (162.3) (164.4)
_____________________________________________________________________________________
TOTAL STOCKHOLDERS' EQUITY 576.2 599.8
_____________________________________________________________________________________
$ 1,770.9 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 (LOSS)
(UNAUDITED)
(Millions, except per share data)
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
1994 1993 1994 1993
_____________________________________________________________________________________
<S> <C> <C> <C> <C>
REVENUES:
Oil and gas $105.1 86.6 313.8 258.9
Refined products 92.3 101.4 270.6 302.1
Gain on sale of oil and gas properties .2 - 6.8 -
Other .3 5.5 4.1 14.1
_____________________________________________________________________________________
197.9 193.5 595.3 575.1
_____________________________________________________________________________________
COSTS AND EXPENSES:
Lease operating and facility expenses 28.6 26.3 86.3 76.7
Refinery cost of sales and operating
expenses 93.9 101.6 268.3 300.1
Dry holes and exploratory charges 25.6 13.1 51.6 34.5
Depletion, depreciation and amortization 44.9 28.2 137.5 81.0
Taxes, other than on earnings 6.1 6.3 18.9 19.0
General, administrative and other
expenses 10.7 10.6 31.5 31.2
Interest and debt expenses 6.7 4.8 18.7 15.0
Reversal of litigation accrual - - (10.0) -
_____________________________________________________________________________________
216.5 190.9 602.8 557.5
_____________________________________________________________________________________
Earnings (loss) before income taxes (18.6) 2.6 (7.5) 17.6
Income tax expense (benefit) (7.3) 4.4 (3.0) 11.1
_____________________________________________________________________________________
Earnings (loss) before cumulative effect of
changes in accounting principles (11.3) (1.8) (4.5) 6.5
Cumulative effect on years prior to
1993 of changes in accounting
principles - - - .2
_____________________________________________________________________________________
NET EARNINGS (LOSS) $(11.3) (1.8) (4.5) 6.7
_____________________________________________________________________________________
Earnings (loss) per share before
cumulative effect of changes in
accounting principles (0.34) (0.06) (0.14) 0.22
Cumulative effect on years prior to
1993 of changes in accounting principles - - - 0.01
_____________________________________________________________________________________
EARNINGS (LOSS) PER SHARE $(0.34) (0.06) (0.14) 0.23
_____________________________________________________________________________________
AVERAGE SHARES 33.4 28.9 33.4 28.7
_____________________________________________________________________________________
CASH DIVIDENDS PER SHARE $ 0.25 0.25 0.75 0.75
_____________________________________________________________________________________
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>
Nine months ended
September 30,
1994 1993
_____________________________________________________________________________________
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss) $ (4.5) 6.7
Adjustments to reconcile to cash flows
from operations:
Gain on sale of oil and gas properties (6.8) -
Changes in accounting principles - (.2)
Depletion, depreciation and amortization 137.5 81.0
Deferred income taxes (3.3) (10.7)
Dry holes and impairment charges 29.1 15.5
Other 2.0 10.0
_____________________________________________________________________________________
154.0 102.3
Changes in operating assets and liabilities:
Net (increase) decrease in receivables 20.7 (17.0)
Net (increase) decrease in inventories (8.5) 1.6
Net (increase) decrease in prepaid items 6.8 (2.1)
Net increase (decrease) in payables (24.0) 15.0
Other 1.6 10.1
_____________________________________________________________________________________
NET CASH FLOWS FROM OPERATING ACTIVITIES 150.6 109.9
_____________________________________________________________________________________
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of NERCO - (359.1)
Capital expenditures (166.1) (128.1)
Proceeds from asset sales 14.9 1.6
Other (19.9) (33.9)
_____________________________________________________________________________________
NET CASH FLOWS FROM INVESTING ACTIVITIES (171.1) (519.5)
_____________________________________________________________________________________
CASH FLOWS FROM FINANCING ACTIVITIES:
Additions to long-term debt 152.0 471.0
Repayments of long-term debt (153.0) (68.6)
Advances against cash surrender value 34.4 -
Dividends (24.9) (21.5)
Repayment of loans to ESOP 2.8 2.2
Purchase of treasury stock - (1.5)
Other (5.2) (3.1)
_____________________________________________________________________________________
NET CASH FLOWS FROM FINANCING ACTIVITIES 6.1 378.5
_____________________________________________________________________________________
DECREASE IN CASH AND CASH EQUIVALENTS $ (14.4) (31.1)
_____________________________________________________________________________________
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 September 30, 1994, and the results of operations and
