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, 1996
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, 1996
CAPITAL STOCK, $.15 PAR VALUE 34,175,029 SHARES
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THE LOUISIANA LAND AND EXPLORATION COMPANY
INDEX
Page
Number
_________________________________________________________________
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements:
(The September 30, 1996 and 1995 consolidated financial
statements included in this filing on Form 10-Q have been
reviewed by KPMG Peat Marwick LLP, independent auditors, in
accordance with established professional standards and
procedures for such a review. The report of KPMG Peat
Marwick LLP commenting upon their review is included
herein.)
Consolidated Balance Sheets - September 30, 1996 and
December 31, 1995............................. 3
Consolidated Statements of Earnings - three months
and nine months ended September 30, 1996
and 1995...................................... 4
Consolidated Statements of Cash Flows - nine months
ended September 30, 1996 and 1995............. 5
Notes to Consolidated Financial Statements........ 6-7
Independent Auditors' Review Report............... 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations............................... 9-11
Petroleum Segment Information......................... 12
Operating Data........................................ 13-14
Part II. OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K............ 15
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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 1996 1995
_____________________________________________________________________________________
<S> <C> <C>
CURRENT ASSETS:
Cash, including cash equivalents (September 30,
1996-$5.2; December 31, 1995-$1.0) $ 12.3 10.3
Accounts and notes receivable, principally trade 85.6 143.6
Income taxes receivable .6 .2
Inventories .4 38.7
Prepaid expenses 7.1 12.9
Deferred income taxes .9 .9
_____________________________________________________________________________________
TOTAL CURRENT ASSETS 106.9 206.6
_____________________________________________________________________________________
Investments in affiliates 8.4 19.9
Property, plant and equipment 3,062.0 3,120.9
Less accumulated depletion, depreciation and amortization (1,886.4) (1,913.3)
_____________________________________________________________________________________
NET PROPERTY, PLANT AND EQUIPMENT 1,175.6 1,207.6
_____________________________________________________________________________________
Other assets 27.1 33.6
_____________________________________________________________________________________
$ 1,318.0 1,467.7
_____________________________________________________________________________________
LIABILITIES AND STOCKHOLDERS' EQUITY
_____________________________________________________________________________________
CURRENT LIABILITIES:
Accounts payable and accrued expenses 135.9 199.8
Income taxes payable 2.5 .8
_____________________________________________________________________________________
TOTAL CURRENT LIABILITIES 138.4 200.6
_____________________________________________________________________________________
Deferred income taxes 69.4 49.6
Long-term debt 505.4 691.6
Other liabilities 161.2 155.2
_____________________________________________________________________________________
STOCKHOLDERS' EQUITY:
Capital stock 5.1 5.0
Additional paid-in capital 40.5 14.8
Retained earnings 398.2 352.8
_____________________________________________________________________________________
443.8 372.6
Loans to ESOP (.2) (1.9)
_____________________________________________________________________________________
TOTAL STOCKHOLDERS' EQUITY 443.6 370.7
_____________________________________________________________________________________
$ 1,318.0 1,467.7
_____________________________________________________________________________________
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 Nine months ended
September 30, September 30,
1996 1995 1996 1995
_____________________________________________________________________________________
<S> <C> <C> <C> <C>
REVENUES:
Oil and gas $136.7 116.0 420.2 340.4
Refined products 38.5 97.1 263.5 272.5
Gain (loss) on sale of petroleum
assets 1.7 (.7) 2.0 1.5
Other 2.3 (.4) 7.1 3.8
_____________________________________________________________________________________
179.2 212.0 692.8 618.2
_____________________________________________________________________________________
COSTS AND EXPENSES:
Lease operating and facility expenses 30.2 29.0 88.1 88.4
Refinery cost of sales and operating
