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, 1998
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 June 30, 1998 177,493,067
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
BURLINGTON RESOURCES INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
SECOND QUARTER SIX MONTHS
-------------- -------------
1998 1997 1998 1997
---- ---- ---- ----
(In Millions, Except per Share Amounts)
<S> <C> <C> <C> <C>
Revenues ................................... $412 $427 $844 $995
Costs and Expenses ......................... 348 334 681 695
---- ---- ---- ----
Operating Income ........................... 64 93 163 300
Interest Expense ........................... 36 34 72 70
Other Income - Net ......................... 2 53 5 53
---- ---- ---- ----
Income Before Income Taxes ................. 30 112 96 283
Income Tax Expense ......................... 7 26 25 66
---- ---- ---- ----
Net Income ................................. $ 23 $ 86 $ 71 $ 217
==== ==== ==== ====
Basic Earnings per Common Share ............ $.13 $.49 $.40 $1.23
==== ==== ==== ====
Diluted Earnings per Common Share .......... $.13 $.49 $.40 $1.22
==== ==== ==== ====
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
1
<PAGE>
BURLINGTON RESOURCES INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
------ ------
(In Millions, Except Share Data)
<S> <C> <C>
ASSETS
Current Assets
Cash and Cash Equivalents ........................................ $ 23 $ 152
Short-term Investments ........................................... 69 83
Accounts Receivable .............................................. 328 376
Inventories ...................................................... 47 39
Other Current Assets ............................................. 28 28
------ ------
495 678
------ ------
Oil & Gas Properties (Successful Efforts Method) ................... 8,994 8,666
Other Properties ................................................... 733 689
------ ------
9,727 9,355
Accumulated Depreciation, Depletion and Amortization ............. 4,540 4,315
------ ------
Properties - Net ............................................... 5,187 5,040
------ ------
Other Assets ....................................................... 115 103
------ ------
Total Assets ................................................. $5,797 $5,821
====== ======
LIABILITIES
Current Liabilities
Accounts Payable ................................................. $ 236 $ 395
Taxes Payable .................................................... 87 71
Accrued Interest ................................................. 27 28
Dividends Payable ................................................ 24 24
Deferred Revenue ................................................. 18 19
Other Current Liabilities ........................................ 1 1
------ ------
393 538
------ ------
Long-term Debt ..................................................... 1,840 1,748
------ ------
Deferred Income Taxes .............................................. 192 203
------ ------
Deferred Revenue ................................................... 48 56
------ ------
Other Liabilities and Deferred Credits ............................. 257 260
------ ------
Commitments and Contingent Liabilities
STOCKHOLDERS' EQUITY
Preferred Stock, Par Value $.01 Per Share
(Authorized 75,000,000 Shares; No Shares Issued) ................ - -
Common Stock, Par Value $.01 Per Share
(Authorized 325,000,000 Shares; Issued 202,795,635 Shares) ...... 2 2
Paid-in Capital .................................................... 2,996 3,001
Retained Earnings .................................................. 1,073 1,051
------ ------
4,071 4,054
Cost of Treasury Stock
(25,302,568 and 26,087,134 Shares for 1998 and 1997, respectively) 1,004 1,038
------ ------
Stockholders' Equity ............................................... 3,067 3,016
------ ------
Total Liabilities and Stockholders' Equity ................... $5,797 $5,821
====== ======
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
2
<PAGE>
BURLINGTON RESOURCES INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS
--------------
1998 1997
----- -----
(In Millions)
<S> <C> <C>
Cash Flows From Operating Activities
Net Income ............................................. $ 71 $ 217
Adjustments to Reconcile Net Income to Net Cash
Provided By Operating Activities
Depreciation, Depletion and Amortization ............. 267 273
Deferred Income Taxes ................................ (11) 24
Exploration Costs .................................... 116 112
Gain on Sales of Oil and Gas Properties .............. - (50)
Working Capital and Other Changes....................... (68) 49
----- -----
Net Cash Provided By Operating Activities ........... 375 625
----- -----
Cash Flows From Investing Activities
Additions to Properties ................................ (537) (526)
Short-term Investments ................................. 14 (41)
Proceeds from Sales and Other .......................... (35) 462
----- -----
Net Cash Used In Investing Activities ............... (558) (105)
----- -----
Cash Flows From Financing Activities
Proceeds from Long-term Debt............................ 92 -
Reduction in Long-term Debt ............................ - (46)
Dividends Paid ......................................... (49) (38)
Common Stock Purchases ................................. - (58)
Other .................................................. 11 10
----- -----
Net Cash Provided By (Used In) Financing Activities . 54 (132)
----- -----
Increase (Decrease) in Cash and Cash Equivalents ......... (129) 388
Cash and Cash Equivalents
Beginning of Year ...................................... 152 77
----- -----
End of Period .......................................... $ 23 $ 465
===== =====
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
3
<PAGE>
BURLINGTON RESOURCES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF PRESENTATION
The 1997 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. The consolidated financial statements include
certain reclassifications that were made to conform to current presentation.