cash flows for the three-month and nine-month periods ended September
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 nine-month periods ending
September 30, 1993 as though the acquisition had taken place on
January 1, 1993, follows:
<TABLE>
<CAPTION>
(Millions, except per share data)
Three months Nine months
ended ended
September 30, September 30,
1993 1993
_________________________________________________________________________________
<S> <C> <C>
Revenues $217.1 666.8
_________________________________________________________________________________
Earnings (loss) before cumulative effect of changes
in accounting principle (13.4) (6.5)
Cumulative effect on years prior to 1993 of changes
in accounting principles - .2
_________________________________________________________________________________
Net earnings (loss) $(13.4) (6.3)
_________________________________________________________________________________
Earnings (loss) per share $(0.40) (0.19)
_________________________________________________________________________________
</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.
<PAGE>
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
5. With the enactment of the Budget Reconciliation Act of 1993, the
federal statutory corporate income tax rate was increased from 34% to
35% retroactive to January 1, 1993. As a result, the Company
increased its deferred income tax liabilities as of January 1, 1993
with a charge to income tax expense of $3 million ($0.10 per share)
during the quarter ended September 30, 1993. The rate increase had
an immaterial effect on income tax expense for the nine months ended
September 30, 1993.
6. For the three months ended September 30, 1994 and 1993, interest costs
incurred were $11.8 million and $9.3 million, respectively, of which
$5.1 million and $4.5 million, respectively, were capitalized as part
of the cost of property, plant and equipment. For the nine months
ended September 30, 1994 and 1993, interest costs incurred were $35.3
million and $27.9 million, respectively, of which $16.6 million and
$12.9 million, respectively, were capitalized as part of the cost of
property, plant and equipment.
7. 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.
8. 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 nine-month periods ended September 30,
1994 and 1993 are presented in accordance with Regulation S-X, Rule
10-01(b).
<TABLE>
<CAPTION>
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
1994 1993 1994 1993
________________________________________________________________________________
<S> <C> <C> <C> <C>
Gross revenues $12.9 5.1 44.1 43.5
________________________________________________________________________________
Operating profit 2.5 .9 22.2 22.6
________________________________________________________________________________
Earnings (loss) before cumulative effect
of change in accounting principle (4.8) (1.2) 2.9 7.5
Cumulative effect on years prior to
1993 of change in accounting principle
for income taxes - - - (6.0)
________________________________________________________________________________
Net earnings (loss) $(4.8) (1.2) 2.9 1.5
________________________________________________________________________________
</TABLE>
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
9. 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 ACCOUNTANTS' REVIEW 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 September 30, 1994, and the
related consolidated statements of earnings and cash flows for the three-
month and nine-month periods ended September 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 LLP
KPMG PEAT MARWICK LLP
New Orleans, Louisiana
November 7, 1994
<PAGE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
REVIEW OF OPERATIONS
Third quarter operations resulted in a pretax loss of $18.7 million in
1994, down from the $2.6 million pretax earnings reported in the
comparable 1993 quarter. As a result, a $7.5 million pretax loss was
incurred during the first nine months of 1994, compared to the $17.6
pretax earnings reported in the 1993 period. Even though oil and gas
revenues were up significantly in both 1994 periods, the higher revenues
were not enough to offset the increased dry hole and exploratory charges,
higher depletion, depreciation and amortization (DD&A) charges and
operating losses from refining operations. The 1994 loss also included
the Company's equity in the third quarter loss of its 50% owned affiliate,
CLAM Petroleum Company, which resulted from increases in exploration
charges and in CLAM's foreign income tax provision to adjust for exchange
rate fluctuations. This adjustment reduced the Company's equity in CLAM's
net earnings by $2 million. Partially offsetting the year-to-date loss
were 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 $6.8 million pretax gain on the sale of oil and
gas properties.
