UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-9971
BURLINGTON RESOURCES INC.
(Exact name of registrant as specified in its charter)
Delaware 91-1413284
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
5051 Westheimer, Suite 1400, Houston, Texas 77056
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 624-9500
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.
Class Outstanding
Common Stock, par value $.01 per share,
as of September 30, 1996 124,762,137
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1. Financial Statements
BURLINGTON RESOURCES INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
THIRD QUARTER NINE MONTHS
------------- ------------
1996 1995 1996 1995
------ ------- ------ ------
(Dollars in Millions, Except per Share Amounts)
<S> <C> <C> <C> <C>
Revenues ........................................... $ 344 $ 211 $ 894 $ 636
Costs and Expenses ................................. 254 700 645 1,124
------- ------- ------- -------
Operating Income (Loss) ............................ 90 (489) 249 (488)
Interest Expense ................................... 29 27 85 81
Other Income (Expense) - Net ....................... 1 (1) 2 (1)
------- ------- ------- -------
Income (Loss) Before Income Taxes .................. 62 (517) 166 (570)
Income Tax Expense (Benefit) ....................... 3 (217) 21 (268)
------- ------- ------- -------
Net Income (Loss) .................................. $ 59 $ (300) $ 145 $ (302)
======= ======= ======= =======
Earnings (Loss) per Common Share ................... $ .47 $ (2.36) $ 1.15 $ (2.38)
======= ======= ======= =======
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
- 2 -
<PAGE>
BURLINGTON RESOURCES INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------ -----------
(Dollars in Millions, Except per Share Amount)
<S> <C> <C>
ASSETS
Current Assets
Cash and Short-term Investments ....................... $ 132 $ 20
Accounts Receivable ................................... 199 210
Inventories ........................................... 24 18
Other Current Assets .................................. 19 17
-- --
374 265
=== ===
Oil & Gas Properties (Successful Efforts Method) ........ 5,830 5,870
Other Properties ........................................ 474 499
--- ---
6,304 6,369
Accumulated Depreciation, Depletion and Amortization ... 2,550 2,602
----- -----
Properties - Net ................................. 3,754 3,767
----- -----
Other Assets ............................................ 97 133
-- ---
Total Assets ............................... $ 4,225 $ 4,165
======== =======
LIABILITIES
Current Liabilities
Accounts Payable ..................................... $ 209 $ 214
Taxes Payable ........................................ 47 59
Accrued Interest ..................................... 35 20
Dividends Payable .................................... 17 17
Deferred Revenue - Current ........................... 21 -
Other Current Liabilities ............................ 28 12
-- --
357 322
--- ---
Long-term Debt .......................................... 1,347 1,350
----- -----
Deferred Income Taxes ................................... 96 110
-- ---
Deferred Revenue ........................................ 80 -
--
Other Liabilities and Deferred Credits .................. 108 163
--- ---
Commitments and Contingent Liabilities
STOCKHOLDERS' EQUITY
Common Stock, Par Value $.01 Per Share
(Authorized 325,000,000 shares; Issued 150,000,000 shares) 2 2
Paid-in Capital ......................................... 2,932 2,935
Retained Earnings ....................................... 295 202
--- ---
3,229 3,139
===== =====
Cost of Treasury Stock
(25,237,863 and 23,425,621 shares for 1996 and 1995, respectively) 992 919
Common Stockholders' Equity ............................. 2,237 2,220
----- -----
Total Liabilities and Common Stockholders' Equity ... $ 4,225 $ 4,165
===== =====
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
- 3 -
<PAGE>
BURLINGTON RESOURCES INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS
-----------
1996 1995
---- ----
(Dollars in Millions)
<S> <C> <C>
Cash Flows From Operating Activities
Net Income (Loss) ...................................... $ 145 $ (302)
Adjustments to Reconcile Net Income (Loss)to Net Cash
Provided By Operating Activities
Depreciation, Depletion and Amortization ............. 254 286
Deferred Income Taxes ................................ (14) (302)
Exploration Costs .................................... 41 35
Impairment of Oil and Gas Properties ................. - 490
Working Capital Changes
Accounts Receivable .................................. 11 12
Inventories .......................................... (6) 24
Other Current Assets ................................. (2) (4)
Accounts Payable ..................................... (5) 53