Amounts related to the first six months of 1997 have been restated to include
the combined business activities for the Company and The Louisiana Land and
Exploration Company ("LL&E").
Basic earnings per common share ("EPS") is computed by dividing income
available to common stockholders by the weighted average number of common shares
outstanding for the period. The weighted average number of common shares
outstanding for computing basic EPS was 177 million and 176 million for the
second quarter of 1998 and 1997, respectively, and 177 million for the first six
months of 1998 and 1997. 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. The weighted average number of common shares
outstanding for computing diluted EPS, including dilutive stock options, was 178
million and 177 million for the second quarter of 1998 and 1997, respectively,
and 178 million and 177 million for the first six months of 1998 and 1997,
respectively. No adjustments were made to reported net income in the computation
of EPS. EPS discussions within this document are in reference to basic EPS.
2. COMMITMENTS AND CONTINGENT LIABILITIES
The Company and its subsidiaries are involved in several proceedings
challenging the Company's payment of royalties for its crude oil and natural gas
production.
The Company has entered into settlement agreements in two private class
action lawsuits with respect to the payment of royalties for natural gas and
crude oil. On May 25, 1995, the 270th Judicial District Court of Harris County,
Texas entered an order in a lawsuit styled Caroline Altheide, et al. v. Meridian
Oil Inc., et al., which allowed the suit to be maintained as a class action on
behalf of all royalty and overriding royalty interest owners in all of the
properties of Burlington Resources Oil & Gas Company, a subsidiary of the
Company which was formerly known as Meridian Oil Inc. ("BROG"), and all working
interest owners in properties operated by BROG who received payments from BROG
at any time from and after December 1, 1986 based upon wellhead sales of natural
gas to its affiliate Burlington Resources Trading Inc. ("BRTI"). The lawsuit
involves claims for unspecified actual and punitive damages based upon alleged
breaches of duties owed to interest owners because of the use of corporate
affiliates to gather, treat and market natural gas. The plaintiffs allege that
4
<PAGE>
BROG's gas producing affiliates have sold natural gas to marketing affiliates at
below market prices which were then used as the basis for accounting to interest
owners. Plaintiffs also allege that BROG's pricing includes inappropriate
deductions of gathering and transportation costs. BROG has consistently denied
liability. On August 6, 1996, the parties executed a settlement agreement and
the trial court entered a Judgment giving final approval to the terms of the
settlement agreement on November 12, 1996. Four class members who objected to
the settlement filed a motion for a new trial or, in the alternative, to modify,
alter or amend judgment. On December 16, 1996, the trial court entered an order
denying the motion. The objectors purported to perfect an appeal of the Judgment
and on July 24, 1997, the Fourteenth Court of Appeals of the State of Texas
dismissed the appeal. On October 17, 1997, the objectors filed a Petition for
Review with The Supreme Court of Texas ("Court"), and on June 23, 1998, the
Court denied the Petition.
