<PAGE> 1
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: August 18, 1999
(Date of earliest event reported: August 16, 1999)
BURLINGTON RESOURCES INC.
(Exact name of registrant as specified in the charter)
<TABLE>
<S> <C> <C>
Delaware 1-9971 91-141384
(State of other (Commission File Number) (I.R.S. Employer
jurisdiction of Identification No.)
incorporation)
</TABLE>
5051 Westheimer, Suite 1400,
Houston, Texas 77056
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 624-9500
================================================================================
<PAGE> 2
Item 5. Other Events
In connection with the Combination Agreement entered into on
August 16, 1999 by Burlington Resources Inc. ("BR") and Poco Petroleums, Ltd.
("Poco"), certain joint analyst presentations being given by BR and Poco are
attached as exhibits hereto and incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 Analyst Presentation (United States)
99.2 Analyst Presentation (Canada)
<PAGE> 3
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.
BURLINGTON RESOURCES INC.
By: /s/ Frederick J. Plaeger II
Dated: August 19, 1999
<PAGE> 4
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Number Description
-------------- -----------
<S> <C>
99.1 Analyst Presentation (United States)
99.2 Analyst Presentation (Canada)
</TABLE>
<PAGE> 1
EXHIBIT 99.1
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
================================================================================
[PICTURE]
BURLINGTON
RESOURCES
POCO
PRESENTATION TO
INVESTMENT COMMUNITY
================================================================================
<PAGE> 2
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
================================================================================
BOBBY SHACKOULS
CHAIRMAN, PRESIDENT & CEO
BURLINGTON RESOURCES
================================================================================
<PAGE> 3
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
COMPANY MISSION STATEMENT
================================================================================
"TO BUILD LONG-TERM SHAREHOLDER VALUE
THROUGH
VALUE-ADDED GROWTH
AND
EFFECTIVE COST MANAGEMENT"
================================================================================
3
<PAGE> 4
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
TRANSACTION SUMMARY
===============================================================================
TRANSACTION DESCRIPTION(1): o US$2.5Bn ACQUISITION OF POCO PETROLEUMS
o 100% STOCK AND ASSUMPTION OF DEBT
EXCHANGE RATIO: o 0.25 EXCHANGEABLE SHARE PER POCO COMMON SHARE
OWNERSHIP: o 82% BURLINGTON RESOURCES
18% POCO PETROLEUMS
ACCOUNTING TREATMENT: o POOLING OF INTERESTS
EXPECTED CLOSING: o BY YEAR-END 1999
Note: (1) Based on exchange ratio of 0.25 BR shares per Poco Share; BR share
price on 8/16/99 of $45.3125 and C$1.4833:US$1.00.
===============================================================================
4
<PAGE> 5
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
RATIONALE FOR TRANSACTION
================================================================================
COMPLEMENTS BR'S VALUE ADDED STRATEGY
o ENTRY VEHICLE INTO MAJOR NEW GROWTH AREA
o EXPANDS NORTH AMERICAN GAS POSITION
o EXPANDS GROWTH PORTFOLIO
o BUILDS ON CORE COMPETENCIES
o CREATES PLATFORM FOR FURTHER EXPANSION
o ACCRETIVE TO BOTH EARNINGS AND CASH FLOW
o ACCRETIVE TO NET ASSET VALUE
================================================================================
5
<PAGE> 6
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
RATIONALE FOR TRANSACTION
===============================================================================
EXPANDS NORTH AMERICAN NATURAL GAS POSITION
12/31/98 NORTH AMERICAN 1998 NORTH AMERICAN
NATURAL GAS RESERVES NATURAL GAS PRODUCTION
[CHART] [CHART]
Source: J.S. Herolds
===============================================================================
6
<PAGE> 7
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
COMBINED COMPANY OVERVIEW
================================================================================
COMPARABLE COMPANY ANALYSIS
PROVED RESERVES PRODUCTION
[BAR CHART] [BAR CHART]
Source: 1998 Company Annual Reports
Note: (1) Net 6:1 total reserves and production data for 1998.
================================================================================
7
<PAGE> 8
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
POCO NETBACK ANALYSIS
===============================================================================
YEAR-ENDED DECEMBER 31, 1998
REVENUES/BQE(1) OPERATING COSTS/BQE(1)
[BAR CHART] [BAR CHART]
Source: Based on Morgan Stanley Dean Witter Equity Research
Note: (1) Gross 6:1.