Taxes Payable ........................................ (12) (16)
Accrued Interest ..................................... 15 17
Other Current Liabilities ............................ 37 (1)
Other .................................................. 65 43
-- --
Net Cash Provided By Operating Activities ......... 529 335
--- ---
Cash Flows From Investing Activities
Additions to Properties ................................ (427) (446)
Proceeds from Sales and Other .......................... 175 215
--- ---
Net Cash Used In Investing Activities ............. (252) (231)
---- ----
Cash Flows From Financing Activities
Proceeds from Long-term Financing ...................... 150 150
Reduction in Long-term Debt ............................ (152) (180)
Dividends Paid ......................................... (52) (52)
Common Stock Purchases ................................. (98) (3)
Other .................................................. (13) (19)
--- ---
Net Cash Used In Financing Activities ............. (165) (104)
---- ----
Increase in Cash and Short-term Investments .............. 112 -
Cash and Short-term Investments
Beginning of Year ...................................... 20 20
-- --
End of Period .......................................... $ 132 $ 20
====== ======
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
- 4 -
<PAGE>
BURLINGTON RESOURCES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF PRESENTATION
The 1995 Annual Report on Form 10-K of Burlington Resources Inc. (the
"Company") includes certain definitions and a summary of significant accounting
policies and should be read in conjunction with this Quarterly Report on Form
10-Q ("Quarterly Report"). The financial statements for the periods presented
herein are unaudited, condensed and do not contain all information required by
generally accepted accounting principles to be included in a full set of
financial statements. In the opinion of management, all material adjustments
necessary to present fairly the results of operations have been included. All
such adjustments are of a normal, recurring nature. The results of operations
for any interim period are not necessarily indicative of the results of
operations for the entire year.
Earnings (loss) per common share is based on the weighted average number of
common shares outstanding during the year. The weighted average number of common
shares outstanding was 126 million and 127 million for the first nine months of
1996 and 1995, respectively.
2. DIVESTITURE PROGRAM AND REORGANIZATION
On July 11, 1996, the Company announced it will accelerate its on-going
divestiture program. The Company sold over 9,500 wells from January 1, 1994 to
September 30, 1996, including approximately 4,000 wells sold during 1996. By
July 31, 1997, the Company expects to sell its interest in approximately 27,000
additional wells, with a net book value of approximately $400 million, thus
reducing its pre-1994 well count over 50 percent. The production related to the
27,000 wells represents about 12 percent of the Company's produced volumes as of
September 30, 1996.
This accelerated divestiture program allowed the Company to reorganize and
reduce the number of its operating divisions from five to three. The accelerated
divestiture program and reorganization is expected to result in more than a 20
percent reduction in the Company's 1995 level of production expenses per MCFE.
It will also result in a reduction of approximately 425 employees or 20 percent
of total employees and a reduction of over 10 percent in corporate
administrative expenses per MCFE. All levels of personnel within the Company
were included in the employee reduction. As a result of the divestiture program
and reorganization, during the third quarter of 1996, the Company recorded a
pretax charge of approximately $30 million for severance and other related exit
costs. As of October 31, 1996, 332 employees have been terminated and
approximately $8 million of accrued unpaid benefits remain on the consolidated
balance sheet. The Company expects that substantially all benefits will be paid
by July 31, 1997.
- 5 -
<PAGE>
3. SALE OF COAL SEAM GAS WELLS
In September 1996, the Company received cash proceeds of $108 million for a
transaction in which it conveyed a working interest in certain coal seam gas
wells and retained a volumetric production payment. The cash proceeds
represented a prepaid premium related to an obligation which is based on the
delivery of gas from the wells through December 31, 2002. The prepaid premium
was recorded as deferred revenue and is being amortized into revenues as the gas
is produced. Based on a projected production profile, approximately $13 million
of the deferred revenue is expected to be recognized in 1996 of which $6 million
was included in the third quarter.
