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 June 30, 1997
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, 123,786,512
as of June 30, 1997
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
BURLINGTON RESOURCES INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
SECOND QUARTER SIX MONTHS
------------------ -----------------
1997 1996 1997 1996
------ ------ ------ ------
(In Millions, Except per Share Amounts)
<S> <C> <C> <C> <C>
Revenues ........................... $ 282 $ 295 $ 666 $ 551
Costs and Expenses ................. 209 199 428 392
----- ----- ----- -----
Operating Income ................... 73 96 238 159
Interest Expense ................... 28 28 56 57
Other Income - Net ................. 54 1 53 2
----- ----- ----- -----
Income Before Income Taxes ......... 99 69 235 104
Income Tax Expense ................. 20 21 46 18
----- ----- ----- -----
Net Income ......................... $ 79 $ 48 $ 189 $ 86
===== ===== ===== =====
Earnings per Common Share .......... $ .64 $ .38 $1.52 $ .68
===== ===== ===== =====
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
2
<PAGE>
BURLINGTON RESOURCES INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
------- ------------
(In Millions, Except Share Data)
<S> <C> <C>
ASSETS
Current Assets
Cash and Cash Equivalents ............................................. $ 449 $ 68
Short-term Investments ................................................ 41 -
Accounts Receivable ................................................... 191 338
Inventories ........................................................... 23 18
Other Current Assets .................................................. 21 18
------ ------
725 442
------ ------
Oil & Gas Properties (Successful Efforts Method) ........................ 5,241 5,843
Other Properties ........................................................ 523 485
------ ------
5,764 6,328
Accumulated Depreciation, Depletion and Amortization ................ 2,210 2,548
------ ------
Properties - Net ................................................. 3,554 3,780
------ ------
Other Assets ............................................................ 93 94
------ ------
Total Assets ............................................... $4,372 $4,316
====== ======
LIABILITIES
Current Liabilities
Accounts Payable ..................................................... $ 195 $ 217
Taxes Payable ........................................................ 58 62
Accrued Interest ..................................................... 23 23
Dividends Payable .................................................... 17 17
Deferred Revenue ..................................................... 19 20
Other Current Liabilities ............................................ 2 29
------ ------
314 368
------ ------
Long-term Debt ......................................................... 1,347 1,347
------ ------
Deferred Income Taxes .................................................. 105 85
------ ------
Deferred Revenue ....................................................... 66 75
------ ------
Other Liabilities and Deferred Credits.................................. 102 108
------ ------
Put Options ............................................................ 22 -
------ ------
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.......................................................... 2,911 2,932
Retained Earnings........................................................ 544 388
------ ------
3,457 3,322
Cost of Treasury Stock
(26,213,488 and 25,081,301 Shares for 1997 and 1996, respectively).... 1,041 989
------ ------
Common Stockholders' Equity.............................................. 2,416 2,333
------ ------
Total Liabilities and Common Stockholders' Equity................ $4,372 $4,316
====== ======
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
3
<PAGE>
BURLINGTON RESOURCES INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS
------------------
1997 1996
------- -------
(In Millions)
<S> <C> <C>
Cash Flows From Operating Activities
Net Income .................................................................. $ 189 $ 86
Adjustments to Reconcile Net Income to Net Cash
Provided By Operating Activities
Depreciation, Depletion and Amortization .................................. 180 164
Deferred Income Taxes ..................................................... 20 (19)
Exploration Costs ......................................................... 43 23
Gain on Sales of Oil and Gas Properties ................................... (50) -
Working Capital Changes
Accounts Receivable ....................................................... 147 39
Inventories ............................................................... (5) (12)
Other Current Assets ...................................................... (3) (1)
Accounts Payable .......................................................... (22) 4
Taxes Payable ............................................................. (4) 20
Accrued Interest .......................................................... - 3
Other Current Liabilities ................................................. (28) 22
Other........................................................................ (60) (57)
------- --------
Net Cash Provided By Operating Activities ........................... 407 272
------- --------
Cash Flows From Investing Activities
Additions to Properties ..................................................... (356) (316)
Short-term Investments ...................................................... (41) -
Proceeds from Sales and Other ............................................... 456 119
------- --------
Net Cash Provided By (Used In) Investing Activities ................. 59 (197)
------- --------
Cash Flows From Financing Activities
Proceeds from Long-term Financing ........................................... - 150
Reduction in Long-term Debt ................................................. - (141)
Dividends Paid .............................................................. (34) (35)
Common Stock Purchases ...................................................... (58) (52)
Other ....................................................................... 7 2
------- --------
Net Cash Used In Financing Activities ............................... (85) (76)
------- --------
Increase (Decrease) in Cash and Cash Equivalents .............................. 381 (1)
Cash and Cash Equivalents
Beginning of Year ........................................................... 68 20
--------- --------
End of Period ............................................................... $ 449 $ 19
========= ========
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
4
<PAGE>
BURLINGTON RESOURCES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF PRESENTATION
The 1996 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 per common share is based on the weighted average number of
common shares outstanding during the year including common share equivalents
when dilutive. The weighted average number of common shares outstanding was 125
million and 127 million for the first six months of 1997 and 1996, respectively.
