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, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-10053
ORYX ENERGY COMPANY
(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
(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 August 1, 1996 was 104,712,028.
<PAGE>
ORYX ENERGY COMPANY
INDEX
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Statements of Income for the
Three and Six Months Ended June 30, 1996 and 1995.... 3
Condensed Consolidated Balance Sheets at June 30,
1996 and December 31, 1995........................... 4
Condensed Consolidated Statements of Cash Flows for
the Six Months Ended June 30, 1996 and 1995.......... 5
Notes to Condensed Consolidated Financial Statements. 6
Report of Independent Accountants.................... 10
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations............... 11
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K................. 14
SIGNATURE.................................................... 15
<PAGE>
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
ORYX ENERGY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three Months For the Six Months
(Millions of Dollars, Except Ended June 30 Ended June 30
Per Share Amounts) 1996 1995 1996 1995
(Unaudited)
Revenues
Oil and gas $ 256 $ 272 $ 504 $ 571
Other (3) 13 (4) 7
------- ------ ------ ------
253 285 500 578
------- ------ ------ ------
Costs and Expenses
Operating costs 57 91 115 182
Production taxes 36 30 62 68
Exploration costs 14 13 25 26
Depreciation, depletion and
amortization 66 72 129 146
General and administrative
expense 14 16 29 34
Interest and debt expense 27 39 56 79
Interest capitalized (4) (2) (7) (4)
------ ------ ------ ------
210 259 409 531
------ ------ ------ ------
Income Before Extraordinary
Item and Provision for Income
Taxes 43 26 91 47
Provision for Income Taxes (Note 3) 14 2 31 8
Remeasurement of Foreign Deferred
Tax (Note 3) 1 (1) - 1
------ ------ ------ ------
Income Before Extraordinary Item 28 25 60 38
Extraordinary Item (Note 4) - (14) - (14)
------ ------ ------ ------
Net Income $ 28 $ 11 $ 60 $ 24
====== ====== ====== ======
Income Per Share of
Common Stock:
Before extraordinary item $ .27 $ .25 $ .57 $ .38
Extraordinary item - (.14) - (.14)
------ ------ ------ ------
Net income $ .27 $ .11 $ .57 $ .24
====== ====== ====== ======
Weighted Average Number of Common
Shares Outstanding (in millions) 104.9 102.5 104.8 100.8
====== ====== ====== ======
(See Accompanying Notes)
<PAGE>
ORYX ENERGY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30 December 31
(Millions of Dollars) 1996 1995
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $ 13 $ 20
Accounts receivable and other current assets 166 161
------- -------
Total Current Assets 179 181
Properties, Plants and Equipment (Note 4) 1,469 1,426
Deferred Charges and Other Assets 62 59
------- -------
Total Assets $ 1,710 $ 1,666
======= =======
Liabilities and Shareholders' Deficit
Current Liabilities
Accounts payable $ 121 $ 106
Accrued liabilities 176 196
Current portion of long-term debt 16 152
------- -------
Total Current Liabilities 313 454
Long-Term Debt (Note 5) 1,150 1,051
Deferred Income Taxes 238 207
Deferred Credits and Other Liabilities 154 163
Shareholders' Deficit (Note 6)
Common stock, par value $1 per share 124 124
Additional paid-in capital 1,821 1,821
Accumulated deficit (994) (1,051)
------- -------
951 894
Less common stock in treasury, at cost;
19,026,858 and 19,247,112 shares in 1996
and 1995 (997) (1,004)
Loan to ESOP (99) (99)
------- -------
Shareholders' Deficit (145) (209)
------- -------
Total Liabilities and Shareholders' Deficit $ 1,710 $ 1,666
======= =======
The successful efforts method of accounting is followed.
(See Accompanying Notes)
<PAGE>
ORYX ENERGY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months
Ended June 30
(Millions of Dollars) 1996 1995
(Unaudited)
Cash and Cash Equivalents From Operating Activities
Net income $ 60 $ 24
Adjustments to reconcile net income to net
cash from operating activities:
Depreciation, depletion and amortization 129 146
Dry hole costs and leasehold impairment 10 8
Gain on sale of assets, net of taxes - (14)
Deferred income taxes 28 26
Extraordinary item - 14
Remeasurement of foreign deferred tax - 1
Other - 6
------ ------
227 211
Changes in working capital:
Accounts receivable and other current assets (5) (20)
Accounts payable and accrued liabilities - (40)
------ ------
Net Cash Flow Provided From Operating Activities 222 151
------ ------
Investing Activities
Capital expenditures (185) (129)
Proceeds from divestments, net of current taxes 4 123
Other (11) (7)
------ ------
Net Cash Flow Used For Investing Activities (192) (13)
------ ------
Financing Activities
Proceeds from borrowings 109 10
Repayments of long-term debt (146) (144)
------ ------
Net Cash Flow Used For Financing Activities (37) (134)
------ ------
Changes In Cash and Cash Equivalents (7) 4
Cash and Cash Equivalents at Beginning of Period 20 10
------ ------
Cash and Cash Equivalents at End of Period $ 13 $ 14
====== ======
(See Accompanying Notes)
<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, 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 six months ended June 30, 1996 are not
necessarily indicative of the results for the full year
1996.