4. COMMITMENTS AND CONTINGENT LIABILITIES
On November 12, 1996, the 270th Judicial District Court of Harris County,
Texas entered a judgment of final approval of a settlement in the previously
reported lawsuit styled Caroline Altheide, et al. v. Meridian Oil Inc., et al.
The judgment is subject to appeal for 30 days after entry.
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Financial Condition and Liquidity
The total long-term debt to capital (total long-term debt and stockholders'
equity) ratio at September 30, 1996 and December 31, 1995 was 38 percent. In
February 1996, the Company issued $150 million of 6.875% Debentures due February
15, 2026. The net proceeds were used for general corporate purposes, including
acquisition of oil and gas properties, repayment of commercial paper, capital
expenditures and repurchases of the Company's common stock.
The Company's credit facilities are comprised of a $600 million revolving
credit agreement that expires in July 2001 and a $300 million revolving credit
agreement that expires in July 1997. The $300 million revolving credit agreement
is renewable annually by mutual consent and was renewed in July 1996. As of
September 30, 1996, there were no borrowings outstanding under the credit
facilities. The Company also has the capacity to issue $200 million of debt
securities under a shelf registration statement filed with the Securities and
Exchange Commission.
During the first nine months of 1996, the Company repurchased approximately
2.4 million shares of its common stock for $98 million. Since December 1988, the
Company repurchased approximately 30 million shares under three 10 million share
repurchase
- 6 -
<PAGE>
authorizations. On July 10, 1996, the Company's Board of Directors authorized
the purchase of an additional 10 million shares in the open market from time to
time depending on market conditions.
During the first nine months of 1996, the Company generated approximately
$270 million in proceeds from the prepaid premium and property divestitures, as
discussed below. The proceeds will be used primarily to fund the Company's
expanded exploration program and continued share repurchases.
Net cash provided by operating activities for the first nine months of 1996
was $529 million compared to $335 million in 1995. The increase was primarily
due to significantly higher operating income and $108 million in proceeds
received from a prepaid premium, partially offset by other changes in working
capital. The prepaid premium is related to an obligation which is based on the
delivery of gas from certain coal seam wells through December 31, 2002. Net cash
provided by operating activities in 1995 included the sale of a receivable
related to a claim resulting from the breach of a take-or-pay gas contract and
the sale of gas-in-storage inventory for approximately $39 million and $20
million, respectively.
The Company continues to divest non-strategic properties to maintain its
high quality asset base. During the first nine months of 1996, the Company
divested its interest in approximately 4,000 wells and related facilities and
other oil and gas properties. Proceeds received in 1996 from these divestitures
are approximately $162 million. On July 11, 1996, the Company announced it will
accelerate this on-going divestiture program.
The Company is involved in certain environmental proceedings and other
related matters. Although it is possible that new information or future
developments could require the Company to reassess its potential exposure
related to these matters, the Company believes, based upon available
information, the resolution of these issues will not have a materially adverse
effect on the consolidated financial position or results of operations of the
Company.
Capital Expenditures
Capital expenditures for the first nine months of 1996 totaled $427 million
compared to $446 million in 1995. Capital expenditures are currently projected
to be approximately $550 million for all of 1996 and are expected to be
primarily for the development and exploration of oil and gas properties, reserve
acquisitions, and plant and pipeline expenditures. Capital expenditures will be
funded from internal cash flow supplemented, if needed, by external financing.
Dividends
On October 9, 1996, the Board of Directors declared a common stock
quarterly dividend of $.1375 per share, payable January 2, 1997.
Results of Operations - Third Quarter 1996 Compared to Third Quarter 1995
The Company reported net income of $59 million or $.47 per share for the
third quarter of 1996 compared to a net loss of $300 million or $2.36 per share
in 1995. Operating income
- 7 -
<PAGE>
for the third quarter of 1996 was $90 million compared to an operating loss of
$489 million in 1995.
