UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- --- SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1994
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OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 1-10053
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ORYX ENERGY COMPANY
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(Exact name of registrant as specified in its charter)
DELAWARE 23-1743284
---------- ------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
13155 NOEL ROAD, DALLAS, TEXAS 75240-5067
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(Address of principal executive offices) (Zip code)
(214) 715-4000
----------------
(Registrant's telephone number, including area code)
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
---
The number of shares of common stock, $1 par value,
outstanding on November 2, 1994 was 98,946,069. <PAGE>
<PAGE>
ORYX ENERGY COMPANY
INDEX
Page
----
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Statements of Income for the
Three and Nine Months Ended September 30, 1994 and 1993 3
Condensed Consolidated Balance Sheets at September 30,
1994 and December 31, 1993 4
Condensed Consolidated Statements of Cash Flows for
the Nine Months Ended September 30, 1994 and 1993 5
Notes to Condensed Consolidated Financial Statements 6
Report of Independent Accountants 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 15
SIGNATURE 16
<PAGE>
<PAGE> PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
ORYX ENERGY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three Months For the Nine Months
(Millions of Dollars, Ended September 30 Ended September 30
Except Per Share Amounts) 1994 1993 1994 1993
------ ------ ------ ------
(Unaudited)
REVENUES
Oil and gas $ 274 $ 272 $ 795 $ 835
Other (3) (8) (9) (10)
------- ------- ------- -------
271 264 786 825
------- ------- ------- -------
COSTS AND EXPENSES
Operating costs 94 87 279 268
Production taxes 37 29 82 90
Exploration costs 33 29 90 61
Depreciation, depletion
and amortization 107 100 320 291
General and admini-
strative expense 15 22 52 65
Interest and debt expense 41 42 121 123
Interest capitalized (2) (11) (9) (35)
Provision for
restructuring (Note 2) - - 161 -
------- ------- ------- -------
325 298 1,096 863
------- ------- ------- -------
Loss Before Benefit for
Income Taxes (54) (34) (310) (38)
Benefit for Income Taxes
(Note 3) (16) (7) (100) (5)
Provision for Change in
Tax Rate (Note 3) - 17 - 17
Remeasurement of Foreign
Deferred Tax (Note 3) 6 1 15 (2)
------- ------- ------- -------
Loss Before Extraordinary
Item (44) (45) (225) (48)
Extraordinary Item
(Note 4) 12 - 12 -
------- ------- ------- -------
NET LOSS (56) (45) (237) (48)
Less Preferred Dividend - 2 1 4
------- ------- ------- -------
Net Loss Attributable to
Common Stock $ (56) $ (47) $ (238) $ (52)
======= ======= ======= =======
Net Loss Per Share of
Common Stock:
Before extraordinary
item $ (.45) $ (.48) $(2.33) $ (.54)
Extraordinary item
(Note 4) (.12) - (.12) -
------- ------- ------- -------
Net Loss $ (.57) $ (.48) $(2.45) $ (.54)
======= ======= ======= =======
Cash Dividends Per Share
of Common Stock $ - $ .10 $ - $ .30
======= ======= ======= =======
Weighted Average Number
of Common Shares
Outstanding (millions
of shares) 97.0 97.1 97.0 97.1
======= ======= ======= =======
(See Accompanying Notes)<PAGE>
<PAGE>
ORYX ENERGY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30 December 31
(Millions of Dollars) 1994 1993
------ ------
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 14 $ 10
Accounts and notes receivable
and other current assets 204 195
-------- --------
Total Current Assets 218 205
Properties, Plants and Equipment
(Note 5) 3,029 3,333
Deferred Charges and Other Assets 124 86
-------- --------
Total Assets $ 3,371 $ 3,624
======== ========
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $ 115 $ 134
Accrued liabilities 232 162
Current portion of long-term debt 94 28
-------- --------
Total Current Liabilities 441 324
Long-Term Debt 1,724 1,741
Deferred Income Taxes 592 682
Deferred Credits and Other
Liabilities 174 201
Shareholders' Equity (Note 6)
Preference stock, par value
$1 per share, cumulative 7 7
Common stock, par value $1
per share 124 124
Additional paid-in capital 2,204 2,204
Retained earnings (deficit) (394) (155)
-------- --------
1,941 2,180
Less: Common stock in treasury,
at cost (1,401) (1,402)
Loan to ESOP (100) (102)
-------- --------
Shareholders' Equity 440 676
-------- --------
Total Liabilities and
Shareholders' Equity $ 3,371 $ 3,624
======== ========
The successful efforts method of accounting is followed.