The Company's effective income tax rate exceeds the Federal statutory
rate of 35% primarily as a result of higher tax rates in foreign
jurisdictions.
OIL AND GAS OPERATIONS
Revenues from the Company's oil and gas operations were up over $18
million from the third quarter of 1993. Liquids revenues were up almost
$16 million due to increased crude oil volumes ($11 million) and higher
worldwide crude oil prices ($5 million). Natural gas revenues were up
almost $3 million as a result of higher domestic deliveries ($10 million),
which were partially offset by lower prices ($7 million).
In the first nine months of 1994, revenues from the Company's oil and
gas operations were up $55 million from the comparable 1993 period.
Natural gas revenues were up almost $43 million as a result of higher
domestic deliveries ($48 million), which were partially offset by lower
prices ($5 million). Liquids revenues were up approximately $11 million
due to increased crude oil volumes ($30 million). The higher crude oil
volumes more than offset the effect of lower worldwide crude oil prices
($18 million).
Crude oil volumes in the third quarter and first nine months of 1994
increased 6,700 and 6,000 barrels per day, respectively, from the 1993
periods due to higher domestic and North Sea volumes. The increase in
domestic volumes was primarily due to the late-1993 acquisition of NERCO,
new wells coming onstream and increased production from domestic wells
that were shut-in for repairs and maintenance during the prior year
periods. North Sea volumes were up due to the late-1993 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. <PAGE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS. (CONTINUED)
The improvement in domestic natural gas deliveries, up approximately
50 million and 83 million cubic feet per day in the third quarter and
first nine months of 1994, respectively, was primarily due to the
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. In
addition, domestic gas sales volumes began being voluntarily curtailed
late in the third quarter in response to low prices, the duration and
impact of which is not known at this time.
Costs and expenses increased during the third quarter and first nine
months of 1994. Lease operating and facility expenses were higher in both
periods primarily due to additional operating costs for properties
acquired since the comparable 1993 periods. DD&A was up 59% and 70%,
respectively, from the comparable 1993 periods due primarily to DD&A on
properties and working interests acquired in late 1993. These increases
were reduced somewhat by 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 unsuccessful 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 of investments in qualifying projects resulted in
greater capitalized interest which partially offset the higher interest
expense.
REFINING OPERATIONS
Refining operations in the 1994 third quarter resulted in a $3 million
pretax operating loss. A $1.9 million operating loss was reported in the
comparable 1993 quarter. The revenue declines caused by lower sales
volumes ($13 million) along with higher operating costs more than offset
the favorable impact of lower crude oil feedstock costs ($10 million) and
higher product prices ($2 million).
Due to the third-quarter loss, refining operations for the first nine
months of 1994 resulted in a pretax operating loss of $0.9 million. A
$2.9 million operating loss was reported in the comparable 1993 period.
Lower revenues, due to declining product prices ($28 million) and lower
sales volumes ($2 million), along with higher operating costs more than
offset the favorable impact of lower crude oil feedstock costs ($33
million).
<PAGE>
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LIQUIDITY AND CAPITAL RESOURCES
In the nine months of 1994, the Company generated approximately $150
million in cash from operations. However, cash and equivalents were
reduced $14 million primarily as the result of expenditures for capital
projects ($166 million), expenditures associated with asset acquisitions
and dispositions ($10 million) and dividends paid ($25 million). The
Company's cash position was supplemented with advances against cash
surrender values of life insurance policies ($34 million) and the proceeds
from assets sales ($15 million).