===============================================================================
8
<PAGE> 9
- --------------------------------------------------------------------------------
BURLINGTON RESOURCES
- --------------------------------------------------------------------------------
POCO NETBACK ANALYSIS
================================================================================
YEAR-ENDED DECEMBER 31, 1998
CASH NETBACK/BOE (1)(2)
[BAR CHART]
Source: Based on Morgan Stanley Dean Witter Equity Research
Note: (1) Gross 6:1.
(2) Cash Netback = Realized Price - Op Cost - SG&A per BOE of annual
production.
================================================================================
9
<PAGE> 10
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
COMBINED COMPANY OVERVIEW
================================================================================
COMPARABLE COMPANY ANALYSIS
DEBT-TO-CAPITAL
[BAR CHART]
Source: SEC / Edgar
Note: (1) BR/POCO as of 6/30/99; Based on Historical information for BR and
Poco.
================================================================================
10
<PAGE> 11
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
BALANCED PORTFOLIO
===============================================================================
[CHART]
===============================================================================
11
<PAGE> 12
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
PROJECTED SIGNIFICANT PRODUCTION MILESTONES
===============================================================================
[CHART]
===============================================================================
12
<PAGE> 13
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
================================================================================
CRAIG STEWART
PRESIDENT & CEO
POCO PETROLEUMS LTD.
================================================================================
<PAGE> 14
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
HISTORY OF POCO PETROLEUMS
===============================================================================
o FOUNDED BY CURRENT BOARD MEMBER ED GALVIN IN 1978
o CRAIG STEWART MADE CEO IN 1992
o TRANSITION FROM SHALLOW PLAYER TO DEEPEST DRILLER IN WESTERN PART OF BASIN
o AGGRESSIVELY PURSUED GROWTH OPPORTUNITIES
- DEEPER HORIZONS/LARGER GAS PROSPECTS
- MONKMAN PASS, PAN EAST, CANRISE ACQUISITIONS
- CHEVRON JOINT VENTURE
o POSITIONED FOR VALUE - ADDED GROWTH
===============================================================================
14
<PAGE> 15
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
POCO PETROLEUMS STRATEGY
===============================================================================
o GENERATE SUSTAINABLE LONG-TERM GROWTH IN EARNINGS AND CASH FLOW
o PURSUE HIGH-IMPACT, DEEP NATURAL GAS EXPLORATION IN THE NORTHERN REGION
o CONTINUE NATURAL GAS FOCUS TARGETING HIGH POTENTIAL DRILLING AND STRATEGIC
ACQUISITIONS
o MAINTAIN DOMINANT POSITION IN STRONG CASH GENERATING WESTERN REGION
===============================================================================
15
<PAGE> 16
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
OVERVIEW OF POCO PETROLEUMS
================================================================================
CONSISTENT NATURAL GAS FOCUS
RESERVES (Tcfe)(1)(2)
- ---------------------
27% ANNUAL GROWTH
[GRAPH]
14% ANNUAL GROWTH PER SHARE
315% AVERAGE RESERVE REPLACEMENT RATE
PRODUCTION (MMcfe/d)(1)
- -----------------------
21% ANNUAL GROWTH
9% ANNUAL GROWTH PER SHARE
[GRAPH]
Note: (1) Gross 10:1, as reported by Poco.
(2) Proved plus probable.
================================================================================
16
<PAGE> 17
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
WHY BR?
