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 MARCH 31, 1997
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 May 1, 1997
CAPITAL STOCK, $.15 PAR VALUE 34,271,253 SHARES
<PAGE>
<PAGE>
THE LOUISIANA LAND AND EXPLORATION COMPANY
INDEX
Page
Number
_________________________________________________________________
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements:
(The March 31, 1997 and 1996 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 - March 31, 1997 and
December 31, 1996............................. 3
Consolidated Statements of Earnings - three months
ended March 31, 1997 and 1996................. 4
Consolidated Statements of Cash Flows - three months
ended March 31, 1997 and 1996................. 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
<PAGE>
<PAGE>
<TABLE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements.
THE LOUISIANA LAND AND EXPLORATION COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<CAPTION)
(Millions of dollars)
March 31, December 31,
ASSETS 1997 1996
_____________________________________________________________________________________
<S> <C> <C>
CURRENT ASSETS:
Cash, including cash equivalents (March 31,
1997-$3.1; December 31, 1996-$1.2) $ 14.9 9.0
Accounts and notes receivable, principally trade 109.2 150.7
Income taxes receivable .5 -
Prepaid expenses 11.2 10.7
Deferred income taxes .7 .7
_____________________________________________________________________________________
TOTAL CURRENT ASSETS 136.5 171.1
_____________________________________________________________________________________
Investments in affiliates 12.0 8.1
Property, plant and equipment 3,113.7 3,100.6
Less accumulated depletion, depreciation and amortization (1,969.8) (1,940.9)
_____________________________________________________________________________________
NET PROPERTY, PLANT AND EQUIPMENT 1,143.9 1,159.7
_____________________________________________________________________________________
Other assets 25.4 25.9
_____________________________________________________________________________________
$ 1,317.8 1,364.8
_____________________________________________________________________________________
LIABILITIES AND STOCKHOLDERS' EQUITY
_____________________________________________________________________________________
CURRENT LIABILITIES:
Accounts payable and accrued expenses 143.2 138.9
Income taxes payable 14.8 9.4
_____________________________________________________________________________________
TOTAL CURRENT LIABILITIES 158.0 148.3
_____________________________________________________________________________________
Deferred income taxes 78.6 78.4
Long-term debt 427.9 505.7
Other liabilities 158.1 157.8
_____________________________________________________________________________________
STOCKHOLDERS' EQUITY:
Capital stock 5.1 5.1
Additional paid-in capital 46.0 44.6
Retained earnings 444.1 424.9
_____________________________________________________________________________________
TOTAL STOCKHOLDERS' EQUITY 495.2 474.6
_____________________________________________________________________________________
$ 1,317.8 1,364.8
_____________________________________________________________________________________
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
THE LOUISIANA LAND AND EXPLORATION COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
(Millions, except per share data)
<CAPTION>
Three months ended
March 31,
1997 1996
_____________________________________________________________________________________
<S> <C> <C>
REVENUES:
Oil and gas $170.8 147.7
Refined products - 114.8
Gain on sale of petroleum assets .4 -
_____________________________________________________________________________________
171.2 262.5
_____________________________________________________________________________________
COSTS AND EXPENSES:
Lease operating and facility expenses 31.1 30.0
Refinery cost of sales and operating expenses - 114.4
Dry holes and exploratory charges 46.3 21.5
Depletion, depreciation and amortization 43.7 43.5
Taxes, other than on earnings 6.3 6.2
General, administrative and other expenses 9.3 8.9
_____________________________________________________________________________________
136.7 224.5
_____________________________________________________________________________________
34.5 38.0
OTHER INCOME (EXPENSE):
Interest and debt expenses (7.9) (9.2)
Other income (expense), net 6.5 3.0
_____________________________________________________________________________________
Earnings before income taxes 33.1 31.8
Income tax expense 11.9 11.2
_____________________________________________________________________________________
NET EARNINGS $ 21.2 20.6
_____________________________________________________________________________________
EARNINGS PER SHARE $ 0.62 0.61
_____________________________________________________________________________________
AVERAGE SHARES 34.5 33.7
_____________________________________________________________________________________
CASH DIVIDENDS PER SHARE $ 0.06 0.06