(See Accompanying Notes)<PAGE>
<PAGE>
ORYX ENERGY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months
Ended September 30
(Millions of Dollars) 1994 1993
------ ------
(Unaudited)
CASH FROM OPERATING ACTIVITIES
Net loss $ (237) $ (48)
Adjustments to reconcile net loss to net
cash from operating activities:
Depreciation, depletion and amortization 320 291
Dry hole costs and leasehold impairment 53 20
Loss (gain) on sale of assets, net of
taxes 3 (1)
Deferred income taxes (40) 19
Remeasurement of foreign deferred tax 15 (2)
Provision for restructuring, net of
taxes 103 -
Extraordinary loss on debt extinguishment 12 -
Proceeds from interest rate hedging
activities - 29
Other (3) 12
------- -------
226 320
Changes in working capital:
Accounts and notes receivable and
other current assets (8) 16
Accounts payable and accrued
liabilities (28) (57)
------- -------
Net Cash Flow Provided From Operating
Activities 190 279
------- -------
INVESTING ACTIVITIES
Capital expenditures (201) (307)
Proceeds from divestments, net of
current taxes 3 30
Other (36) (8)
------- -------
Net Cash Flow Used For Investing Activities (234) (285)
------- -------
FINANCING ACTIVITIES
Proceeds from borrowings 143 91
Repayments of long-term debt (94) (55)
Cash dividends paid on common and
preference stock (1) (33)
------- -------
Net Cash Flow Provided From Financing
Activities 48 3
------- -------
Changes In Cash and Cash Equivalents 4 (3)
Cash and Cash Equivalents at Beginning
of Period 10 10
Cash and Cash Equivalents at End of Period $ 14 $ 7
======= =======
(See Accompanying Notes)
<PAGE>
<PAGE>
ORYX ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The accompanying condensed consolidated financial statements and
related notes of Oryx Energy Company and its subsidiaries
(hereinafter, unless the context otherwise requires, being
referred to as the Company) are presented in accordance with the
requirements of Form 10-Q and do not include all disclosures
normally required by generally accepted accounting principles or
those normally made in annual reports on Form 10-K. In
management's opinion, all adjustments necessary for a fair
presentation of the results of operations for the periods shown
have been made and are of a normal recurring nature. The results
of operations of the Company for the nine months ended September
30, 1994 are not necessarily indicative of the results for the
full year 1994.
Statements of Cash Flows
Amounts paid for interest and income taxes were as follows:
Nine Months Ended September 30
1994 1993
------ ------
(Millions of Dollars)
Interest paid (net of capitalized
amounts) $ 95 $ 72
Income taxes paid $ 4 $ 17
In accordance with Statement of Financial Accounting Standards
No. 95, "Statement of Cash Flows," non-cash transactions are not
reflected within the accompanying Condensed Consolidated
Statements of Cash Flows.
2. Provision for Restructuring
In March 1994, the Company adopted plans designed to achieve
significant future cost reductions (Restructuring). Components
of the Restructuring include asset disposals and staff
reductions. Associated therewith, the Company recognized a $161
million pretax ($103 million after tax) charge in the first
quarter of 1994. Management expects the Restructuring to result
in a minimum of $67 million annual cost reductions in 1995.
<PAGE>
<PAGE>
ORYX ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
2. Provision for Restructuring - continued
During 1993, the properties included in the divestment plan
accounted for less than three percent of the Company's worldwide
oil and gas production and at December 31, 1993, they accounted
for less than four percent of the Company's net investment in
properties, plants and equipment. The asset disposals will be
completed during the fourth quarter of 1994. Personnel
reductions associated with the program affected about 20-percent
of the Company's workforce.