================================================================================
o GLOBAL SUPER INDEPENDENT
o ONE OF THE LARGEST U.S. NATURAL GAS COMPANIES
o HIGH QUALITY ASSET PORTFOLIO WITH BALANCE AND DEPTH
o STRONG EXPLOITATION AND ENGINEERING CAPABILITY
o GROWING EXPLORATION PROGRAM
o EXPANDING INTERNATIONAL PRESENCE
o FINANCIALLY STRONG AND FLEXIBLE
================================================================================
17
<PAGE> 18
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
================================================================================
RANDY L. LIMBACHER
PRESIDENT & CEO
BURLINGTON RESOURCES NORTH AMERICA
================================================================================
<PAGE> 19
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
BR FOCUS AREAS
================================================================================
[MAP]
================================================================================
19
<PAGE> 20
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
CANADIAN GAS POTENTIAL
===============================================================================
[MAP]
Source "Natural Gas Potential in Canada," a report
by the Canadian Gas Potential Committee
===============================================================================
20
<PAGE> 21
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
OVERVIEW OF POCO PETROLEUMS
================================================================================
DESCRIPTION OF ASSETS(1)
[MAP]
<TABLE>
<CAPTION>
RESERVES (BCFE)(2)
- ------------------
<S> <C>
PROVED 1,873
PROBABLE 818
TOTAL 2P 2,691
</TABLE>
<TABLE>
<CAPTION>
1998 AVERAGE DAILY PRODUCTION
- -----------------------------
<S> <C>
NAT. GAS (MMCFPD) 494
OIL (MBPD) 23
</TABLE>
<TABLE>
<CAPTION>
ACREAGE
- -------
<S> <C>
NET UNDEVELOPED 3,089,700
</TABLE>
Note: (1) Net 6:1, all production and reserve data restated to conform to
current BR reporting practices.
(2) As of December 31, 1998.
================================================================================
21
<PAGE> 22
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
OVERVIEW OF POCO PETROLEUMS
================================================================================
EXPLORATION AND DEVELOPMENT STRATEGY
[MAP]
WESTERN REGION
o MULTIZONE POTENTIAL
o DRILLING UP TO 10,000 FEET
o DRILLING UP TO 150 WELLS ANNUALLY
o MAINTAIN INVENTORY OF 200+
DEFINED DRILLING LOCATIONS
o 65% OF CURRENT PRODUCTION BASE
================================================================================
22
<PAGE> 23
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
OVERVIEW OF POCO PETROLEUMS
================================================================================
EXPLORATION AND DEVELOPMENT STRATEGY
[MAP]
NORTHERN REGION/
DEEP GAS
o WORLD-CLASS NATURAL GAS RESERVE POTENTIAL
o LESS COMPETITION
o EXCELLENT OPPORTUNITY FOR APPLICATION OF TECHNOLOGY
- 3D SEISMIC
- DEEP DRILLING
- SOUR GAS TREATING
o 20% OF CURRENT PRODUCTION BASE
o CHEVRON FARM-IN
================================================================================
23
<PAGE> 24
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
OVERVIEW OF POCO PETROLEUMS
===============================================================================
ALBERTA DEEP GAS EXPLORATION
CHEVRON JOINT VENTURE
o COMPLEMENTS EXISTING ACREAGE/SEISMIC
o POCO HAS A 14 WELL, 2 YEAR COMMITMENT
WITH AN OPTION ON A THIRD YEAR
o POCO WILL EARN A 50% WI IN CHEVRON LANDS [MAP]
o SHARING OF TECHNICAL EXPERTISE
COMBINED EXPLORATION PORTFOLIO
o 290,000 NET ACRES
o 16,000 km 2D SEISMIC
o 1,100 km(2) 3D SEISMIC
===============================================================================
24
<PAGE> 25
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
================================================================================
JOHN HAGALE
EXECUTIVE VP & CFO
BURLINGTON RESOURCES
================================================================================
<PAGE> 26
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
KEY STATISTICS
================================================================================
(US$)
<TABLE>
<CAPTION>
BURLINGTON PRO FORMA POCO
RESOURCES POCO COMBINED CONTRIBUTION
---------- ---- --------- ------------
<S> <C> <C> <C> <C>
EQUITY MARKET VALUE(1) $ 8.1Bn $1.8Bn $ 9.9Bn 18%
ENTERPRISE VALUE $ 10.1Bn $2.5Bn $ 12.6Bn 20%
1998 CASH FLOW(1) $ 901MM $225MM $1,126MM 20%
1998 NET INCOME(1) $ 86MM $ 34MM $ 120MM 28%
1998 NET DAILY PRODUCTIONS(2)(3)
LIQUIDS (MBPD) 83 23 106 22%
NATURAL GAS (MMCFPD) 1,647 494 2,141 23%
TOTAL (MBODPD) 357 105 462 23%
PROVED RESERVES (MMBOE)(2)(3) 1,337 312 1,649 19%
% GAS 80% 77% 79%
</TABLE>
NOTES: (1) As reported; assumes BR closing price on 8/16/99 of $45.3125,
178.2 million BR shares outstanding, an exchange ratio of
0.250x, and C$1.4833 : US$1.00.