Revenues were $344 million for the third quarter of 1996 compared to $211
million in 1995. Natural gas sales prices improved 67 percent to $1.94 per MCF
and gas sales volumes improved 6 percent to 1,253 MMCF per day which increased
revenues $90 million and $8 million, respectively. Average oil sales prices
improved 27 percent to $21.25 per barrel and oil sales volumes improved 10
percent to 52.9 MBbls per day which increased revenues $22 million and $7
million, respectively. Gas and oil sales volumes increased primarily due to
continued development of the Company's oil and gas properties and producing
property acquisitions.
Costs and expenses were $254 million for the third quarter of 1996 compared
to $700 million in 1995. The third quarter of 1995 included a $490 million
non-cash charge related to the impairment of oil and gas properties which
resulted from the Company's adoption of SFAS No. 121, effective September 30,
1995. Excluding the $490 million non-cash charge, costs and expenses for the
third quarter of 1996 increased $44 million compared to the same period last
year. The increase was primarily due to a $30 million reorganization charge for
severance and other related exit costs and a $13 million increase in production
and processing expenses resulting from a 7 percent increase in 1996 production
levels.
The effective income tax rate was an expense of 4 percent for the third
quarter of 1996 compared to a benefit of 42 percent in 1995. The increased tax
expense in 1996 is principally a result of higher pretax income. The 1995
beneficial tax rate is due to a 1995 pretax loss and the effect of
non-conventional fuel tax credits.
Results of Operations - Nine Months 1996 Compared to Nine Months 1995
The Company reported net income of $145 million or $1.15 per share for the
first nine months of 1996 compared to a net loss of $302 million or $2.38 per
share in 1995. Operating income for the first nine months of 1996 was $249
million compared to an operating loss of $488 million in 1995.
Revenues were $894 million for the first nine months of 1996 compared to
$636 million in 1995. Average natural gas sales prices improved 46 percent to
$1.75 per MCF and natural gas sales volumes improved 4 percent to 1,209 MMCF per
day which increased revenues $183 million and $18 million, respectively. Average
oil sales prices improved 19 percent to $19.88 per barrel and oil sales volumes
improved 6 percent to 50.5 MBbls per day which increased revenues $44 million
and $13 million, respectively. Gas and oil sales volumes increased primarily due
to continued development of the Company's oil and gas properties and producing
property acquisitions.
Costs and expenses were $645 million for the first nine months of 1996
compared to $1,124 million in 1995. The first nine months of 1995 included a
$490 million non-cash charge related to the impairment of oil and gas properties
which resulted from the Company's adoption of SFAS No. 121, effective September
30, 1995. Excluding the $490 million non-cash charge, costs and expenses for the
first nine months of 1996 increased $11 million compared to the same period last
year. The increase was primarily due to a $30 million reorganization charge for
severance and other related exit costs, a $16 million increase in production and
processing
- 8 -
<PAGE>
expenses resulting from a 5 percent increase in 1996 production levels and a $6
million increase in exploration costs. These increases were partially offset by
lower depreciation, depletion and amortization which decreased $30 million
primarily due to the adoption of SFAS No. 121 and lower general and
administrative expenses which decreased $9 million.
Interest expense was $85 million for the first nine months of 1996 compared
to $81 million in 1995 due to higher interest rates.
The effective income tax rate was an expense of 12 percent for the first
nine months of 1996 compared to a benefit of 47 percent in 1995. The increased
tax expense in 1996 is a result of higher pretax income and a decline in
non-conventional fuel tax credits earned. The 1995 beneficial tax rate is due to
a 1995 pretax loss and the effect of non-conventional fuel tax credits.
Other Matters
In September 1996, the Company received cash proceeds of $108 million for a
transaction in which it conveyed a working interest in certain coal seam gas
wells and retained a volumetric production payment. The cash proceeds
represented a prepaid premium related to an obligation which is based on the
delivery of gas from the wells through December 31, 2002. The prepaid premium
was recorded as deferred revenue and is being amortized into revenues as the gas
is produced. Based on a projected production profile, approximately $13 million
of the deferred revenue is expected to be recognized in 1996 of which $6 million
was included in the third quarter.