The Company expects to fund fourth quarter expenditures, including
capital expenditures of approximately $70 million, primarily from
operating cash flows. However, 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 Nine months ended
September 30, September 30,
1994 1993 1994 1993
_____________________________________________________________________________________
<S> <C> <C> <C> <C>
Sales to unaffiliated customers:
Domestic $ 166.0 169.7 517.0 500.7
North Sea 26.4 9.5 60.4 30.1
Other foreign 5.2 8.8 13.8 30.2
_____________________________________________________________________________________
197.6 188.0 591.2 561.0
Interest and other income .3 5.5 4.1 14.1
_____________________________________________________________________________________
Total revenues $ 197.9 193.5 595.3 575.1
_____________________________________________________________________________________
Earnings (loss) before income taxes:
Operating profit (loss):
Domestic 6.3 19.1 46.7 65.0
North Sea 4.3 (1.8) 4.0 (4.2)
Other foreign (10.4) (2.7) (16.8) (5.1)
_____________________________________________________________________________________
.2 14.6 33.9 55.7
Other income (expense), net (18.8) (12.0) (41.4) (38.1)
_____________________________________________________________________________________
Earnings (loss) before income taxes $ (18.6) 2.6 (7.5) 17.6
_____________________________________________________________________________________
Capital expenditures:
Exploration:
Domestic 12.2 10.1 35.6 21.1
North Sea .8 .7 1.6 1.6
Other foreign 5.0 2.3 12.7 7.4
_____________________________________________________________________________________
18.0 13.1 49.9 30.1
_____________________________________________________________________________________
Development:
Domestic 25.6 18.4 62.3 39.7
North Sea 4.3 4.7 13.8 28.3
Other foreign 4.1 .4 9.4 .8
_____________________________________________________________________________________
34.0 23.5 85.5 68.8
_____________________________________________________________________________________
52.0 36.6 135.4 98.9
Refining and marketing 2.8 4.1 9.6 14.0
_____________________________________________________________________________________
54.8 40.7 145.0 112.9
Capitalized interest 5.1 4.4 16.6 12.8
Other 1.2 1.0 2.5 2.4
_____________________________________________________________________________________
$ 61.1 46.1 164.1 128.1
_____________________________________________________________________________________
</TABLE>
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<TABLE>
THE LOUISIANA LAND AND EXPLORATION COMPANY
OPERATING DATA
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
1994 1993 1994 1993
_____________________________________________________________________________________
<S> <C> <C> <C> <C>
OIL AND GAS OPERATIONS1
CRUDE AND CONDENSATE2
Production (thousands of barrels per day):
Domestic 21.9 21.4 22.8 20.8
North Sea 16.1 6.2 13.6 6.3
Other foreign 2.9 6.6 3.5 6.8
_____________________________________________________________________________________
40.9 34.2 39.9 33.9
_____________________________________________________________________________________
Average price received (per barrel):
Domestic $17.66 16.53 16.15 17.95
North Sea 17.17 15.79 15.73 16.87
Other foreign 15.94 13.84 12.42 15.07
Consolidated 17.35 15.88 15.68 17.17
_____________________________________________________________________________________
PLANT PRODUCTS
Production (thousands of barrels per day):
Domestic 2.6 2.3 2.4 2.4
North Sea .7 .5 .5 .4
_____________________________________________________________________________________
3.3 2.8 2.9 2.8
_____________________________________________________________________________________
Average price received (per barrel):
Domestic $10.16 10.75 9.70 11.55
North Sea 11.07 12.53 11.51 12.92
Consolidated 10.35 11.05 10.00 11.74
_____________________________________________________________________________________
NATURAL GAS
Production (millions of cubic feet per day):
Domestic 215.7 165.5 232.8 150.2
North Sea 1.1 .2 .6 .2
Other foreign 2.4 3.6 3.0 5.1
CLAM Petroleum Company 29.9 10.8 35.9 31.6
_____________________________________________________________________________________
249.1 180.1 272.3 187.1
_____________________________________________________________________________________
Average price received (per MCF):
Domestic $ 1.78 2.15 2.05 2.14
North Sea 2.62 1.36 2.34 1.51
Other foreign 1.87 1.24 1.79 1.28
CLAM Petroleum Company 2.25 2.93 2.19 2.51
Consolidated 1.84 2.18 2.07 2.18
_____________________________________________________________________________________
1 Includes the Company's 50% equity interest in its unconsolidated affiliate, CLAM
Petroleum Company.