(2) Net 6:1 at 12/31/98; restated to conform to Burlington
Resources reporting practice.
(3) Poco is pro forma for the Pan East and Canrise acquisitions.
================================================================================
26
<PAGE> 27
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
VALUATION PARAMETERS
================================================================================
YEAR-ENDED DECEMBER 31, 1998
RESERVES (NET 6:1):
- -------------------
PROVED 1.8 TCFE
PROVED AND PROBABLE 2.7 TCFE
OTHER ASSETS:
- -------------
UNDEVELOPED ACREAGE 3.1 MM NET ACRES
SEISMIC
2D 64,000 KM
3D 2,040 KM(2)
EXCESS GAS PROCESSING CAPACITY
================================================================================
27
<PAGE> 28
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
ACCRETIVE TO PER SHARE RESULTS(1)
================================================================================
CFPS
(Standalone Data as per First Call)
1998 1999 2000
2.2% 6.1% 5.5%
Note: (1) Assumed exchange ratio: 0.250x. Pooling of interests accounting.
Excludes merger-related charges.
================================================================================
28
<PAGE> 29
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
COMBINED CAPITALIZATION
================================================================================
(US$MM)(1)
<TABLE>
<CAPTION>
AS OF JUNE 30, 1999
-------------------------------------------
BURLINGTON
RESOURCES POCO COMBINED
---------- ---------- --------
<S> <C> <C> <C>
TOTAL DEBT $1,988 $ 743 $2,731
SHAREHOLDER'S EQUITY 2,988 821 3,809
------ ------ ------
BOOK CAPITALIZATION $4,976 $1,564 $6,540
====== ====== ======
FULLY DILUTED SHARES 178.2 39.3(2) 217.5
MKT. VALUE EQUITY(3) $ 8.1Bn $ 1.8Bn(4) $ 9.9Bn
ENTERPRISE VALUE(3) $ 10.1Bn $ 2.5Bn $ 12.6Bn
DEBT/BOOK CAP. 40% 48% 42%
DEBT/MKT. CAP. 19% 29% 21%
</TABLE>
Notes: (1) C$1.4833:US$1.00
(2) BR equivalent shares at 0.250x exchange ratio.
(3) BR closing price on 8/16/99 : $45.3125.
(4) Based on 0.250% exchange ratio.
================================================================================
29
<PAGE> 30
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
================================================================================
Forward-Looking Statements
THIS PRESENTATION CONTAINS PROJECTIONS AND OTHER FORWARD-LOOKING STATEMENTS
WITHIN THE MEANING OF SECTION 27A OF THE U.S. SECURITIES ACT OF 1933 AND SECTION
21E OF THE U.S. 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 PERIODIC REPORTS FILED
WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION.
================================================================================
30
<PAGE> 1
EXHIBIT 99.2
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
================================================================================
[PICTURE]
BURLINGTON
RESOURCES
POCO
PRESENTATION TO CANADIAN
INVESTMENT COMMUNITY
================================================================================
<PAGE> 2
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
================================================================================
CRAIG STEWART
PRESIDENT & CEO
POCO PETROLEUMS LTD.
================================================================================
<PAGE> 3
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
TRANSACTION SUMMARY
===============================================================================
TRANSACTION DESCRIPTION(1): o US$2.5Bn ACQUISITION OF POCO PETROLEUMS
o 100% STOCK AND ASSUMPTION OF DEBT
EXCHANGE RATIO: o 0.25 EXCHANGEABLE SHARE PER POCO COMMON SHARE
OWNERSHIP: o 82% BURLINGTON RESOURCES
18% POCO PETROLEUMS
ACCOUNTING TREATMENT: o POOLING OF INTERESTS
EXPECTED CLOSING: o BY YEAR-END 1999
Note: (1) Based on exchange ratio of 0.25 BR shares per Poco Share; BR share
price on 8/16/99 of $45.3125 and C$1.4833:US$1.00.
===============================================================================
3
<PAGE> 4
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
WHY BR?