_____________________________________________________________________________________
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
THE LOUISIANA LAND AND EXPLORATION COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Millions of dollars)
<CAPTION>
Three months ended
March 31,
1997 1996
_____________________________________________________________________________________
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 21.2 20.6
Adjustments to reconcile to cash flows
from operations:
Depletion, depreciation and amortization 43.7 43.5
Deferred income taxes .2 6.8
Dry holes and impairment charges 33.4 13.3
Gain on sales of petroleum assets (.4) -
Other (3.7) .4
_____________________________________________________________________________________
94.4 84.6
Changes in operating assets and liabilities:
Net (increase) decrease in receivables 41.8 (3.4)
Net decrease in inventories - 3.7
Net (increase) decrease in prepaid items (.5) 4.3
Net increase (decrease) in payables 15.5 (7.0)
Other 1.2 (6.3)
_____________________________________________________________________________________
NET CASH FLOWS FROM OPERATING ACTIVITIES 152.4 75.9
_____________________________________________________________________________________
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (67.2) (43.4)
Proceeds from asset sales 1.7 .1
Other (1.7) 3.3
_____________________________________________________________________________________
NET CASH FLOWS FROM INVESTING ACTIVITIES (67.2) (40.0)
_____________________________________________________________________________________
CASH FLOWS FROM FINANCING ACTIVITIES:
Additions to long-term debt - 42.9
Repayments of long-term debt (77.8) (92.0)
Advances against cash surrender value - 9.6
Dividends (2.0) (2.0)
Repayment of loans to ESOP - .6
Other .5 3.9
_____________________________________________________________________________________
NET CASH FLOWS FROM FINANCING ACTIVITIES (79.3) (37.0)
_____________________________________________________________________________________
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 5.9 (1.1)
_____________________________________________________________________________________
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<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 March 31, 1997, and the results of operations and cash
flows for the three-month periods ended March 31, 1997 and 1996.
Certain amounts have been reclassified to conform with the current
period's presentation.
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
approximately $33 million. The following table sets forth the
refinery operating results for the period indicated.
<TABLE>
<CAPTION>
(Unaudited)
Three months ended
March 31,
(Millions of dollars) 1996
____________________________________________________________________________________
<S> <C>
REFINING OPERATIONS
Refining Operating Profit (Loss):
Revenues:
Refined products* $121.1
Other .1
____________________________________________________________________________________
121.2
____________________________________________________________________________________
Cost and expenses:
Cost of sales* 109.2
Operating expenses 11.5
Depreciation .4
Taxes, other than income .4
____________________________________________________________________________________
121.5
____________________________________________________________________________________
$ (.3)
____________________________________________________________________________________
*Before the elimination of intercompany
transfers to the Company's refinery $ 6.3
____________________________________________________________________________________
</TABLE>
3. For the three months ended March 31, 1997 and 1996, interest costs
incurred were $9.5 million and $12.6 million, respectively, of which
$1.6 million and $3.4 million, respectively, were capitalized as part
of the cost of property, plant and equipment.
4. As prescribed by Accounting Principles Board Opinion No. 15, "Earnings
Per Share, ("Opinion No. 15"), 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.
<PAGE>
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards Statement No. 128,
"Earnings Per Share" ("SFAS No. 128"). SFAS No. 128 supersedes Opinion
No. 15, will be effective for the Company's year ended December 31,
1997, and cannot be adopted earlier. After adoption, all prior period
earnings per share must be restated to conform with SFAS No. 128. Due
to the insignificant number of potentially dilutive securities (stock
options) outstanding, SFAS No. 128 will not have a material impact on
the Company's earnings per share.
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,
1996.
Accordingly, the following unaudited summarized consolidated income
statement information for MaraLou and its consolidated subsidiary,
CLAM, for the three-month periods ended March 31, 1997 and 1996 are
presented in accordance with Regulation S-X, Rule 10-01(b).