3. Income Taxes
The Company's provisions for income taxes for the three and nine
months ended September 30, 1994 reflect benefits of $16 million
and $100 million. The Company's provisions for income taxes
for the three and nine months ended September 30, 1993 include a
charge of $17 million for the higher corporate income tax rate,
effective January 1, 1993, with the passage of the Revenue
Reconciliation Act of 1993. Foreign income tax provisions
included within the Company's consolidated provisions are
determined based upon the appropriate foreign statutory rates
which differ from the U.S. statutory rate.
The remeasurement provisions of Statement of Financial Accounting
standards No. 109, "Accounting for Income Taxes" (SFAS No. 109)
require the Company to remeasure its foreign currency denominated
deferred tax liabilities at current exchange rates. The reported
earnings of the Company for the three and nine months ended
September 30, 1994 decreased $6 million and $15 million while
reported earnings for the three and nine months ended September
30, 1993 decreased $1 million and increased $2 million from such
remeasurements. Management believes that such non-cash
remeasurement credits and debits distort current period economic
results and should be disregarded in analyzing the Company's
current business. Future economic results may also be distorted
because payment of the deferred tax liability is not expected to
occur in the near-term and it is likely that exchange rates will
fluctuate prior to the eventual settlement of the liability.
4. Extraordinary Item
On September 29, 1994, Standard and Poor's Rating Group
downgraded the Company's senior unsecured debt from BBB- to BB,
subordinated debt from BB+ to B+ and commercial paper to B from
A-3. The holders of the Company's senior ESOP notes ($100
million outstanding at September 30, 1994) have the right, as a
result of this downgrade, to require the Company to repay the
senior ESOP notes in full at par plus a makewhole premium which
is estimated to be $17 million ($12 million after taxes) and
subsequent to September 30, 1994 have exercised such rights. The
Company has recognized a $12 million extraordinary loss in the
third quarter of 1994 associated with the makewhole provisions of
the Company's senior ESOP notes. The Company intends to
refinance the senior ESOP notes in full.
5. Properties, Plants and Equipment
At September 30, 1994 and December 31, 1993, the Company's
properties, plants and equipment; and related accumulated
depreciation, depletion and amortization were as follows:
September 30 December 31
1994 1993
------ ------
(Millions of Dollars)
Gross investment .............. $ 6,515 $ 6,523
Less accumulated depreciation,
depletion and amortization .. 3,486 3,190
--------- --------
Net investment ................ $ 3,029 $ 3,333
========= ========
6. Shareholders' Equity
Shares of the Company's preferred and common stocks authorized,
issued, outstanding and in treasury at September 30, 1994 and
December 31, 1993 were as follows:
In
Authorized Issued Outstanding Treasury
----------- ------ ----------- --------
(Thousands of Shares)
September 30, 1994
Preferred stock 15,000 - - -
Preference stock 15,000 7,259 7,259 -
Common stock 250,000 126,704 96,946 (26,756)
December 31, 1993
Preferred stock 15,000 - - -
Preference stock 15,000 7,259 7,259 -
Common stock 250,000 126,704 96,932 (26,769)
<PAGE>
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors, Oryx Energy Company:
We have made a review of the condensed consolidated balance sheet
of Oryx Energy Company and its Subsidiaries as of September 30,
1994, the related condensed consolidated statements of income for
the three and nine months ended September 30, 1994 and 1993, and
the related condensed consolidated statements of cash flows for
the nine months ended September 30, 1994 and 1993, in accordance
with standards established by the American Institute of Certified
Public Accountants.
A review of interim financial information consists principally of
obtaining an understanding of the system for the preparation of
interim financial information, applying analytical review
procedures to financial data, and making inquiries of persons
responsible for financial and accounting matters. It is
substantially less in scope than an audit in accordance with
generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements
taken as a whole. Accordingly, we do not express such an
opinion.
Based on our review, we are not aware of any material
modifications that should be made to the condensed consolidated
financial statements referred to above for them to be in
conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the consolidated balance sheet as of December
31, 1993, and the related consolidated statements of income and
cash flows for the year then ended (not presented herein); and in
our report dated February 19, 1994, we expressed an unqualified
opinion on those consolidated financial statements. In our
opinion, the information set forth in the accompanying condensed
consolidated balance sheet as of December 31, 1993 is fairly
stated in all material respects in relation to the consolidated
balance sheet from which it has been derived.