================================================================================
o GLOBAL SUPER INDEPENDENT
o ONE OF THE LARGEST U.S. NATURAL GAS COMPANIES
o HIGH QUALITY ASSET PORTFOLIO WITH BALANCE AND DEPTH
o STRONG EXPLOITATION AND ENGINEERING CAPABILITY
o GROWING EXPLORATION PROGRAM
o EXPANDING INTERNATIONAL PRESENCE
o FINANCIALLY STRONG AND FLEXIBLE
================================================================================
4
<PAGE> 5
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
RATIONALE FOR TRANSACTION
===============================================================================
EXPANDS NORTH AMERICAN NATURAL GAS POSITION
12/31/98 NORTH AMERICAN 1998 NORTH AMERICAN
NATURAL GAS RESERVES NATURAL GAS PRODUCTION
[BAR CHART] [BAR CHART]
Source: J.S. Herolds
===============================================================================
5
<PAGE> 6
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
COMBINED COMPANY OVERVIEW
================================================================================
COMPARABLE COMPANY ANALYSIS
PROVED RESERVES PRODUCTION
[BAR CHART] [BAR CHART]
Source: 1998 Company Annual Reports
Note: (1) Net 6:1 total reserves and production data for 1998.
================================================================================
6
<PAGE> 7
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
COMBINED COMPANY OVERVIEW
================================================================================
COMPARABLE COMPANY ANALYSIS
DEBT-TO-CAPITAL
[BAR CHART]
Source: SEC / Edgar
Note: (1) BR/POCO as of 6/30/99; Based on Historical information for BR and
Poco.
================================================================================
7
<PAGE> 8
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
================================================================================
BOBBY SHACKOULS
CHAIRMAN, PRESIDENT & CEO
BURLINGTON RESOURCES
================================================================================
<PAGE> 9
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
COMPANY MISSION STATEMENT
================================================================================
"TO BUILD LONG-TERM SHAREHOLDER VALUE
THROUGH
VALUE-ADDED GROWTH
AND
EFFECTIVE COST MANAGEMENT"
================================================================================
9
<PAGE> 10
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
RATIONALE FOR TRANSACTION
================================================================================
COMPLEMENTS BR'S VALUE ADDED STRATEGY
o ENTRY VEHICLE INTO MAJOR NEW GROWTH AREA
o EXPANDS NORTH AMERICAN GAS POSITION
o EXPANDS GROWTH PORTFOLIO
o BUILDS ON CORE COMPETENCIES
o CREATES PLATFORM FOR FURTHER EXPANSION
o ACCRETIVE TO BOTH EARNINGS AND CASH FLOW
o ACCRETIVE TO NET ASSET VALUE
================================================================================
10
<PAGE> 11
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
BALANCED PORTFOLIO
===============================================================================
[CHART]
===============================================================================
11
<PAGE> 12
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
OVERVIEW OF POCO PETROLEUMS
===============================================================================
HISTORY OF BURLINGTON RESOURCES SCREENING PROCESS
[MAP]
o EXTENSIVE SCREENING PROCESS OF ENTIRE WESTERN CANADIAN SEDIMENTARY BASIN
o IDENTIFIED WEST OF 5 AS ATTRACTIVE AREA
o LARGEST PROSPECT INVENTORY
o DEEP GAS POTENTIAL
o PROACTIVELY IDENTIFIED IDEAL ENTRY VEHICLES
===============================================================================
12
<PAGE> 13
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
OVERVIEW OF POCO PETROLEUMS
================================================================================
CONSISTENT NATURAL GAS FOCUS
RESERVES (Tcfe)(1)(2)
- ---------------------
27% ANNUAL GROWTH
14% ANNUAL GROWTH PER SHARE [GRAPH]
315% AVERAGE RESERVE REPLACEMENT RATE
PRODUCTION (MMcfe/d)(1)
- -----------------------
21% ANNUAL GROWTH
9% ANNUAL GROWTH PER SHARE
[GRAPH]
Note: (1) Gross 10:1, as reported by Poco.
(2) Proved plus probable.
================================================================================
13
<PAGE> 14
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
POCO NETBACK ANALYSIS
===============================================================================
YEAR-ENDED DECEMBER 31, 1998
REVENUES / BOE(1) OPERATING COSTS / BOE(1)
[BAR CHART] [BAR CHART]
Source: Based on Morgan Stanley Dean Witter Equity Research
Note: (1) Gross 6:1.
===============================================================================
14
<PAGE> 15
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
POCO NETBACK ANALYSIS
================================================================================
YEAR-ENDED DECEMBER 31, 1998
[CASH NETBACK/BOE(1)(2)]
[BAR CHART]
Source: Based on Morgan Stanley Dean Witter Equity Research
Note: (1) Gross 6:1.