2. SHORT-TERM INVESTMENTS
Short-term investments consist of highly-liquid debt securities with a
maturity of more than three months. The securities are classified as
available-for-sale and are carried at fair value based on quoted market prices.
As of June 30, 1997, the fair value approximates the amortized cost of the
Company's securities. Unrealized gains and losses, net of tax, are included as a
component of stockholders' equity until realized. Realized gains or losses are
based on specific identification of the securities sold.
3. PROPOSED MERGER
On July 17, 1997, the Company and The Louisiana Land and Exploration
Company ("LL&E") announced that they had entered into an Agreement and Plan of
Merger, pursuant to which a newly-formed wholly-owned subsidiary of the Company
will merge into LL&E ("Merger"). As a result of the Merger, LL&E will become a
wholly-owned subsidiary of the Company. The Merger is contingent upon, among
other things, certain regulatory approvals and the approval of each company's
stockholders.
In the Merger, the Company will issue 1.525 shares of its stock for each
outstanding share of LL&E and assume approximately $500 million of LL&E debt.
The Company expects to account for this Merger as a pooling of interests and
also expects it to qualify as a tax-free reorganization. The transaction, valued
at approximately $3 billion based on the Company's closing price of $46.125 on
July 16, 1997, is expected to close in the fourth quarter of 1997.
5
<PAGE>
4. DIVESTITURE PROGRAM AND REORGANIZATION
During the first six months of 1997, the Company completed its
accelerated divestiture program which was announced in July 1996. As planned,
the Company sold approximately 27,000 wells by June 30, 1997. Before closing
adjustments, gross proceeds for 1997 from the sale of oil and gas properties
were approximately $450 million (approximately $418 million, net of closing
adjustments). During the second quarter of 1997, the Company recorded a pretax
gain of approximately $50 million related to the sale of oil and gas properties.
The accelerated divestiture program allowed the Company to reorganize
and resulted in a reduction of approximately 456 employees. As of July 31, 1997,
446 of the employees were terminated and substantially all benefits were paid.
5. COMMITMENTS AND CONTINGENT LIABILITIES
In the previously reported lawsuit styled Caroline Altheide, et al. v.
Meridian Oil Inc. (now known as Burlington Resources Oil & Gas Company), et al.,
the 270th Judicial District Court of Harris County, Texas gave final approval of
the parties' settlement agreement in its Judgment signed on November 12, 1996.
Certain class members purported to perfect an appeal of the Judgment on February
7, 1997. On July 24, 1997, the Fourteenth Court of Appeals dismissed the appeal.
The Company and the Plaintiffs will continue to vigorously defend any further
appeals.
The Company and its subsidiaries are named defendants in numerous
lawsuits and named parties in numerous governmental proceedings arising in the
ordinary course of business. While the outcome of lawsuits and other proceedings
cannot be predicted with certainty, management expects these matters, including
the above-described Altheide litigation, will not have a materially adverse
effect on the consolidated financial position or results of operations of the
Company.
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 June 30, 1997 and December 31, 1996 was 36
percent and 37 percent, respectively.
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 1998. The $300 million revolving
credit agreement is renewable annually by mutual consent and was renewed in July
1997. As of June 30, 1997, there were no borrowings outstanding under the credit
facilities. In April 1997, the Company increased the capacity under its shelf
registration statements from $200 million to $500 million.