Dallas, Texas
November 7, 1994
<PAGE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
FINANCIAL CONDITION
The Company's cash and cash equivalents increased by $4 million
over the nine months ended September 30, 1994. The increase was
comprised of $190 million of net cash flow provided from
operating activities, $234 million of net cash flow used for
investing activities and $48 million of net cash flow provided
from financing activities. The $190 million in net cash flow
provided from operating activities consisted of $226 million in
net cash flow provided from operating activities before changes
in current assets and liabilities and $36 million used for
changes in current assets and liabilities. The $226 million of
net cash flow provided from operating activities before changes
in current assets and liabilities was primarily impacted by lower
crude oil prices, higher operating costs, lower general and
administrative costs, lower capitalized interest and increased
crude oil volumes. The $36 million of net cash flow used for
changes in current assets and liabilities consisted of an $8
million increase in accounts receivable and other current assets
and a $28 million decrease in accounts payable and accrued
liabilities.
The $234 million in net cash flow used for investing activities
and the $48 million in net cash flow provided from financing
activities are primarily due to the use of $201 million of cash
for capital expenditures and a cash source of $49 million from
net increases in debt.
The Company enters into derivative financial instruments to hedge
foreign exchange rate, interest rate and oil and gas price
fluctuations. The Company, from time to time, enters into
foreign exchange contracts to hedge the impact of changes in
exchange rates on its receivables and payables denominated in
British pounds. These contracts expose the Company to market
risk from fluctuating exchange rates and to credit risk from
nonperformance by the counterparties to the contracts. The
Company has entered into interest rate futures agreements to
alter the floating rate portion of its underlying debt portfolio.
These agreements expose the Company to market rate risk from
increasing interest rates when LIBOR exceeds five percent per
year, and to credit risk from nonperformance by the
counterparties. The Company estimates that the annual market
rate risk from these agreements approximates $3 million after-tax
exposure for a one percent increase in rates when LIBOR exceeds
five percent. The Company, from time to time, enters into oil
and gas futures agreements to hedge the impact of price
fluctuations on anticipated crude oil and natural gas sales.
These agreements expose the Company to market risk in instances
where the applied settlement price is greater than the ceiling
price specified in the agreements, and to credit risk from
nonperformance by the counterparties. The counterparties to the
Company's foreign exchange contracts, interest rate futures
agreements and oil and gas futures agreements are major financial
institutions. The Company believes that losses from
nonperformance by counterparties are unlikely to occur.
In March 1994, the Company announced a major cost reduction
program. The program involves the consolidation of the Company's
U.S. business. The Company will also outsource certain
non-critical technical functions and reduce administrative
functions accordingly. The net result of these actions has been
a loss of approximately 300 jobs. The Company expects to achieve
a minimum $67 million cost reduction for the full year of 1995 as
a result of these actions. Some expense reductions will occur in
1994, although the specific amount and timing are difficult to
predict.
In the first quarter of 1994, the Company recorded a net charge
of $103 million for estimated losses on the sale of assets ($71
million), employee terminations and associated costs ($17
million) and postretirement benefit adjustments ($15 million).
As a result of the asset sales, estimated production for 1995
will be reduced by approximately five thousand equivalent barrels
per day, representing only about two percent of the worldwide
production for the first nine months of 1994.
An analysis of the 1994 provision for restructuring follows (in
millions of dollars):
Activity Balance
Initial through at
Provision 9/30/94 9/30/94
--------- -------- -------
Termination and Associated Costs* 27 18 9
Proceeds from Divestment of Assets** (40) (3) (37)
FAS 106 (Postretirement Costs)*** 23 20 3
Book Value of Assets to be Divested
and Lease Obligations** 151 48 103
----- ----- -----
Total Provision 161 83 78
===== ===== =====
<PAGE>
* Termination and associated cash costs are primarily comprised
of severence pay, associated employee benefit costs and moving
costs for 300 employees. Management expects to complete such
payments by the end of 1995.
** Proceeds from the divestment of assets and the book value of
such assets are a result of the Company's program to
consolidate its U.S. onshore position into 6 primary states.