(2) Cash Netback = Realized Price - OP Cost - SG&A per BOE of annual
production.
================================================================================
15
<PAGE> 16
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
OVERVIEW OF POCO PETROLEUMS
================================================================================
DESCRIPTION OF ASSETS(1)
[MAP]
<TABLE>
<CAPTION>
RESERVES (BCFE)(2)
- ------------------
<S> <C>
PROVED 1,873
PROBABLE 818
TOTAL 2P 2,691
</TABLE>
<TABLE>
<CAPTION>
1998 AVERAGE DAILY PRODUCTION
- -----------------------------
<S> <C>
NAT. GAS (MMCFPD) 494
OIL (MBPD) 23
</TABLE>
<TABLE>
<CAPTION>
ACREAGE
- -------
<S> <C>
NET UNDEVELOPED 3,089,700
</TABLE>
Note: (1) Net 6:1, all production and reserve data restated to conform to
current BR reporting practices.
(2) As of December 31, 1998.
================================================================================
16
<PAGE> 17
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
OVERVIEW OF POCO PETROLEUMS
================================================================================
EXPLORATION AND DEVELOPMENT STRATEGY
[MAP]
WESTERN REGION
o MULTIZONE POTENTIAL
o DRILLING UP TO 10,000 FEET
o DRILLING UP TO 150 WELLS ANNUALLY
o MAINTAIN INVENTORY OF 200+
DEFINED DRILLING LOCATIONS
o 65% OF CURRENT PRODUCTION BASE
================================================================================
17
<PAGE> 18
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
OVERVIEW OF POCO PETROLEUMS
================================================================================
EXPLORATION AND DEVELOPMENT STRATEGY
[MAP]
NORTHERN REGION/
DEEP GAS
o WORLD-CLASS NATURAL GAS RESERVE POTENTIAL
o LESS COMPETITION
o EXCELLENT OPPORTUNITY FOR APPLICATION OF TECHNOLOGY
- 3D SEISMIC
- DEEP DRILLING
- SOUR GAS TREATING
o 20% OF CURRENT PRODUCTION BASE
o CHEVRON FARM-IN
================================================================================
18
<PAGE> 19
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
================================================================================
RANDY L. LIMBACHER
PRESIDENT & CEO
BURLINGTON RESOURCES NORTH AMERICA
================================================================================
<PAGE> 20
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
BR FOCUS AREAS
================================================================================
[MAP]
================================================================================
20
<PAGE> 21
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
BRNA: SAN JUAN
================================================================================
AVERAGE NET VOLUME
(MMCFPD)
[BAR CHART]
================================================================================
21
<PAGE> 22
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
BRNA: SAN JUAN
================================================================================
FUTURE STRATEGY
o 2 TCF EXPLOITATION POTENTIAL
o SIGNIFICANT EXPLORATION POTENTIAL
o MAINTAIN VOLUME AND RESERVE PROFILE
o GENERATE FREE CASH FLOW TO FUND BR GROWTH
================================================================================
22
<PAGE> 23
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
MADDEN FIELD
================================================================================
CROSS-SECTION
[GRAPH]
================================================================================
23
<PAGE> 24
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
MADDEN FIELD
===============================================================================
MADDEN FIELD - MADISON FORMATION
[GRAPH]
===============================================================================
24
<PAGE> 25
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- -------------------------------------------------------------------------------
GULF OF MEXICO DEEPWATER
===============================================================================
LEASEHOLD POSITION
[MAP]
===============================================================================
25
<PAGE> 26
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
ONSHORE GULF COAST
================================================================================
[MAP]
================================================================================
26
<PAGE> 27
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
NW EUROPEAN SHELF - EAST IRISH SEA
================================================================================
[MAP]
[GRAPH]
[CHART]
[MAP]