6
<PAGE>
During the first six months of 1997, the Company repurchased approximately
1.3 million shares of its common stock for approximately $58 million. Since
December 1988, the Company repurchased approximately 31 million shares under
four 10 million share repurchase authorizations. In conjunction with the
Company's stock repurchase program, the Company sold put options ("options")
during the first quarter of 1997. The options entitle the holders, upon exercise
of the options on the expiration dates, to sell shares of Burlington Resources
common stock to the Company at specified prices. Alternatively, the Company
retains the ability to settle the options in cash. As of June 30, 1997, options
on 500 thousand shares were outstanding with an average strike price of $44.50
per share. An average premium of $2.63 per option was received for the option
sales. The options have various expiration dates between August 1997 and
September 1997. The Company rescinded its stock repurchase program effective
July 16, 1997.
Net cash provided by operating activities for the first six months of
1997 was $407 million compared to $272 million in 1996. The increase was
primarily due to significantly higher operating income.
The Company completed its accelerated divestiture program announced in
July 1996. During the first six months of 1997, the Company divested its
interest in approximately 27,000 wells and related facilities. Before closing
adjustments, gross proceeds for 1997 from the sale of oil and gas properties
were approximately $450 million (approximately $418 million, net of closing
adjustments).
During the second quarter of 1997, the Company invested $41 million in
highly-liquid debt securities with maturities of more than three months. These
short-term investments when combined with cash and cash equivalents equaled $490
million as of June 30, 1997.
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 six months of 1997 totaled $356
million compared to $316 million in 1996. Capital expenditures are currently
projected to be approximately $745 million for all of 1997 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 July 9, 1997, the Board of Directors declared a common stock
quarterly dividend of $.1375 per share, payable October 1, 1997.
7
<PAGE>
Results of Operations - Second Quarter 1997 Compared to Second Quarter 1996
The Company reported net income of $79 million or $.64 per share for
the second quarter of 1997 compared to $48 million or $.38 per share in 1996.
Operating income for the second quarter of 1997 was $73 million compared to $96
million in 1996.
Revenues were $282 million for the second quarter of 1997 compared to
$295 million in 1996. Natural gas sales prices decreased 3 percent to $1.70 per
MCF which decreased revenues $6 million and gas sales volumes improved 5 percent
to 1,249 MMCF per day which increased revenues $9 million. Average oil sales
prices decreased 6 percent to $19.16 per barrel and oil sales volumes decreased
9 percent to 45.8 MBbls per day which decreased revenues $5 million and $9
million, respectively. Gas sales volumes increased primarily due to continued
development of the Company's gas properties partially offset by the sale of gas
properties associated with the divestiture program. Oil sales volumes decreased
primarily due to the sale of oil properties associated with the divestiture
program partially offset by the continued development of oil properties.
Costs and expenses were $209 million for the second quarter of 1997
compared to $199 million in 1996. The increase was primarily due to a $12
million increase in exploration costs, a $7 million increase in depreciation,
depletion and amortization, partially offset by a $7 million decrease in
production and processing expenses and a $2 million decrease in administrative
expenses.
Other income - net was $54 million for the second quarter of 1997
compared to $1 million in 1996 primarily due to the $50 million gain related to
the sale of oil and gas properties associated with the divestiture program.
The effective income tax rate was an expense of 20 percent for the second
quarter of 1997 compared to an expense of 30 percent in 1996. The decreased
effective tax rate in 1997 is primarily a result of higher nonconventional fuel
tax credits, including recognition of additional credits from prior years.
Results of Operations - Six Months 1997 Compared to Six Months 1996
The Company reported net income of $189 million or $1.52 per share for
the first six months of 1997 compared to $86 million or $.68 per share in 1996.
Operating income for the first six months of 1997 was $238 million compared to
$159 million in 1996.
Revenues were $666 million for the first six months of 1997 compared to
$551 million in 1996. Natural gas sales prices improved 22 percent to $2.01 per
MCF and gas sales volumes improved 9 percent to 1,287 MMCF per day which
increased revenues $83 million and $28 million, respectively. Average oil sales
prices improved 6 percent to $20.23 per barrel which increased revenues $10
million and oil sales volumes decreased 1 percent to 48.5 MBbls per day which
decreased revenues $3 million. Gas sales volumes increased primarily due to
continued development of the Company's gas properties partially offset by the
sale of gas properties associated with the divestiture program. Oil sales
volumes decreased primarily due to the sale of oil properties associated with
the divestiture program partially offset by the continued development of oil
properties.
8
<PAGE>
Costs and expenses were $428 million for the first six months of 1997
compared to $392 million in 1996. The increase was primarily due to a $20
million increase in exploration costs, a $17 million increase in depreciation,
depletion and amortization, a $2 million increase in production and processing
expenses and a $2 million decrease in administrative expenses.