The asset disposals will be completed during the fourth
quarter of 1994. In addition, under the terms of an operating
lease which expires in June 1995, the Company is obligated to
pay the lessor at the expiration of the lease the amount, if
any, by which the fair market value of the asset is less than
$37 million, not to exceed $31 million.
***Postretirement costs represent non-cash adjustments due to the
acceleration of a portion of the transition obligation as a
result of a reduction in the remaining expected future years
of service of active employees.
On September 29, 1994, Standard and Poor's Rating Group
downgraded the Company's senior unsecured debt from BBB- to BB,
subordinated debt from BB+ to B+ and commercial paper to B from
A-3. As a result of the downgrade, the Company recognized $12
million extraordinary loss associated with makewhole provisions
of the Company's senior ESOP notes. Subsequent to September 30,
1994, the holders of the Company's senior ESOP notes
(approximately $100 million principal amount outstanding at
September 30, 1994) exercised their right to require the Company
to repay the senior ESOP notes in full at par plus a makewhole
premium tied to prevailing rates of interest on U.S. Treasury
obligations. The Company intends to refinance the senior ESOP
notes in full.
The Company paid a cash dividend of $.10 per share on its $1 par
value common stock (Common Stock) in each of the first, second
and third quarters of 1993. In 1994, the Board of Directors
suspended the payment of dividends on Common Stock.
On November 2, 1994, the holders of the Company's Series B Junior
Cumulative Convertible Preference Stock (Series B Preference)
converted 2 million shares of Series B Preference into 2 million
shares of Common Stock in connection with the sale of such shares
in private transactions.
On September 1, 1994, the Company announced the signing of
purchase and sale agreements with Conoco. Oryx purchased
Conoco's North Sea interests in the Hutton, Lyell and Murchison
producing fields; its royalty interest in the undeveloped Viosca
Knoll 826 unit; and received a $40.4 million cash payment. In
return, Conoco purchased Oryx's interests in the undeveloped
North Sea Brittania field and the undeveloped Mississippi Canyon
243 unit in the Gulf of Mexico. Oryx plans to apply the $40.4
million cash contribution as well as the free cash flow generated
by the producing properties directly to debt reduction. The
effective date of the transaction is July 1, 1994. Closing is
subject to all the normal governmental approvals. Oryx's
longer-term outlook for committed capital expenditures has been
reduced considerably as a result of this transaction. Oryx
expects its share of expenditures on the Britannia development
would have been approximately $200 million prior to first
production around the turn of the century. Values of the
properties being exchanged, including the cash received by Oryx,
are considered to be comparable despite a different set of risk
profiles. The impact on Oryx's proved reserves is expected to
reflect purchases of approximately 25 million equivalent
developed barrels and sales of approximately 60 million
equivalent undeveloped barrels, affecting about 4% of proved
reserves. Following the transaction, Oryx will hold the largest
interest in Murchison, Hutton and Lyell and will seek approval to
become operator. This transaction provides Oryx additional
opportunities to implement cost savings and operating
efficiencies on these North Sea Fields.
On October 13, 1994, Robert P. Hauptfuhrer, Chairman and CEO of
the Company, announced his plans to retire effective December 1,
1994. The Board of Directors elected Robert L. Keiser, current
President and Chief Operating Officer, to succeed Hauptfuhrer on
that same date as the Company's Chairman, Chief Executive Officer
and President.
Looking forward to the fourth quarter, production volumes will
improve as a result of the recent asset exchange, exploration
spending levels will be lower and the sale of the Company's
previously identified onshore assets will be completed
culminating in $40 million in proceeds after taxes for the year.
As a result of the consolidation of its onshore business, the
Company expects to achieve the previously announced targeted $67
million annual cost reduction benefit in 1995.
RESULTS OF OPERATIONS - NINE MONTHS
The Company's net loss for the nine months ended September 30,
1994 was $237 million, or $2.45 per share, as compared to a net
loss of $48 million, or $.54 per share for the first nine months
of 1993. Revenues for the nine months were $786 million in 1994
versus $825 million in 1993. Year-to-date results include a $103
million restructuring charge, a $15 million charge for
remeasurement of foreign deferred income taxes, a $12 million
extraordinary charge associated with the ESOP notes, and $3
million of net losses from asset sales. By comparison, results
for the nine months ended September 30, 1993 include charges
primarily related to a change in corporate income tax rate of $20
million, a $2 million benefit for remeasurement of foreign
deferred income taxes and $1 million of net gains from asset
sales.