expenses 38.3 96.3 254.4 267.7
Dry holes and exploratory charges 25.8 17.7 69.1 49.8
Depletion, depreciation and amortization 42.7 40.7 130.8 116.6
Taxes, other than on earnings 5.3 5.8 17.8 18.5
General, administrative and other
expenses 10.1 9.8 29.4 30.3
Interest and debt expenses 8.3 9.9 26.4 28.9
_____________________________________________________________________________________
160.7 209.2 616.0 600.2
_____________________________________________________________________________________
Earnings before income taxes 18.5 2.8 76.8 18.0
Income tax expense 4.8 1.0 25.3 6.3
_____________________________________________________________________________________
NET EARNINGS $ 13.7 1.8 51.5 11.7
_____________________________________________________________________________________
EARNINGS PER SHARE $ 0.40 0.05 1.51 0.35
_____________________________________________________________________________________
AVERAGE SHARES 34.4 33.6 34.1 33.5
_____________________________________________________________________________________
CASH DIVIDENDS PER SHARE $ 0.06 0.06 0.18 0.18
_____________________________________________________________________________________
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,
1996 1995
_____________________________________________________________________________________
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 51.5 11.7
Adjustments to reconcile to cash flows
from operations:
Gain on sale of petroleum assets (2.0) (1.5)
Depletion, depreciation and amortization 130.8 116.6
Deferred income taxes 19.8 4.7
Dry holes and impairment charges 41.6 29.9
Other 13.0 3.6
_____________________________________________________________________________________
254.7 165.0
Changes in operating assets and liabilities,
net of the sale of refining assets:
Net (increase) decrease in receivables (18.8) 21.7
Net (increase) decrease in inventories (4.2) 11.1
Net decrease in prepaid items 3.7 3.0
Net increase (decrease) in payables 33.7 (38.5)
Other (.6) .6
_____________________________________________________________________________________
NET CASH FLOWS FROM OPERATING ACTIVITIES 268.5 162.9
_____________________________________________________________________________________
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (164.4) (133.7)
Proceeds from asset sales 70.4 7.6
Other (9.8) (14.5)
_____________________________________________________________________________________
NET CASH FLOWS FROM INVESTING ACTIVITIES (103.8) (140.6)
_____________________________________________________________________________________
CASH FLOWS FROM FINANCING ACTIVITIES:
Additions to long-term debt - 40.5
Repayments of long-term debt (186.2) (68.3)
Advances against cash surrender value 9.6 9.0
Dividends (6.1) (6.0)
Repayment of loans to ESOP 1.7 2.6
Other 18.3 (5.0)
_____________________________________________________________________________________
NET CASH FLOWS FROM FINANCING ACTIVITIES (162.7) (27.2)
_____________________________________________________________________________________
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 2.0 (4.9)
_____________________________________________________________________________________
See accompanying notes to consolidated financial statements.
</TABLE>
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<PAGE>
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, 1996, and the results of operations and
cash flows for the three-month and nine-month periods ended September
30, 1996 and 1995.
Maryland General Corporate Law was amended whereby repurchased stock
of a corporation constitutes authorized but unissued stock rather than
treasury stock. Accordingly, effective January 1, 1994, the par value
of treasury stock ($.7 million) has been reclassed as a reduction of
capital stock issued. The cost of treasury stock in excess of par
value has been charged to additional paid-in capital ($81.5 million),
to the extent available, and the balance ($82.2 million) has been
charged to retained earnings. All capital stock transactions
subsequent to January 1, 1994 are reflected as either issuances or
retirements of capital stock. This change in the law had no effect
on total stockholders' equity.
2. On July 31, 1996, the Company completed the sale of its crude oil
refinery and terminal near Mobile, Alabama, including crude oil and
refined product inventories, for approximately $70 million resulting
in a pretax gain of approximately $2 million. The net book value of
refinery property, plant and equipment at that date totaled approxi-
mately $33 million. The following table sets forth the refinery
operating results for the periods indicated.