On November 20, 1997, the Company and numerous other defendants entered
into a settlement agreement in a lawsuit styled as The McMahon Foundation, et
al. v. Amerada Hess Corporation, et al. This lawsuit is a proposed class action
consisting of both working interest owners and royalty owners against numerous
defendants, all of which are oil companies and/or purchasers of oil from oil
companies, including BROG and LL&E, also a subsidiary of the Company. The
plaintiffs allege that the defendants conspired to fix, depress, stabilize and
maintain at artificially low levels the prices paid for oil by, among other
things, setting their posted prices at arbitrary levels below competitive market
prices, and that the defendants paid royalties based on the purchase by the oil
companies' marketing affiliates at posted prices rather than the gross proceeds
ultimately received by such marketing affiliates. Under the settlement
agreement, the Company's share of the settlement payment would be approximately
$4.7 million. Cases involving similar allegations have been filed in federal
courts in other states. On January 14, 1998, the United States Judicial Panel on
Multidistrict Litigation issued an order consolidating these cases and
transferring the McMahon case to the United States District Court for the
Southern District of Texas in Corpus Christi, where a consolidated resolution of
the issues will be sought.
The Company is also involved in several governmental proceedings
relating to the payment of royalties. Various administrative proceedings are
pending before the Minerals Management Service ("MMS") of the United States
Department of the Interior with respect to the proper valuation of oil and gas
produced on federal and Indian lands for purposes of paying royalties on
production sold by BROG to its marketing affiliate, BRTI, or gathered by its
affiliate, Burlington Resources Gathering Inc. ("BRGI"). In general, these
proceedings stem from regular MMS audits of the Company's royalty payments over
various periods of time and involve the interpretation of the relevant federal
regulations. Most of these administrative proceedings currently have been
suspended pending negotiations between the Company and the MMS to resolve their
disputes regarding the appropriate valuation methodology.
In late February 1998, the Company and numerous other oil and gas
companies received a complaint filed in a lawsuit in the United States District
Court for the Eastern District of Texas in Lufkin styled as United States of
America ex rel J. Benjamin Johnson, Jr., et al v. Shell Oil Company, et al.
alleging violations of the civil False Claims Act. The United States has
intervened in this lawsuit as to some of the defendants, including the Company,
and has filed a separate complaint. This suit alleges that the Company underpaid
royalties for crude oil produced on federal and Indian lands through the use of
below-market posted prices in the sale of oil from BROG to BRTI. The suit
alleges that royalties paid by BROG based on these posted prices were lower than
the royalties allegedly required to be paid under federal regulations, and that
the forms filed by BROG with the MMS reporting the royalties paid were false,
thereby violating the civil False Claims Act. In addition, the Company has been
advised that it is a target of an investigation and has responded to various
grand jury document subpoenas in connection with an investigation by the United
States Attorney for the District of Wyoming into the alleged underpayment of oil
and gas royalties. The Company is cooperating with the investigation.
5
<PAGE>
Based on the Company's present understanding of the various
governmental proceedings, the Company believes that it has substantial defenses
to these claims and the Company intends to vigorously assert such defenses.
The Company and its subsidiaries are negotiating an administrative
order with the federal Environmental Protection Agency ("EPA") involving permit
exceedences for five Montana injection wells. The EPA alleges that the Company
and its subsidiaries intermittently exceeded the maximum permitted injection
pressures on these wells over a period of several years. The Company is engaged
in investigating the factual basis for the EPA's claims. In July 1998, the EPA
proposed an administrative order that would result in a fine of $125,000 for
these alleged permit exceedences.
The Company and its subsidiaries are named defendants in numerous
lawsuits and named parties in numerous governmental and other 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 litigation, will not have a materially
adverse effect on the consolidated financial position or results of operations
of the Company.
3. HEDGING ACTIVITIES
The Company Utilizes options and swaps which set floor prices at
various hubs for anticipated future crude oil and natural gas production and
allow the Company to participate in market price increases. These transactions
are accounted for as hedges of the Company's underlying production. The
resulting gain or loss is realized when the hedged commodity is produced. The
following table summarizes information related to the hedging program as of
June 30, 1998.
<TABLE>
<CAPTION>
Percent of Average Deferred
Production Hedge Current Floor Gain(Loss)
Period Commodity Volumes Production Prices (In Millions)
- --------- ----------- ---------- ---------- ------- ------------
<S> <C> <C> <C> <C> <C>
1998 Crude oil 1,288 MBbls 8% $20.01 $ 6
1998 Natural gas 92 BCF 31% $ 2.25 $ (10)
1999 Natural gas 213 BCF 36% $ 2.00 $ (18)
2000 Natural gas 198 BCF 33% $ 2.33 $ (3)
2001 Natural gas 75 BCF 12% $ 2.37 $ (1)
</TABLE>
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, 1998 and December 31, 1997 was 37
percent.