<TABLE>
<CAPTION>
(Unaudited)
Three months ended
March 31,
1997 1996
_________________________________________________________________________________
<S> <C> <C>
Gross revenues $ 28.0 31.7
_________________________________________________________________________________
Operating profit 16.6 16.9
_________________________________________________________________________________
Net earnings 6.5 8.0
_________________________________________________________________________________
</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 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 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 March 31, 1997, and the related
consolidated statements of earnings and cash flows for the three-month
periods ended March 31, 1997 and 1996. 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, 1996, 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 7, 1997, 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,
1996, 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
May 9, 1997
<PAGE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995
Statements, other than historical facts, contained in this Quarterly
Report on Form 10-Q, including statements of estimated oil and gas
production and reserves, drilling plans, future cash flows, anticipated
capital expenditures and Management's strategies, plans and objectives, are
"forward looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Although the Company believes that its
forward looking statements are based on reasonable assumptions, it cautions
that such statements are subject to a wide range of risks and uncertainties
incident to the exploration for, acquisition, development and marketing of
oil and gas, and it can give no assurance that its estimates and
expectations will be realized. Important factors that could cause actual
results to differ materially form the forward looking statements include,
but are not limited to, changes in production volumes, worldwide demand,
and commodity prices for petroleum natural resources; the timing and extent
of the Company's success in discovering, acquiring, developing and
producing oil and gas reserves; risks incident to the drilling and
operation of oil and gas wells; future production and development costs;
the effect of existing and future laws, governmental regulations and the
political and economic climate of the United States and foreign countries
in which the Company operates; the effect of hedging activities; and
conditions in the capital markets. Other risk factors are discussed
elsewhere in this Form 10-Q, including those risk factors described in Note
6 of "Notes to Consolidated Financial Statements."
REVIEW OF OPERATIONS
First quarter 1997 net earnings totaled $21.2 million, up from the
$20.6 million earned in the first quarter of 1996. The improvement in net
earnings resulted from a 16% increase in oil and gas revenues due to higher
natural gas volumes and improved product prices.
OIL AND GAS OPERATIONS
Revenues from the Company's oil and gas operations were up $23 million
from the first quarter of 1996. Liquids revenues were up $11 million due
to the effect of higher worldwide crude oil prices ($10 million). Natural
gas revenues were up $12 million as a result of higher deliveries ($11
million) and prices ($1 million).
Crude oil volumes were 1100 barrels per day (BPD) lower than first
quarter 1996 volumes due to production declines at North Sea and other
foreign properties, which more than offset higher domestic production.
North Sea operations were down 1900 BPD as temporary mechanical problems
<PAGE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations. (Continued)
at the Toni Field and natural declines at other North Sea properties more
than offset new production from the Thelma Field. Other foreign crude
volumes declined 700 BPD due to natural declines at the KAKAP concession,
offshore Indonesia. New wells onstream at south Louisiana and Gulf of
Mexico properties contributed to higher domestic volumes which were up 1500
BPD.
Natural gas deliveries were up 35 million cubic feet per day from the
prior year first quarter due to higher domestic production. Domestic
deliveries were up due to new wells onstream in the Gulf of Mexico and
south Louisiana. The higher domestic deliveries were partially offset by
the effects of natural declines at mature producing properties and wells
shut-in for maintenance and repairs. North Sea deliveries remained at the
same level as the prior year period. Partially offsetting the higher
domestic production were lower volumes from the Company's 50%-owned
affiliate, CLAM Petroleum Company.
Lease operating and facility expenses (LOE) were up as higher workover
costs and facilities expenses offset reductions in operating costs and
repair charges. Depletion, depreciation and amortization (DD&A) was up
marginally as a result of the DD&A associated with new wells onstream.
This increase in DD&A was partially offset by natural production declines
on mature producing properties. Dry holes and exploratory charges
increased due to the write-off of unsuccessful exploratory wells and higher
seismic costs incurred. Interest and debt expenses were down from the 1996
quarter primarily as a result of the significant reduction in long-term
debt over the last twelve months.
LIQUIDITY AND CAPITAL RESOURCES
In the first quarter of 1997, the Company generated approximately $152
million in cash from operations which, along with available cash, was used
for capital projects ($67 million), reductions of long-term debt ($78
million) and dividends paid ($2 million).
The Company expects to fund its 1997 expenditures, including capital
and exploration expenditures of approximately $280 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. The Company's expenditures are
continually reviewed, and revised as necessary, based on perceived current
and long-term economic conditions.