Statements of Cash Flows
Amounts paid for interest and income taxes were as follows:
Six Months Ended June 30
1996 1995
(Millions of Dollars)
Interest paid (net of capitalized
amounts) $ 45 $ 84
Income taxes paid $ 2 $ 4
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 the fourth quarter of 1995, the Company recognized a net
$25 million ($16 million after-tax) charge for restructuring
comprised of a $4 million adjustment to the 1994
restructuring provision and a $29 million restructuring
provision for a plan to achieve further cost reductions.
<PAGE>
ORYX ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
2. Provision for Restructuring (continued)
An analysis of the 1995 restructuring liability follows:
1996 1996
Balance First Second Balance
at Quarter Quarter at
12/31/95 Activity Activity 6/30/96
(Millions of Dollars)
Termination and
associated costs* $ 9 $ 1 $ 6 $ 2
Office lease
obligation** 14 1 1 12
---- ---- ---- ----
Total $ 23 $ 2 $ 7 $ 14
==== ==== ==== ====
* Termination and associated cash costs are
primarily comprised of severance pay and associated
employee benefit costs for 250 operational and
administrative employees. Management expects to
complete such payments by the end of 1997.
** Represents contractual obligations existing prior
to the commitment date that will continue with no
economic benefit to the Company.
The costs of the 1994 restructuring were substantially
complete at 12/31/95. As a result of $1 million of
termination payments made during the first quarter of 1996,
costs of the 1994 restructuring were completed.
3. Income Taxes
The Company's provisions for income taxes for the three and
six months ended June 30, 1996 were $14 million and $31
million. 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.
<PAGE>
ORYX ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
3. Income Taxes (continued)
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 months ended June 30, 1996 decreased $1 million
while reported earnings for the three and six months ended
June 30, 1995 increased $1 million and decreased $1 million
from such remeasurement. Management believes that such non-
cash remeasurements 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. Properties, Plants and Equipment
At June 30, 1996 and December 31, 1995, the Company's
properties, plants and equipment; and related accumulated
depreciation, depletion and amortization were as follows:
June 30 December 31
1996 1995
(Millions of Dollars)
Gross investment ................. $5,271 $5,133
Less accumulated depreciation,
depletion and amortization ..... 3,802 3,707
------ ------
Net investment ................... $1,469 $1,426
====== ======
5. Long-Term Debt
Effective June 1, 1995, the Company replaced its $620
million revolving credit facility with a $500 million
revolving credit facility which matures on June 30, 1998.
In connection therewith, the Company recognized a non-cash
extraordinary loss of $14 million (net of $8 million of
income tax) from the write off of debt issuance costs
deferred under the $620 million revolving credit facility.
<PAGE>
ORYX ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
6. Shareholders' Deficit
Shares of the Company's preferred and common stocks
authorized, issued, outstanding and in treasury at June 30,
1996 and December 31, 1995 were as follows:
In
Authorized Issued Outstanding Treasury
(Thousands of Shares)
June 30, 1996
Preferred stock 15,000 - - -
Preference stock 7,741 - - -
Common stock 250,000 126,704 104,675 (19,027)
December 31, 1995
Preferred stock 15,000 - - -
Preference stock 7,741 - - -
Common stock 250,000 126,704 104,455 (19,247)
7. Subsequent Events
On July 11, 1996, the Company issued $150 million 8 3/8% notes
Due July 15, 2004. The net proceeds of $148.5 million were
used to refinance debt outstanding under the Company's
Revolving Credit Agreement, uncommitted lines of credit and
commercial paper. These vehicles had been utilized to
refinance $100 million of the Company's 9.30% Notes that
matured in May 1996 and $35 million of the Company's 6.05%
Medium Term Notes that matured in February 1996. The
Company has an additional $12 million of 8.92% Medium Term
Notes that will mature in the fourth quarter of 1996.
Borrowings to be refinanced with the net proceeds have a
final maturity of up to two years, and as of June 30, 1996
had a weighted average interest rate of 6.21%.
On July 30, 1996, the Company announced its agreement to
acquire all of Chevron's interests in the Ninian, Hutton,
Lyell and Murchison fields as well as Columba and
surrounding acreage in the U.K. North Sea for $140 million
and to assign 35 percent of the interests to Ranger Oil
Limited, subject to partner pre-emption. In the first half
of the year, the Company estimates that Chevron's total
interest being acquired would have generated about $46
million of pre-tax cash flow or $10.40 per barrel produced.