The Company's credit facilities are comprised of a $600 million
revolving credit agreement that expires in February 2003 and a $400 million
revolving credit agreement that expires in February 1999. The $400 million
revolving credit agreement is renewable annually by mutual consent. As of June
6
<PAGE>
30, 1998, there were no borrowings outstanding under the credit facilities. At
June 30, 1998, the Company had outstanding commercial paper borrowings of $92
million at an average interest rate of 6 percent. The Company also has the
capacity to issue $1 billion of securities under a shelf registration statement
filed with the Securities and Exchange Commission.
In July 1998, the Company's Board of Directors approved the repurchase
of up to two million shares of the Company's common stock. Since December 1988,
the Company has repurchased approximately 31 million shares.
Net cash provided by operating activities for the first six months of
1998 was $375 million compared to $625 million in 1997. The decrease was
primarily due to significantly lower operating income and working capital and
other changes.
As of June 30, 1998, the Company had $69 million invested in
highly-liquid debt securities with maturities of more than three months. These
short-term investments when combined with cash and cash equivalents equaled $92
million as of June 30, 1998.
The Company is involved in certain lawsuits, environmental proceedings
and other related matters. Although it is reasonably 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 1998 totaled $537
million compared to $526 million in 1997. Capital expenditures, excluding proved
property acquisitions, are currently projected to be approximately $1.15 billion
for all of 1998 and are expected to be primarily for the development and
exploration of oil and gas properties and plant and pipeline expenditures.
Capital expenditures will be funded from internal cash flow supplemented, if
needed, by external financing.
Dividends
On July 8, 1998, the Board of Directors declared a common stock
quarterly dividend of $.1375 per share, payable October 1, 1998.
Results of Operations - Second Quarter 1998 Compared to Second Quarter 1997
The Company reported net income of $23 million or $.13 per share for
the second quarter of 1998 compared to $86 million or $.49 per share in 1997.
Operating income for the second quarter of 1998 was $64 million compared to $93
million in 1997.
Revenues were $412 million for the second quarter of 1998 compared to
$427 million for the second quarter of 1997. Natural gas sales prices increased
7 percent to $1.93 per MCF which increased revenues $20 million. Natural gas
sales volumes were essentially unchanged at 1,660 MMCF per day. Average oil
sales prices decreased 28 percent to $13.42 per barrel which decreased revenues
$41 million. Oil sales volumes were essentially unchanged at 84.7 MBbls per day.
7
<PAGE>
Costs and expenses were $348 million for the second quarter of 1998
compared to $334 in 1997. The increase was primarily due to an $11 million
increase in exploration costs and a $3 million increase in production and
processing expenses.
Other income - net was $2 million for the second quarter of 1998
compared to $53 million in 1997 primarily due to the $50 million gain recognized
last year related to the sales of oil and gas properties associated with the
Company's 1996 divestiture program.
The effective income tax rate was an expense of 24 percent for the
second quarter of 1998 compared to 23 percent in 1997. The increased tax expense
in 1998 is primarily a result of lower nonconventional fuel tax credits.
Results of Operations - Six Months 1998 Compared to Six Months 1997
The Company reported net income of $71 million or $.40 per share for
the first six months of 1998 compared to $217 million or $1.23 per share in
1997. Operating income for the first six months of 1998 was $163 million
compared to $300 million in 1997.
Revenues were $844 million for the first six months of 1998 compared to
$995 million in 1997. Natural gas sales prices decreased 7 percent to $1.98 per
MCF and gas sales volumes decreased 2 percent to 1,654 MMCF per day which
decreased revenues $44 million and $14 million, respectively. Average oil sales
prices decreased 29 percent to $14.34 per barrel and oil sales volumes decreased
3 percent to 85.4 MBbls per day which decreased revenues $90 million and $9
million, respectively. Gas and oil sales volumes decreased primarily due to the
sales of oil and gas properties associated with the Company's 1996
divestiture program which was completed during the second quarter of 1997.
Costs and expenses were $681 million for the first six months of 1998
compared to $695 million in 1997. The decrease was primarily due to a $10
million decrease in production and processing expenses and a $7 million
decrease in depreciation, depletion and amortization resulting from a 2
percent decrease in 1998 production levels partially offset by a $4 million
increase in exploration costs.