================================================================================
27
<PAGE> 28
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
NORTH AFRICA - ALGERIA
================================================================================
BLOCK 405 - MENZEL LEJMAT
[MAP]
================================================================================
28
<PAGE> 29
- --------------------------------------------------------------------------------
BURLINGTON
RESOURCES
- --------------------------------------------------------------------------------
NORTHERN SOUTH AMERICA - SURINAME
================================================================================
[MAP]
================================================================================
29
<PAGE> 30
- -------------------------------------------------------------------------------
BURLINGTON
RESOURCES
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PROJECTED SIGNIFICANT PRODUCTION MILESTONES
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[CHART]
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BURLINGTON
RESOURCES
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JOHN HAGALE
EXECUTIVE VP & CFO
BURLINGTON RESOURCES
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<PAGE> 32
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BURLINGTON
RESOURCES
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KEY STATISTICS
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(US$)
<TABLE>
<CAPTION>
BURLINGTON PRO FORMA POCO
RESOURCES POCO COMBINED CONTRIBUTION
---------- ---- --------- ------------
<S> <C> <C> <C> <C>
EQUITY MARKET VALUE(1) $ 8.1Bn $1.8Bn $ 9.9Bn 18%
ENTERPRISE VALUE $ 10.1Bn $2.5Bn $ 12.6Bn 20%
1998 CASH FLOW(1) $ 901MM $225MM $1,126MM 20%
1998 NET INCOME(1) $ 86MM $ 34MM $ 120MM 28%
1998 NET DAILY PRODUCTIONS(2)(3)
LIQUIDS (MBPD) 83 23 106 22%
NATURAL GAS (MMCFPD) 1,647 494 2,141 23%
TOTAL (MBODPD) 357 105 462 23%
PROVED RESERVES (MMBOE)(2)(3) 1,337 312 1,649 19%
% GAS 80% 77% 79%
</TABLE>
NOTES: (1) As reported; assumes BR closing price on 8/16/99 of $45.3125,
178.2 million BR shares outstanding, an exchange ratio of
0.250x, and C$1.4833 : US$1.00.
(2) Net 6:1 at 12/31/98; restated to conform to Burlington
Resources reporting practice.
(3) Poco is pro forma for the Pan East and Canrise acquisitions.
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BURLINGTON
RESOURCES
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VALUATION PARAMETERS
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YEAR-ENDED DECEMBER 31, 1998
RESERVES (NET 6:1):
- -------------------
PROVED 1.8 TCFE
PROVED AND PROBABLE 2.7 TCFE
OTHER ASSETS:
- -------------
UNDEVELOPED ACREAGE 3.1 MM NET ACRES
SEISMIC
2D 64,000 KM
3D 2,040 KM(2)
EXCESS GAS PROCESSING CAPACITY
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BURLINGTON
RESOURCES
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ACCRETIVE TO PER SHARE RESULTS(1)
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CFPS
(Standalone Data as per First Call)
1998 1999E 2000E
2.2% 6.1% 5.5%
Note: (1) Assumed exchange ratio: 0.250x. Pooling of interests accounting.
Excludes merger-related charges.
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BURLINGTON
RESOURCES
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COMBINED CAPITALIZATION
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(US$MM)(1)
<TABLE>
<CAPTION>
AS OF JUNE 30, 1999
---------------------------------------------
BURLINGTON
RESOURCES POCO COMBINED
---------- ---------- --------
<S> <C> <C> <C>
TOTAL DEBT $1,988 $ 743 $2,731
SHAREHOLDERS' EQUITY 2,988 821 3,809
------ ------ ------
BOOK CAPITALIZATION $4,976 $1,564 $6,540
====== ====== ======
FULLY DILUTED SHARES 178.2 39.3(2) 217.5
MKT. VALUE EQUITY(3) $ 8.1Bn $ 1.8Bn(4) $ 9.9Bn
ENTERPRISE VALUE(3) $ 10.1Bn $ 2.5Bn $ 12.6Bn
DEBT/BOOK CAP. 40% 48% 42%
DEBT/MKT. CAP. 19% 29% 21%
</TABLE>
Notes: (1) C$1.4833:US$1.00
(2) BR equivalent shares at 0.250x exchange ratio.
(3) BR closing price on 8/16/99 : $45.3125.
(4) Based on 0.250% exchange ratio.
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BURLINGTON
RESOURCES
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Forward-Looking Statements
THIS PRESENTATION CONTAINS PROJECTIONS AND OTHER FORWARD-LOOKING STATEMENTS
WITHIN THE MEANING OF SECTION 27A OF THE U.S. SECURITIES ACT OF 1933 AND SECTION
21E OF THE U.S. 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 PERIODIC REPORTS FILED
WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION.
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