<TABLE>
<CAPTION>
Periods Ended Periods ended
September 30, 1996 September 30, 1995
One Seven Three Nine
Month Months Months Months
_____________________________________________________________________________________
<S> <C> <C> <C> <C>
REFINING OPERATIONS
Refining Operating Profit (Loss):
Revenues:
Refined products* $ 41.4 280.4 103.3 294.9
Other - .3 .1 .2
_____________________________________________________________________________________
41.4 280.7 103.4 295.1
_____________________________________________________________________________________
Cost and expenses:
Cost of sales* 37.3 244.7 92.7 260.3
Operating expenses 3.9 26.6 9.8 29.8
Depreciation .2 1.1 .5 1.3
Taxes, other than income .1 .9 .8 2.3
_____________________________________________________________________________________
41.5 273.3 103.8 293.7
_____________________________________________________________________________________
$ (.1) 7.4 (.4) 1.4
_____________________________________________________________________________________
*Before the elimination of intercompany
transfers to the Company's refinery $ 2.9 16.9 6.2 22.4
_____________________________________________________________________________________
</TABLE>
<PAGE>
<PAGE> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
3. For the three months ended September 30, 1996 and 1995, interest costs
incurred were $10.8 million and $13.4 million, respectively, of which
$2.5 million and $3.5 million, respectively, were capitalized as part
of the cost of property, plant and equipment. For the nine months
ended September 30, 1996 and 1995, interest costs incurred were $35.2
million and $41.0 million, respectively, of which $8.8 million and
$12.1 million, respectively, were capitalized as part of the cost of
property, plant and equipment.
4. 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.
5. 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,
1995.
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,
1996 and 1995 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,
1996 1995 1996 1995
________________________________________________________________________________
<S> <C> <C> <C> <C>
Gross revenues $16.5 14.0 69.6 59.7
________________________________________________________________________________
Operating profit 7.3 2.8 31.6 23.1
________________________________________________________________________________
Net earnings (loss) $ 2.2 .6 14.0 8.8
________________________________________________________________________________
</TABLE>
6. The Company has been notified by the U.S. Environmental Protection
Agency that it is one of many Potentially Responsible Parties (PRP)
with respect to certain National Priorities List sites. Based on its
evaluation of the 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 the results of operations,
cash flow or financial position of the Company.
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>
<PAGE>
INDEPENDENT AUDITORS' 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, 1996, and the
related consolidated statements of earnings and cash flows for the three-
month and nine-month periods ended September 30, 1996 and 1995. These
consolidated 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, 1995, and the
related consolidated statements of earnings, stockholders' equity, and
cash flows for the year then ended (not presented herein); and in our
report dated February 2, 1996, we expressed an unqualified opinion on
those consolidated financial statements. In our opinion, the information
set forth in the accompanying consolidated balance sheet as of
December 31, 1995, 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 11, 1996
<PAGE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
REVIEW OF OPERATIONS
Third quarter operations resulted in pretax earnings of $18.5 million
for the 1996 quarter and $76.8 million for the first nine months. These
results were up significantly from the pretax earnings of $2.8 million and
$18.0 million for the respective 1995 periods. The improvement in 1996
net earnings was primarily attributable to higher natural gas prices and
volumes and higher crude oil prices. The 1996 third quarter and first
nine months also benefitted from a nonrecurring pretax gain of
approximately $2.0 million from the sale of the Company's crude oil
refinery and terminal near Mobile, Alabama.
OIL AND GAS OPERATIONS
Revenues from the Company's oil and gas operations for the third
quarter of 1996 were up $21 million from the third quarter of 1995.
Natural gas revenues were up $20 million as a result of higher prices ($10
million) and deliveries ($10 million). Even though crude oil volumes were
down, liquids revenues were up $1 million primarily due to higher crude
oil prices.
In the first nine months of 1996 revenues from the Company's oil and
gas operations were up almost $80 million from the comparable 1995 period.
An increase in natural gas revenues of $75 million, which resulted from
higher prices ($55 million) and deliveries ($20 million), accounted for
most of the increase. Liquids revenues were up $4 million as a result of
higher crude oil prices ($18 million), which more than offset the effect
of reduced volumes ($12 million).