The Company's commodity price hedging program was designed to minimize
the price risks associated with future natural gas and crude oil production
and is not used for speculative purposes. 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
<PAGE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations. (Continued)
floor price and outside of specific ranges. At March 31, 1997,
approximately 70 trillion British Thermal Units (BTU) of domestic natural
gas production for the remainder of 1997 were covered by a series of
transactions designed to set an average floor price of $1.81 per million
BTU with the Company's nonparticipation in market price increases above the
floor price limited to $0.18 per million BTU. For 1998, approximately 57
trillion BTU of domestic natural gas were similarly hedged at an average
floor price of $1.79 per million BTU with the Company's nonparticipation
in market price increases above the floor price limited to $0.24 per
million BTU. While these transactions have nominal carrying values, their
fair value, represented by the estimated amount that would be required to
terminate the contracts, were a net benefit of $.2 million for the 1997
hedges and a net benefit of $1.1 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
two million barrels of the Company's worldwide crude oil production for the
remainder of 1997 were similarly hedged at an average floor price of $18.95
per barrel with the Company's nonparticipation in market price increases
above the floor price limited to $1.90 per barrel. These transactions also
have nominal carrying values, but their fair value at March 31, 1997
amounted to a net benefit of $.9 million.
CAPITAL STOCK, DIVIDENDS AND OTHER MARKET DATA
In February 1997, the Company's Board of Directors authorized the
repurchase of up to two million shares of the Company's capital stock. No
shares have been repurchased under the program.
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.
<PAGE>
<PAGE>
<TABLE>
THE LOUISIANA LAND AND EXPLORATION COMPANY
PETROLEUM SEGMENT INFORMATION
(Millions of dollars)
<CAPTION>
Three months ended
March 31,
1997 1996
_____________________________________________________________________________________
<S> <C> <C>
Sales to unaffiliated customers:
Domestic1 $127.0 218.9
North Sea 38.4 37.1
Other foreign 5.8 6.5
_____________________________________________________________________________________
Total revenues $171.2 262.5
_____________________________________________________________________________________
Earnings (loss) before income taxes:
Operating profit (loss):
Domestic1 34.1 41.7
North Sea 16.7 12.1
Other foreign (4.6) (4.3)
_____________________________________________________________________________________
46.2 49.5
Other income (expense), net (13.1) (17.7)
_____________________________________________________________________________________
Earnings before income taxes $ 33.1 31.8
_____________________________________________________________________________________
Capital expenditures:
Exploration:
Domestic 32.9 17.9
North Sea 1.0 -
Other foreign 4.6 2.1
_____________________________________________________________________________________
38.5 20.0
_____________________________________________________________________________________
Development:
Domestic 13.3 10.2
North Sea 4.0 6.0
Other foreign 3.5 2.4
_____________________________________________________________________________________
20.8 18.6
_____________________________________________________________________________________
59.3 38.6
Capitalized interest 1.6 3.4
Other .6 .8
_____________________________________________________________________________________
$ 61.5 42.8
_____________________________________________________________________________________
1 The 1996 period includes the operations of the Company's refinery which was sold in
July 1996. See Note 2 of "Notes to Consolidated Financial Statements."