Other income - net was $5 million for the first six months of 1998
compared to $53 million in 1997 primarily due to the $50 million gain recognized
last year related to the sales of oil and gas properties associated with the
Company's 1996 divestiture program.
The effective income tax rate was an expense of 26 percent for the
first six months of 1998 compared to 23 percent in 1997. The increased tax
expense in 1998 is primarily a result of lower nonconventional fuel tax credits.
Other Matters
In March 1998, the Financial Accounting Standards Board, ("FASB")
issued Statement of Financial Accounting Standard ("SFAS") No. 132,
Employers' Disclosures about Pensions and Other Postretirement Benefits, which
is effective for fiscal years beginning after December 15, 1997.
SFAS No. 132 revises employers' disclosures about pension and other
postretirement benefit plans. It standardizes the disclosure requirements for
pensions and other postretirement benefits to the extent practicable, requires
additional information on changes in the benefits obligations and fair values of
8
<PAGE>
plan assets and eliminates certain disclosures. The Company plans to adopt SFAS
No. 132 for the year ended December 31, 1998.
In June 1998, the FASB issued SFAS No. 133, Accounting for Derivative
Instruments and Hedging Activities, which is effective for fiscal years
beginning after June 15, 1999.
SFAS No. 133 establishes accounting and reporting standards for
derivative instruments, including certain derivative instruments embedded in
other contracts, and for hedging activities. It also requires that an entity
recognize all derivatives as either assets or liabilities in the balance sheet
and measure those items at fair value. If certain conditions are met, a
derivative may be specifically designated as (a) a hedge of the exposure to
changes in the fair value of a recognized asset or liability or an unrecognized
firm commitment, (b) a hedge of the exposure to variable cash flows of a
forecasted transaction, or (c) a hedge of the foreign currency exposure of a net
investment in a foreign operation, an unrecognized firm commitment, an
available-for-sale security, or a foreign-currency-denominated forecasted
transaction. The Company plans to adopt SFAS No. 133 for the first quarter of
the year ended December 31, 2000 and does not expect a material impact on its
financial statements.
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 1997
Annual Report on Form 10-K.
9
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings
See Note 2 of Notes to Consolidated Financial Statements.
ITEM 5. Other Information
Discretionary Voting by the Company on Certain Matters
In connection with the Company's 1999 Annual Meeting of
Stockholders, the Company intends to solicit proxies which will
confer discretionary authority to vote on certain matters. In
accordance with rules recently promulgated by the Securities and
Exchange Commission, the discretionary authority to be solicited
will include matters which are not included in the Proxy Statement
as Shareholder Proposals and matters of which the Company did not
have notice by January 5, 1999.
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.
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 1998.
Items 2, 3 and 4 of Part II are not applicable and have been omitted.
10
<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/ Philip W. Cook
Philip W. Cook
Vice President, Controller and
Chief Accounting Officer
Date: August 13, 1998
11
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED
FROM THE BURLINGTON RESOURCES INC. CONSOLIDATED
BALANCE SHEET AS OF JUNE 30, 1998 AND THE RELATED
CONSOLIDATED STATEMENT OF INCOME FOR THE SIX MONTH
PERIOD ENDED JUNE 30, 1998, 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-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 23
<SECURITIES> 69
<RECEIVABLES> 328
<ALLOWANCES> 0
<INVENTORY> 47
<CURRENT-ASSETS> 495
<PP&E> 9,727
<DEPRECIATION> 4,540
<TOTAL-ASSETS> 5,797
<CURRENT-LIABILITIES> 393
<BONDS> 0
<COMMON> 2
0
0
<OTHER-SE> 3,065
<TOTAL-LIABILITY-AND-EQUITY> 5,797
<SALES> 844
<TOTAL-REVENUES> 844
<CGS> 681
<TOTAL-COSTS> 681
<OTHER-EXPENSES> (5)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 72
<INCOME-PRETAX> 96
<INCOME-TAX> 25
<INCOME-CONTINUING> 71
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 71
<EPS-PRIMARY> 0.40
<EPS-DILUTED> 0.40
</TABLE>