Crude oil volumes in the third quarter and first nine months of 1996
decreased 7500 and 2900 barrels per day (BPD), respectively, from the
comparable 1995 periods primarily due to lower North Sea and other
foreign volumes. The decline in North Sea volumes was attributable to
natural declines and the shutdown of the Tiffany and Toni fields at T-
Block during tie-in of the Thelma field. Volumes from other foreign
operations were down due to lower volumes at the KAKAP concession offshore
Indonesia and the effect of the 1995 fourth quarter sale of the Company's
Canadian properties. New wells onstream at south Louisiana properties
contributed significantly to domestic volumes for both 1996 periods.
However, natural production declines at mature properties partially offset
these production increases.
Natural gas deliveries were up 60 million and 44 million cubic feet per
day in the third quarter and first nine months of 1996, respectively,
primarily due to higher domestic volumes. Domestic deliveries were up due
to new wells onstream, the return to production of wells shut-in for
repairs and maintenance, and the return to production of domestic wells
voluntarily curtailed during the 1995 periods due to low prices. The
higher domestic deliveries were partially offset by the effects of natural
declines at mature producing properties and wells shut-in during 1996 for
repairs and maintenance. While North Sea deliveries were down in the 1996
<PAGE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS. (CONTINUED)
third quarter, deliveries were up in the nine month period due to
increased demand. Other foreign production, reflecting the sale of the
Company's Canadian properties, was down in both 1996 periods. Also,
contributing to the increases, were higher volumes from the Company's 50%-
owned affiliate, CLAM Petroleum Company.
Lease operating and facility expenses were up in both 1996 periods as
higher workover costs, repairs and maintenance costs and facilities
expenses more than offset the reductions in operating costs. Depletion,
depreciation and amortization (DD&A) was up $2 million and $14 million in
the 1996 third quarter and first nine months, respectively, as a result
of DD&A associated with new wells onstream. Dry holes and exploratory
charges increased in both 1996 periods due primarily to an increased
exploration effort and higher seismic costs incurred. General,
administrative and other expenses were down in the first nine months of
1996 due to the Company's continuing efforts to minimize expenses.
Interest and debt expenses were lower in both periods primarily as a
result of the Company's accelerated debt paydown.
LIQUIDITY AND CAPITAL RESOURCES
In the first nine months of 1996, the Company generated approximately
$269 million in cash from operations which, along with the $70 million
proceeds from the sale of the refinery and available cash, was used for
capital projects ($164 million), repayment of long-term debt ($186
million) and dividends ($6 million).
In 1995, the Company initiated a hedging program designated to minimize
the price risks associated with future natural gas and crude oil
production. This program utilizes futures, forwards, options and swap
contracts in series of transactions designed to set a floor price for
future production and at the same time allow the Company to participate
in market price increases above a set level over the floor price. At
September 30, 1996, approximately 24 trillion British Thermal Units (BTU)
of domestic gas production for the remainder of 1996 were covered by a
series of transactions designed to set an average floor price of $1.83 per
million BTU and at the same time allow the Company to participate in
natural gas price increases above the floor price and outside of specific
ranges. The Company's non-participation in price increases above the
floor price was limited to $0.18 per million BTU. For 1997, approximately
93 trillion BTU of domestic gas production were similarly hedged at an
average floor price of $1.84 per million BTU with the Company's non-
participation in price increases above the floor price limited to $0.17
per million BTU. For 1998, approximately 34 trillion BTU of domestic gas
production were similarly hedged at an average floor price of $1.76 per
million BTU with the Company's non-participation in price increases above
the floor price limited to $0.20 per million BTU. While these
transactions have no carrying value, their fair value, represented by the
estimated amount that would be required to terminate the contracts, were
<PAGE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS. (CONTINUED)
a net cost of $0.9 million for the 1996 hedges, a net benefit of $3.7
million for the 1997 hedges and a net benefit of $1.7 million for the 1998
hedges. (The Company estimates that its domestic natural gas production
averages approximately 1.07 million BTU for each thousand cubic feet.)
In addition, approximately 3.6 million barrels of the Company's worldwide
crude oil production for the remainder of 1996 were similarly hedged at
an average floor price of $17.40 per barrel with the Company's non-
participation in price increases above the floor price limited to $1.35
per barrel. These transactions also do not have carrying values, but
their fair value at September 30, 1996 amounted to a net cost of $2.8
million.