<PAGE>
Worldwide production of crude oil and condensate for the nine
months ended September 30, 1994 was 118 thousand barrels daily
compared to production for the nine months ended September 30,
1993 of 110 thousand barrels daily. Production of crude oil and
condensate was 49 thousand barrels daily in the United States and
69 thousand barrels daily from foreign locations during the nine
months ended September 30, 1994, compared to 56 thousand barrels
daily in the United States and 54 thousand barrels daily from
foreign locations during the nine months ended September 30,
1993. The worldwide crude oil and condensate price for the first
nine months of 1994 was $14.84 per barrel compared to $17.07 per
barrel for the first nine months of 1993.
Worldwide production of natural gas was 597 million cubic feet
daily for the nine months ended September 30, 1994, compared to
604 million cubic feet in the nine months ended September 30,
1993. Production of natural gas was 538 million cubic feet daily
in the United States and 59 million cubic feet daily from the
United Kingdom in the first nine months of 1994, compared to 523
million cubic feet daily in the United States and 81 million
cubic feet daily in the United Kingdom in the first nine months
of 1993. The worldwide price of natural gas for the first nine
months of 1994 and 1993 was $1.94 and $1.95 per thousand cubic
feet.
RESULTS OF OPERATIONS - THREE MONTHS
The Company reported a net loss of $56 million, or $.57 per
share, for the quarter ended September 30, 1994 compared to a net
loss of $45 million, or $.48 per share, for the same quarter last
year. Revenues for the 1994 third quarter were $271 million
versus $264 million for the third quarter of 1993.
The current quarter includes a $12 million extraordinary charge
associated with the Company's senior ESOP notes, a $6 million
charge for remeasurement of foreign deferred income taxes and $1
million of net losses from assets sales. By comparison, the
third quarter of 1993 includes charges of $20 million primarily
relating to a change in the corporate income tax rate.
Compared to the same quarter last year, crude oil volumes
increased by 6 percent or 7 thousand barrels per day as a result
of strong U.K. production which includes one month of additional
volumes from a recent asset exchange with Conoco. Natural gas
volumes increased by 2 percent. Worldwide crude oil prices were
approximately the same as the prior year while natural gas prices
decreased by 11 percent or $.22 per mcf. Total costs and
expenses increased primarily as a result of increased production
and lower capitalized interest, partially offset by lower
administrative expenses.
Comparing the 1994 third quarter with the previous quarter, oil
volumes increased by 6 percent as a result of higher U.K.
production and natural gas volumes increased by 3 percent.
Worldwide oil prices increased by 6 percent or $.84 per barrel
while gas prices decreased by 11 percent or $.21 per mcf. Total
costs and expenses increased primarily as the result of increased
production, higher production taxes and lower capitalized
interest, partially offset by lower administrative costs.
Worldwide production of crude oil and condensate for the three
months ended September 30, 1994 was 123 thousand barrels daily
compared to production for the three months ended September 30,
1993 of 116 thousand barrels daily. Production of crude oil and
condensate was 48 thousand barrels daily in the United States and
75 thousand barrels daily from foreign locations during the three
months ended September 30, 1994, compared to 56 thousand barrels
daily in the United States and 60 thousand barrels daily from
foreign locations in the third quarter of 1993. The worldwide
crude oil and condensate price in the third quarter of 1994 was
$15.91 per barrel compared to $15.85 per barrel in the third
quarter of 1993.
Worldwide production of natural gas was 583 million cubic feet
daily for the three months ended September 30, 1994, compared to
571 million cubic feet daily in the three months ended September
30, 1993. Production of natural gas was 542 million cubic feet
daily in the United States and 41 million cubic feet daily from
the United Kingdom in the third quarter of 1994, compared to 521
million cubic feet daily in the United States and 50 million
cubic feet daily from the United Kingdom in the third quarter of
1993. The worldwide price of natural gas for the third quarter of
1994 was $1.74 per thousand cubic feet compared to $1.96 per
thousand cubic feet in the third quarter of 1993.