On July 11, 1996, the Company announced it will accelerate its on-going
divestiture program. The Company sold over 9,500 wells from January 1, 1994 to
September 30, 1996, including approximately 4,000 wells sold during 1996. By
July 31, 1997, the Company expects to sell its interest in approximately 27,000
additional wells, with a net book value of approximately $400 million, thus
reducing its pre-1994 well count over 50 percent. The production related to the
27,000 wells represents about 12 percent of the Company's produced volumes as of
September 30, 1996.
This accelerated divestiture program allowed the Company to reorganize and
reduce the number of its operating divisions from five to three. The accelerated
divestiture program and reorganization is expected to result in more than a 20
percent reduction in the Company's 1995 level of production expenses per MCFE.
It will also result in a reduction of approximately 425 employees or 20 percent
of total employees and a reduction of over 10 percent in corporate
administrative expenses per MCFE. All levels of personnel within the Company
were included in the employee reduction. As a result of the divestiture program
and reorganization, during the third quarter of 1996, the Company recorded a
pretax charge of approximately $30 million for severance and other related exit
costs. As of October 31, 1996, 332 employees have been terminated and
approximately $8 million of accrued unpaid benefits remain on the consolidated
balance sheet. The Company expects that substantially all benefits will be paid
by July 31, 1997.
- 9 -
<PAGE>
Forward-looking Statements
This Quarterly Report contains projections and other forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of
1934. These projections and statements reflect the Company's current views with
respect to future events and financial performance. No assurances can be given,
however, that these events will occur or that these projections will be achieved
and actual results could differ materially from those projected as a result of
certain factors. A discussion of these factors is included in reports previously
filed with the Securities and Exchange Commission.
- 10 -
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings
See Note 4 of Notes to Consolidated Financial Statements.
ITEM 6. Exhibits and Reports on Form 8-K
A. Exhibits
The following exhibits are filed as part of this report.
Exhibit Nature of Exhibit Page
4.1 The Company and its subsidiaries either *
have filed with the Securities and Exchange
Commission or upon request will furnish
a copy of any instrument with respect to
long-term debt of the Company.
11.1 Earnings(Loss)Per Share 13
12.1 Ratio of Earnings to Fixed Charges 14
27.1 Financial Data Schedule **
* Exhibit incorporated by reference.
** Exhibit required only for filings made electronically using the Securities
and Exchange Commission's EDGAR System.
B. Reports on Form 8-K
The Company filed a Form 8-K dated July 25, 1996, which included
as an exhibit a Press Release dated July 11, 1996 announcing
an accelerated divestiture program and reorganization and the
authorization to repurchase an additional 10 million shares of
common stock.
Items 2, 3, 4, and 5 of Part II are not applicable and have been omitted.
- 11 -
<PAGE>
Pursuant to the requirements of Section 13 or 15(d) 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.
BURLINGTON RESOURCES INC.
(Registrant)
By /s/ John E. Hagale
John E. Hagale
Executive Vice President and
Chief Financial Officer
By /s/ Hays R. Warden
Hays R. Warden
Senior Vice President and Controller,
and Chief Accounting Officer
Date: November 14, 1996
- 12 -
BURLINGTON RESOURCES INC.