Other income - net was $53 million for the first six months of 1997
compared to $2 million in 1996 primarily due to the $50 million gain related to
the sale of oil and gas properties associated with the divestiture program.
The effective income tax rate was an expense of 19 percent for the
first six months of 1997 compared to 17 percent in 1996. The increased effective
tax rate in 1997 is primarily a result of statutory tax on higher pretax income
partially offset by higher nonconventional fuel tax credits, including
recognition of additional credits from prior years.
Other Matters
On July 17, 1997, the Company and The Louisiana Land and Exploration
Company ("LL&E") announced that they had entered into an Agreement and Plan of
Merger, pursuant to which a newly-formed wholly-owned subsidiary of the Company
will merge into LL&E ("Merger"). As a result of the Merger, LL&E will become a
wholly-owned subsidiary of the Company. The Merger is contingent upon, among
other things, certain regulatory approvals and the approval of each company's
stockholders.
In the Merger, the Company will issue 1.525 shares of its stock for each
outstanding share of LL&E and assume approximately $500 million of LL&E debt.
The Company expects to account for this Merger as a pooling of interests and
also expects it to qualify as a tax-free reorganization. The transaction, valued
at approximately $3 billion based on the Company's closing price of $46.125 on
July 16, 1997, is expected to close in the fourth quarter of 1997.
In June 1997, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 130, Reporting
Comprehensive Income, which is effective for fiscal years beginning after
December 15, 1997.
SFAS No. 130 establishes standards for reporting and display of
comprehensive income and its components (revenues, expenses, gains and losses)
in a full set of general-purpose financial statements. It requires (a)
classification of items of other comprehensive income by their nature in a
financial statement and (b) display of the accumulated balance of other
comprehensive income separate from retained earnings and additional paid-in
capital in the equity section of a statement of financial position. The Company
plans to adopt SFAS No. 130 for the quarter ended March 31, 1998.
In June 1997, the FASB also issued SFAS No. 131, Disclosures about
Segments of an Enterprise and Related Information, which is effective for fiscal
years beginning after December 15, 1997.
SFAS No. 131 establishes standards for reporting information about
operating segments in annual financial statements and requires selected
information about operating segments in interim financial reports issued to
shareholders. It also establishes standards for related disclosures about
products and services, geographic areas and major customers. This Statement
supersedes SFAS No. 14, Financial Reporting for Segments of a Business
Enterprise, but retains the requirement to report information about major
customers. The Company plans to adopt SFAS No. 131 for the year ended December
31, 1998.
9
<PAGE>
In February 1997, the FASB issued SFAS No. 128, Earnings per Share,
which is effective for periods ending after December 15, 1997.
SFAS No. 128 establishes standards for computing and presenting
earnings per share ("EPS"). It simplifies the standards for computing EPS and
replaces the presentation of primary EPS with a presentation of basic EPS. Basic
EPS excludes dilution and is computed by dividing income available to common
stockholders by the weighted-average number of common shares outstanding for the
period. Diluted EPS reflects the potential dilution that could occur if
securities or other contracts to issue common stock were exercised or converted
into common stock. SFAS No. 128 also requires dual presentation of basic EPS and
diluted EPS on the face of the income statement for all entities with complex
capital structures. The Company plans to adopt SFAS No. 128 for the year ended
December 31, 1997 and does not expect a material impact on the Company's EPS.
During the first six months of 1997, the Company completed its
accelerated divestiture program which was announced in July 1996. As planned,
the Company sold approximately 27,000 wells by June 30, 1997. Before closing
adjustments, gross proceeds for 1997 from the sale of oil and gas properties
were approximately $450 million (approximately $418 million, net of closing
adjustments). During the second quarter of 1997, the Company recorded a pretax
gain of approximately $50 million related to the sale of oil and gas properties.
The accelerated divestiture program allowed the Company to reorganize
and resulted in a reduction of approximately 456 employees. As of July 31, 1997,
446 of the employees were terminated and substantially all benefits were paid.
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 the Company's 1996
Annual Report on Form 10-K.
10
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings
See Note 5 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 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 no reports on Form 8-K during the second quarter
of 1997.
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, Controller
and Chief Accounting Officer
Date: August 1, 1997
12
BURLINGTON RESOURCES INC.