<PAGE>
<PAGE>
PART II
OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
12 Computation of Consolidated Ratio of Earnings to
Fixed Charges.
*15 Accountant's letter regarding unaudited interim
financial information.
28 Awareness letter of Coopers & Lybrand L.L.P.
* Attached as page 9 to this Form 10-Q.
b) Reports on Form 8-K:
The Company did not file any reports on Form 8-K during
the quarter ended September 30, 1994.
<PAGE>
<PAGE>
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.
ORYX ENERGY COMPANY
BY /s/ E. W. Moneypenny
----------------------
E. W. Moneypenny
(Senior Vice President, Finance and Chief Financial Officer)
DATE November 14, 1994
ORYX ENERGY COMPANY
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS
TO FIXED CHARGES - UNAUDITED (a)
(Millions of Dollars)
Three Months
Ended September 30 Ended September 30
1994 1994
------- --------
RATIO OF EARNINGS TO FIXED
Fixed Charges:
Consolidated interest cost
and debt expense $ 41 $ 121
Interest allocable to rental
expense (b) 4 10
Total $ 45 $ 131
Earnings:
Consolidated loss before
provision for income taxes $ (54) $(310)
Fixed charges 45 131
Interest capitalized (2) (9)
Amortization of previously
capitalized interest 4 10
------- -------
Total $ (7) $(178)
====== ======
Ratio of Earnings to Fixed
Charges (c) ====== ======
RATIO OF EARNINGS TO FIXED
CHARGES AND PREFERRED STOCK
DIVIDEND REQUIREMENTS:
Fixed Charges:
Consolidated interest cost
and debt expense $ 41 $ 121
Preferred stock dividend
requirements - 1
Interest allocable to rental
expense (b) 4 10
------ ------
Total $ 45 $ 132
====== ======
Earnings:
Consolidated loss before
provision for income taxes $ (54) $(310)
Fixed charges 45 132
Interest capitalized (2) (9)
Amortization of previously
capitalized interest 4 10
------ ------
Total $ (7) $(177)
====== ======
Ratio of Earnings to Fixed
Charges (c) ====== ======
(a) The consolidated financial statements of Oryx Energy Company
include the accounts of all subsidiaries (more than 50 percent
owned and/or controlled).
(b) Represents one-third of total operating lease rental expense
which is that portion deemed to be interest.
(c) Since earnings for the three and nine months ended September
30 were less than zero, the ratio of earnings to fixed
charges and earnings to fixed charges and preferred stock
dividend requirements are not meaningful and accordingly,
have not been presented. Earnings for the three and nine
months ended September 30 were inadequate to cover fixed
charges and preferred stock dividend requirements by $52
million and $309 million.
Securities and Exchange Commission
450 Fifth Street, Northwest
Washington, D.C. 20549
Attn: Document Control
Re: Oryx Energy Company Form 10-Q
We are aware that our report dated November 7, 1994 on our review of the
interim condensed consolidated balance sheet of Oryx Energy Company and
its Subsidiaries as of September 30, 1994, the related condensed
consolidated statements of income for the three and nine months ended
September 30, 1994 and 1993, and the related condensed consolidated
statements of cash flows for the nine months ended September 30, 1994
and 1993, included in this Form 10-Q, is incorporated by reference
in the following registration statements:
Registration No.
On Form S-3 for:
Oryx Energy Company $500,000,000 Debt
Securities; Preferred Stock; and Common Stock 33-45611
Oryx Energy Company $600,000,000 Debt Securities 33-33361
Oryx Energy Company 7,259,394 shares of Common
Stock 33-36799
On Form S-8 for:
Oryx Energy Company 1992 Long-Term Incentive Plan 33-42695
Oryx Energy Company Long-Term Incentive Plan 33-25032
Oryx Energy Company Capital Accumulation Plan 33-24918
Oryx Energy Company Executive Long-Term Incentive
Plan 33-25031
Pursuant to Rule 436(c) under the Securities Act of 1933, this report
should not be considered a part of the registration statement prepared
or certified by us within the meaning of Sections 7 and 11 of that Act.
Dallas, Texas
November 14, 1994
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