EARNINGS (LOSS) PER SHARE
EXHIBIT 11.1
(UNAUDITED)
<TABLE>
<CAPTION>
THIRD QUARTER
1996 1995
--------------------------- ---------------------------
Earnings Shares Loss Shares
--------------------------- ---------------------------
(Dollars in Millions, Except per Share Amounts)
<S> <C> <C> <C> <C>
Primary earnings (loss) per common share
Net earnings (loss) available for common stock and
weighted average number of common
shares outstanding $ 59 125,230,379 $ (300) 126,544,811
Stock options assumed exercised - net - 497,096 - 500,225
---------- ----------- ---------- -----------
Total net earnings (loss) and primary common shares $ 59 125,727,475 $ (300) 127,045,036
========== =========== ========== ===========
Primary earnings (loss) per common share $ .47 $ (2.36)
========== ==========
Fully diluted earnings (loss) per common share
Net earnings (loss) available for common stock and
weighted average number of common
shares outstanding $ 59 125,230,379 $ (300) 126,544,811
Stock options assumed exercised - net - 701,850 - 534,585
---------- ----------- ---------- -----------
Total net earnings (loss) and fully diluted common shares $ 59 125,932,229 $ (300) 127,079,396
========== =========== ========== ===========
Fully diluted earnings (loss) per common share $ .47 $ (2.36)
========== ==========
</TABLE>
<TABLE>
<CAPTION>
NINE MONTHS
1996 1995
--------------------------- ---------------------------
Earnings Shares Loss Shares
--------------------------- ---------------------------
(Dollars in Millions, Except per Share Amounts)
<S> <C> <C> <C> <C>
Primary earnings (loss) per common share
Net earnings (loss) available for common stock and
weighted average number of common
shares outstanding $ 145 125,819,192 $ (302) 126,552,172
Stock options assumed exercised - net - 516,514 - 496,903
---------- ----------- ---------- -----------
Total net earnings (loss) and primary common shares $ 145 126,335,706 $ (302) 127,049,075
========== =========== ========== ===========
Primary earnings (loss) per common share $ 1.15 $ (2.38)
========== ==========
Fully diluted earnings (loss) per common share
Net earnings (loss) available for common stock and
weighted average number of common
shares outstanding $ 145 125,819,192 $ (302) 126,552,172
Stock options assumed exercised - net - 712,835 - 599,903
---------- ----------- ---------- -----------
Total net earnings (loss) and fully diluted common shares $ 145 126,532,027 $ (302) 127,152,075
========== =========== ========== ===========
Fully diluted earnings (loss) per common share $ 1.15 $ (2.38)
========== ==========
</TABLE>
-13-
BURLINGTON RESOURCES INC.
RATIO OF EARNINGS TO FIXED CHARGES
EXHIBIT 12.1
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
--------------------
1996 1995
-------- -------
(Dollars in Millions,
Except Ratio Amounts)
<S> <C> <C>
Earnings
Income (Loss) Before Income Taxes ......................... $166 $(570)
Add
Interest and fixed charges ............................. 85 81
Portion of rent under long-term operating
leases representative of an interest factor ......... 4 4
---- ----
Total Earnings Available for Fixed Charges ................ $255 $(485)
==== ====
Fixed Charges
Interest and fixed charges ................................ $ 85 $ 81
Portion of rent under long-term operating
leases representative of an interest factor ............ 4 4
Capitalized interest ...................................... 2 2
---- ----
Total Fixed Charges ....................................... $ 91 $ 87
==== ====
Ratio of Earnings to Fixed Charges (1) ....................... 2.80 x -
==== ====
</TABLE>
(1) Earnings Available for Fixed Charges for 1995 are inadequate to cover 1995
Fixed Charges by approximately $572 million. Excluding the non-cash charge
related to SFAS No. 121, Earnings Available for Fixed Charges for 1995 would
have been inadequate to cover 1995 Fixed Charges by approximately $82
million.
-14-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE BURLINGTON
RESOURCES INC. CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 1996 AND THE
RELATED CONSOLIDATED STATEMENT OF INCOME FOR THE NINE MONTH PERIOD ENDED
SEPTEMBER 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 132
<SECURITIES> 0
<RECEIVABLES> 199
<ALLOWANCES> 0
<INVENTORY> 24
<CURRENT-ASSETS> 374
<PP&E> 6304
<DEPRECIATION> 2550
<TOTAL-ASSETS> 4225
<CURRENT-LIABILITIES> 357
<BONDS> 0
0
0
<COMMON> 2
<OTHER-SE> 2235
<TOTAL-LIABILITY-AND-EQUITY> 4225
<SALES> 894
<TOTAL-REVENUES> 894
<CGS> 645
<TOTAL-COSTS> 645
<OTHER-EXPENSES> (2)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 85
<INCOME-PRETAX> 166
<INCOME-TAX> 21
<INCOME-CONTINUING> 145
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 145
<EPS-PRIMARY> 1.15
<EPS-DILUTED> 1.15
</TABLE>