2 Before the elimination of intercompany transfers.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
THE LOUISIANA LAND AND EXPLORATION COMPANY
OPERATING DATA (CONTINUED)
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
1994 1993 1994 1993
_____________________________________________________________________________________
<S> <C> <C> <C> <C>
REFINING OPERATIONS
Refining Operating Profit (Loss):
Revenues:
Refined products* $ 97.2 108.1 288.2 318.1
Other .5 .3 1.7 1.6
_____________________________________________________________________________________
97.7 108.4 289.9 319.7
_____________________________________________________________________________________
Cost and expenses:
Cost of sales* 88.6 99.1 256.4 289.8
Operating expenses 10.2 9.2 29.5 26.3
Depreciation .9 1.3 2.4 3.8
Taxes, other than income .9 .7 2.5 2.7
_____________________________________________________________________________________
100.6 110.3 290.8 322.6
_____________________________________________________________________________________
$ (2.9) (1.9) (.9) (2.9)
_____________________________________________________________________________________
*Before the elimination of intercompany
transfers to the Company's refinery $ 4.9 6.7 17.6 16.0
_____________________________________________________________________________________
Sales (thousands of barrels per day) 50.3 57.1 53.3 53.6
_____________________________________________________________________________________
Average price received (per barrel) $21.04 20.57 19.82 21.75
_____________________________________________________________________________________
_____________________________________________________________________________________
GROSS WELLS DRILLED
Working Interest
Exploratory:
Oil - 8 3 21
Gas 5 3 10 6
Dry 6 5 10 16
_____________________________________________________________________________________
11 16 23 43
_____________________________________________________________________________________
Development:
Oil 3 4 5 7
Gas 7 2 10 6
Dry - 1 - 1
_____________________________________________________________________________________
10 7 15 14
_____________________________________________________________________________________
Total working interest 21 23 38 57
Royalty Interest 4 4 18 23
_____________________________________________________________________________________
Total wells 25 27 56 80
_____________________________________________________________________________________
NET WELLS DRILLED
Exploratory:
Oil - 5.0 .9 10.7
Gas 1.9 1.2 4.9 2.6
Dry 4.3 2.7 6.4 7.8
_____________________________________________________________________________________
6.2 8.9 12.2 21.1
_____________________________________________________________________________________
Development:
Oil .2 1.0 .7 1.8
Gas 2.0 .3 2.6 1.0
Dry - .3 - .3
_____________________________________________________________________________________
2.2 1.6 3.3 3.1
_____________________________________________________________________________________
Total net wells 8.4 10.5 15.5 24.2
_____________________________________________________________________________________
</TABLE>
<PAGE>
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits:
Exhibit 27 - Financial Data Schedule
(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: November 9, 1994
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AND CONSOLIDATED STATEMENT OF EARNINGS (LOSS) OF THE
LOUISIANA LAND AND EXPLORATION COMPANY AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
<CASH> 18,900
<SECURITIES> 0
<RECEIVABLES> 103,900
<ALLOWANCES> 0
<INVENTORY> 33,600
<CURRENT-ASSETS> 162,900
<PP&E> 2,984,200
<DEPRECIATION> 1,430,000
<TOTAL-ASSETS> 1,770,900
<CURRENT-LIABILITIES> 156,900
<BONDS> 733,500
<COMMON> 5,700
0
0
<OTHER-SE> 570,500
<TOTAL-LIABILITY-AND-EQUITY> 1,770,900
<SALES> 591,200
<TOTAL-REVENUES> 595,300
<CGS> 0
<TOTAL-COSTS> 562,600
<OTHER-EXPENSES> 21,500
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 18,700
<INCOME-PRETAX> (7,500)
<INCOME-TAX> (3,000)
<INCOME-CONTINUING> (4,500)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,500)
<EPS-PRIMARY> (.14)
<EPS-DILUTED> (.14)
</TABLE>