EARNINGS PER SHARE
EXHIBIT 11.1
(UNAUDITED)
<TABLE>
<CAPTION>
SECOND QUARTER
--------------------------------------------------------------
1997 1996
--------------------------- ----------------------------
Earnings Shares Earnings Shares
--------------------------- ----------------------------
(Dollars in Millions, Except per Share Amounts)
<S> <C> <C> <C> <C>
Primary earnings per common share
Net earnings available for common stock and
weighted average number of common
shares outstanding ....................................... $ 79 124,014,987 $ 48 125,847,741
Stock options assumed exercised - net ....................... - 499,871 - 442,959
----------- ----------- ----------- -----------
Total net earnings and primary common shares ................ $ 79 124,514,858 $ 48 126,290,700
=========== =========== =========== ===========
Primary earnings per common share ........................... $ .64 $ .38
=========== ===========
Fully diluted earnings per common share
Net earnings available for common stock and
weighted average number of common
shares outstanding ....................................... $ 79 124,014,987 $ 48 125,847,741
Stock options assumed exercised - net ....................... - 509,764 - 518,857
----------- ----------- ----------- -----------
Total net earnings and fully diluted common shares .......... $ 79 124,524,751 $ 48 126,366,598
=========== =========== =========== ===========
Fully diluted earnings per common share ..................... $ .64 $ .38
=========== ===========
SIX MONTHS
--------------------------------------------------------------
1997 1996
--------------------------- ----------------------------
Earnings Shares Earnings Shares
--------------------------- ----------------------------
(Dollars in Millions, Except per Share Amounts)
Primary earnings per common share
Net earnings available for common stock and
weighted average number of common
shares outstanding ....................................... $ 189 124,356,862 $ 86 126,089,794
Stock options assumed exercised - net ....................... - 488,412 - 464,492
----------- ----------- ----------- -----------
Total net earnings and primary common shares ................ $ 189 124,845,274 $ 86 126,554,286
=========== =========== =========== ===========
Primary earnings per common share ......................... $ 1.52 $ .68
=========== ===========
Fully diluted earnings per common share
Net earnings available for common stock and
weighted average number of common
shares outstanding ....................................... $ 189 124,356,862 $ 86 126,089,794
Stock options assumed exercised - net ....................... - 489,216 - 703,938
----------- ----------- ----------- -----------
Total net earnings and fully diluted common shares .......... $ 189 124,846,078 $ 86 126,793,732
=========== =========== =========== ===========
Fully diluted earnings per common share ..................... $ 1.52 $ .68
=========== ===========
</TABLE>
13
BURLINGTON RESOURCES INC.
RATIO OF EARNINGS TO FIXED CHARGES
EXHIBIT 12.1
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS
----------------------
1997 1996
------ ------
(In Millions,
Except Ratio Amounts)
<S> <C> <C>
Earnings
Income Before Income Taxes ...................................... $235 $104
Add
Interest and fixed charges ................................... 56 57
Portion of rent under long-term operating
leases representative of an interest factor ............... 3 3
---- ----
Total Earnings Available for Fixed Charges ...................... $294 $164
==== ====
Fixed Charges
Interest and fixed charges ...................................... $ 56 $ 57
Portion of rent under long-term operating
leases representative of an interest factor .................. 3 3
Capitalized interest ............................................ 2 1
---- ----
Total Fixed Charges ............................................. $ 61 $ 61
==== ====
Ratio of Earnings to Fixed Charges ................................. 4.82 x 2.69 x
==== ====
</TABLE>
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE BURLINGTON
RESOURCES INC. CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 1997 AND THE RELATED
CONSOLIDATED STATEMENT OF INCOME FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1997,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 449
<SECURITIES> 41
<RECEIVABLES> 191
<ALLOWANCES> 0
<INVENTORY> 23
<CURRENT-ASSETS> 725
<PP&E> 5,764
<DEPRECIATION> 2,210
<TOTAL-ASSETS> 4,372
<CURRENT-LIABILITIES> 314
<BONDS> 0
0
0
<COMMON> 2
<OTHER-SE> 2,414
<TOTAL-LIABILITY-AND-EQUITY> 4,372
<SALES> 666
<TOTAL-REVENUES> 666
<CGS> 428
<TOTAL-COSTS> 428
<OTHER-EXPENSES> (53)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 56
<INCOME-PRETAX> 235
<INCOME-TAX> 46
<INCOME-CONTINUING> 189
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 189
<EPS-PRIMARY> 1.52
<EPS-DILUTED> 1.52
</TABLE>