On June 28, 1996, the Company amended its $450 million revolving credit
agreement with a syndicate of banks to reduce the banks' commitments to
$350 million, extend the maturity for one year to June 30, 2001, reduce
interest rates and fees and improve other terms and conditions favorable
to the Company.
Effective July 31, 1996, the Company completed the sale of its crude
oil refinery and terminal near Mobile, Alabama for a pretax gain of
approximately $2 million. The proceeds from the sale of the refinery and
associated inventories were used to reduce long-term debt by approximately
$70 million.
The Company expects to fund its 1996 expenditures, including an
increased level of capital and exploration expenditures of approximately
$250 million, primarily from operating cash flows. The Company's
expenditures are continually reviewed, and revised as necessary, based on
perceived current and long-term economic conditions.
CAPITAL STOCK, DIVIDENDS AND OTHER MARKET DATA
As more fully discussed in Note 14 of "Notes to Consolidated Financial
Statements" in the Company's 1995 Annual Report to Shareholders, the
Company's Board of Directors in 1986 declared a dividend to shareholders
consisting of Capital Stock Purchase Rights ("Rights") issued under the
Shareholder Rights Agreement ("Agreement") to protect shareholders. At
its regularly scheduled meeting held on May 9, 1996, the Board of
Directors has amended and restated the terms of the Agreement to extend
the expiration date to June 6, 2006, increase the exercise price of Rights
to $175, lower the ownership threshold at which Rights become exercisable
to 20% and eliminate the provision that excluded an all-cash offer made
to shareholders for all outstanding shares.
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,
1996 1995 1996 1995
_____________________________________________________________________________________
<S> <C> <C> <C> <C>
Sales to unaffiliated customers:*
Domestic $ 141.1 169.0 567.3 494.5
North Sea 30.3 33.3 100.4 99.6
Other foreign 5.5 10.1 18.0 20.3
_____________________________________________________________________________________
176.9 212.4 685.7 614.4
Interest and other income 2.3 (.4) 7.1 3.8
_____________________________________________________________________________________
Total revenues $ 179.2 212.0 692.8 618.2
_____________________________________________________________________________________
Earnings (loss) before income taxes:*
Operating profit (loss):
Domestic 33.0 19.5 113.4 63.9
North Sea 7.2 9.6 29.3 27.0
Other foreign (4.0) (4.5) (11.2) (12.7)
_____________________________________________________________________________________
36.2 24.6 131.5 78.2
Other income (expense), net (17.7) (21.8) (54.7) (60.2)
_____________________________________________________________________________________
Earnings (loss) before income taxes $ 18.5 2.8 76.8 18.0
_____________________________________________________________________________________
Capital expenditures:
Exploration:
Domestic 36.4 14.4 80.3 37.2
North Sea .6 - 1.4 .4
Other foreign 7.7 5.0 14.1 13.2
_____________________________________________________________________________________
44.7 19.4 95.8 50.8
_____________________________________________________________________________________
Development:
Domestic 13.1 16.3 44.2 44.7
North Sea 3.6 2.8 13.9 9.9
Other foreign 2.1 2.3 6.9 9.3
_____________________________________________________________________________________
18.8 21.4 65.0 63.9
_____________________________________________________________________________________
63.5 40.8 160.8 114.7
Capitalized interest 2.5 3.5 8.8 12.1
Other 1.0 1.9 2.4 5.9
_____________________________________________________________________________________
$ 67.0 46.2 172.0 132.7
_____________________________________________________________________________________
* Includes refinery sales and operating profit through July 31, 1996. See Note 2 of
"Notes to Consolidated Financial Statements."