</TABLE>
<PAGE>
<PAGE>
<TABLE>
THE LOUISIANA LAND AND EXPLORATION COMPANY
OPERATING DATA
<CAPTION>
Three months ended
March 31,
1997 1996
_____________________________________________________________________________________
<S> <C> <C>
OIL AND GAS OPERATIONS1
CRUDE AND CONDENSATE2
Production (thousands of barrels per day):
Domestic 21.4 19.9
North Sea 14.4 16.3
Other foreign 3.3 4.0
_____________________________________________________________________________________
39.1 40.2
_____________________________________________________________________________________
Average price received (per barrel):
Domestic $22.37 19.06
North Sea 21.38 18.76
Other foreign 19.66 17.68
Consolidated 21.78 18.80
_____________________________________________________________________________________
PLANT PRODUCTS
Production (thousands of barrels per day):
Domestic 2.7 1.9
North Sea .9 .9
_____________________________________________________________________________________
3.6 2.8
_____________________________________________________________________________________
Average price received (per barrel):
Domestic $18.99 12.35
North Sea 23.79 16.56
Consolidated 20.24 13.71
_____________________________________________________________________________________
NATURAL GAS
Production (millions of cubic feet per day):
Domestic 301.0 255.2
North Sea 37.4 37.9
CLAM Petroleum Company 49.3 60.0
_____________________________________________________________________________________
387.7 353.1
_____________________________________________________________________________________
Average price received (per MCF):
Domestic $ 2.85 2.87
North Sea 2.71 2.22
CLAM Petroleum Company 2.82 2.83
Consolidated 2.84 2.80
_____________________________________________________________________________________
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
March 31,
(Millions of dollars) 1997 1996
____________________________________________________________________________________
<S> <C> <C>
GROSS WELLS DRILLED
Working Interest
Exploratory:
Oil 1 2
Gas 2 2
Dry 2 3
____________________________________________________________________________________
5 7
____________________________________________________________________________________
Development:
Oil 1 5
Gas 1 1
Dry 1 -
____________________________________________________________________________________
3 6
____________________________________________________________________________________
Total working interest 8 13
Royalty Interest 5 2
____________________________________________________________________________________
Total wells 13 15
____________________________________________________________________________________
NET WELLS DRILLED
Exploratory:
Oil .5 .7
Gas .8 1.0
Dry .9 .9
____________________________________________________________________________________
2.2 2.6
____________________________________________________________________________________
Development:
Oil .9 .6
Gas .7 .5
Dry .5 -
____________________________________________________________________________________
2.1 1.1
____________________________________________________________________________________
Total net wells 4.3 3.7
____________________________________________________________________________________
</TABLE>
<PAGE>
<PAGE>
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
At the Annual Meeting of Stockholders held on May 8, 1997, The
Louisiana Land and Exploration Company 1997 Stock Option Plan was
approved by a stockholder vote of: For - 19,637,112; Against -
2,962,078.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits:
Exhibit 27 - Financial Data Schedules:
Quarter ended March 31, 1997
Quarter ended March 31, 1996 (restated)
(b) Reports on Form 8-K:
NONE
SIGNATURE
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/ J. N. Wood
___________________________________________
J. N. WOOD
VICE PRESIDENT AND CONTROLLER
(PRINCIPAL ACCOUNTING OFFICER)
Dated: May 12, 1997
<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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 14,900
<SECURITIES> 0
<RECEIVABLES> 109,700
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 136,500
<PP&E> 3,113,700
<DEPRECIATION> 1,969,800
<TOTAL-ASSETS> 1,317,800
<CURRENT-LIABILITIES> 158,000
<BONDS> 427,900
<COMMON> 5,100
0
0
<OTHER-SE> 490,100
<TOTAL-LIABILITY-AND-EQUITY> 1,317,800
<SALES> 171,200
<TOTAL-REVENUES> 171,200
<CGS> 0
<TOTAL-COSTS> 127,400
<OTHER-EXPENSES> 2,800
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7,900
<INCOME-PRETAX> 33,100
<INCOME-TAX> 11,900
<INCOME-CONTINUING> 21,200
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 21,200
<EPS-PRIMARY> .62
<EPS-DILUTED> .62
<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. THIS SCHEDULE HAS BEEN
RESTATED TO CONFORM TO FINANCIAL STATEMENT CLASSIFICATIONS ADOPTED IN
1997.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 9,200
<SECURITIES> 0
<RECEIVABLES> 144,900
<ALLOWANCES> 0
<INVENTORY> 35,000
<CURRENT-ASSETS> 198,600
<PP&E> 3,150,900
<DEPRECIATION> 1,956,200
<TOTAL-ASSETS> 1,447,000
<CURRENT-LIABILITIES> 191,100
<BONDS> 642,500
<COMMON> 5,100
0
0
<OTHER-SE> 392,300
<TOTAL-LIABILITY-AND-EQUITY> 1,447,000
<SALES> 262,500
<TOTAL-REVENUES> 262,500
<CGS> 0
<TOTAL-COSTS> 215,600
<OTHER-EXPENSES> 5,900
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9,200
<INCOME-PRETAX> 31,800
<INCOME-TAX> 11,200
<INCOME-CONTINUING> 20,600
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 20,600
<EPS-PRIMARY> .61
<EPS-DILUTED> .61