</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,
1996 1995 1996 1995
_____________________________________________________________________________________
<S> <C> <C> <C> <C>
OIL AND GAS OPERATIONS1
CRUDE AND CONDENSATE2
Production (thousands of barrels per day):
Domestic 21.3 20.1 21.0 20.8
North Sea 13.7 18.3 15.4 17.2
Other foreign 3.4 7.4 3.7 4.9
_____________________________________________________________________________________
38.4 45.8 40.1 42.9
_____________________________________________________________________________________
Average price received (per barrel):
Domestic $20.87 17.47 19.76 18.16
North Sea 19.54 16.52 18.84 17.31
Other foreign 17.93 14.87 17.66 14.90
Consolidated 20.14 16.67 19.21 17.45
_____________________________________________________________________________________
PLANT PRODUCTS
Production (thousands of barrels per day):
Domestic 2.6 2.6 2.2 2.9
North Sea .8 1.1 .9 1.0
_____________________________________________________________________________________
3.4 3.7 3.1 3.9
_____________________________________________________________________________________
Average price received (per barrel):
Domestic $12.49 11.58 12.46 11.43
North Sea 14.21 11.83 15.03 13.37
Consolidated 12.90 11.66 13.20 11.92
_____________________________________________________________________________________
NATURAL GAS
Production (millions of cubic feet per day):
Domestic 289.4 229.5 272.3 237.0
North Sea 24.1 27.1 30.1 25.1
Other foreign - .9 - 1.8
CLAM Petroleum Company 30.6 26.1 44.9 39.7
_____________________________________________________________________________________
344.1 283.6 347.3 303.6
_____________________________________________________________________________________
Average price received (per MCF):
Domestic $ 2.12 1.78 2.39 1.65
North Sea 2.10 1.74 2.17 2.14
Other foreign - 0.74 - .68
CLAM Petroleum Company 2.93 2.72 2.79 2.64
Consolidated 2.19 1.86 2.42 1.81
_____________________________________________________________________________________
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,
1996 1995 1996 1995
_____________________________________________________________________________________
<S> <C> <C> <C> <C>
GROSS WELLS DRILLED
Working Interest
Exploratory:
Oil 2 4 4 5
Gas 2 - 7 8
Dry 6 3 13 7
_____________________________________________________________________________________
10 7 24 20
_____________________________________________________________________________________
Development:
Oil 5 7 15 14
Gas 4 2 7 4
Dry - - - -
_____________________________________________________________________________________
9 9 22 18
_____________________________________________________________________________________
Total working interest 19 16 46 38
Royalty Interest 4 9 11 20
_____________________________________________________________________________________
Total wells 23 25 57 58
_____________________________________________________________________________________
NET WELLS DRILLED
Exploratory:
Oil 1.3 1.4 2.0 1.8
Gas 1.5 - 3.6 3.6
Dry 1.7 1.3 4.2 2.7
_____________________________________________________________________________________
4.5 2.7 9.8 8.1
_____________________________________________________________________________________
Development:
Oil .6 1.3 1.7 2.2
Gas .9 .7 2.4 1.2
Dry - - - -
_____________________________________________________________________________________
1.5 2.0 4.1 3.4
_____________________________________________________________________________________
Total net wells 6.0 4.7 13.9 11.5
_____________________________________________________________________________________
</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 12, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AND CONSOLIDATED STATEMENT OF EARNINGS 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-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 12,300
<SECURITIES> 0
<RECEIVABLES> 86,200
<ALLOWANCES> 0
<INVENTORY> 400
<CURRENT-ASSETS> 106,900
<PP&E> 3,062,000
<DEPRECIATION> 1,886,400
<TOTAL-ASSETS> 1,318,000
<CURRENT-LIABILITIES> 138,400
<BONDS> 505,400
<COMMON> 5,100
0
0
<OTHER-SE> 438,500
<TOTAL-LIABILITY-AND-EQUITY> 1,318,000
<SALES> 683,700
<TOTAL-REVENUES> 692,800
<CGS> 0
<TOTAL-COSTS> 560,200
<OTHER-EXPENSES> 29,400
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 26,400
<INCOME-PRETAX> 76,800
<INCOME-TAX> 25,300
<INCOME-CONTINUING> 51,500
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 51,500
<EPS-PRIMARY> 1.51
<EPS-DILUTED> 1.51