Proved reserves being acquired were about 50 million barrels
at 1/1/96, which equates to an acquisition cost of $2.80 per
barrel. Oryx operates three of the fields and expects to
become operator of Ninian. Through a combination of major
cost reductions and reservoir enhancements, the Company
expects to extend the productive lives of the fields it
operates, thereby recovering additional reserves and
generating incremental income and cash flow. Such actions
are expected to result in the addition of approximately 7
million barrels of proved reserves for Oryx on its pre-
transaction equity interest. The Company plans to fund its
share of the acquisition with internally generated cash flow
and, therefore, does not anticipate any permanent increase
in its $1.2 billion total debt level. The agreement is
subject to obtaining relevant consents and U.K. government
approvals. Closing is scheduled for later in the year.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors, Oryx Energy Company:
We have reviewed the accompanying condensed consolidated balance
sheet of Oryx Energy Company and its Subsidiaries as of June 30,
1996, the related condensed consolidated statements of income for
the three and six months ended June 30, 1996 and 1995, and the
related condensed consolidated statements of cash flows for the
six months ended June 30, 1996 and 1995. These financial
statements are the responsibility of the Company's management.
We conducted our review in accordance with standards established
by the American Institute of Certified Public Accountants. A
review of interim financial information consists principally of
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 conducted 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 accompanying condensed
consolidated financial statements 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 of Oryx Energy
Company and its Subsidiaries as of December 31, 1995, 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, 1996, 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, 1995, is fairly stated, in all
material respects, in relation to the consolidated balance sheet
from which it has been derived.
/s/ COOPERS & LYBRAND L.L.P.
Dallas, Texas
August 5, 1996
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
FINANCIAL CONDITION
The Company's cash and cash equivalents decreased by $7 million
over the six months ended June 30, 1996. The decrease was
comprised of $222 million of net cash flow provided from
operating activities, $192 million of net cash flow used for
investing activities and $37 million of net cash flow used for
financing activities. The $222 million in net cash flow provided
from operating activities consisted of $227 million in net cash
flow provided from operating activities before changes in current
assets and liabilities and $5 million used for changes in current
assets and liabilities. The $227 million in net cash flow
provided from operating activities before changes in current
assets and liabilities was primarily impacted by lower costs and
increased crude oil and natural gas prices. The $5 million of
net cash flow used for changes in current assets and liabilities
consisted of a $5 million increase in accounts receivable and
other current assets.
The $192 million in net cash flow used for investing activities
and the $37 million in net cash flow used for financing
activities are primarily due to cash uses of $185 million for
capital expenditures and $37 million from net decreases in debt.
In the fourth quarter of 1995, the Company incurred a net $25
million ($16 million after-tax) provision for restructuring
comprised of a $4 million adjustment to the 1994 restructuring
provision and a $29 million restructuring provision for a plan to
achieve further cost reductions. For an analysis of the
restructuring provision, see Note 2 to the Condensed Consolidated
Financial Statements.
On July 11, 1996, the Company issued $150 million 8 3/8% notes
Due July 15, 2004. The net proceeds of $148.5 million were used
to refinance debt outstanding under the Company's Revolving Credit
Agreement, uncommitted lines of credit and commercial paper.
These vehicles had been utilized to refinance $100 million of
the Company's 9.30% Notes that matured in May 1996 and $35
million of the Company's 6.05% Medium Term Notes that matured in
February 1996. The Company has an additional $12 million of
8.92% Medium Term Notes that will mature in the fourth quarter of
1996. Borrowings to be refinanced with the net proceeds have a
final maturity of up to two years, and as of June 30, 1996 had a
weighted average interest rate of 6.21%.
On July 30, 1996, the Company announced its agreement to
acquire all of Chevron's interests in the Ninian, Hutton, Lyell
and Murchison fields as well as Columba and surrounding acreage
in the U.K. North Sea for $140 million and to assign 35 percent
of the interests to Ranger Oil Limited, subject to partner pre-
emption. In the first half of the year, the Company estimates
that Chevron's interest being acquired would have generated about
$46 million of pre-tax cash flow or $10.40 per barrel produced.
Proved reserves being acquired were about 50 million barrels at
1/1/96, which equates to an acquisition cost of $2.80 per barrel.
Oryx operates three of the fields and expects to become operator
of Ninian. Through a combination of major cost reductions and
reservoir enhancements, the Company expects to extend the
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations - continued
FINANCIAL CONDITION (continued)
productive lives of the fields it operates, thereby recovering
additional reserves and generating incremental income and cash
flow. Such actions are expected to result in the addition of
approximately 7 million barrels of proved reserves for Oryx on
its pre-transaction equity interest. The Company plans to fund
its share of the acquisition with internally generated cash flow
and, therefore, does not anticipate any permanent increase in its
$1.2 billion total debt level. The agreement is subject to
obtaining relevant consents and U.K. government approvals.
Closing is scheduled for later in the year.
RESULTS OF OPERATIONS - SIX MONTHS
The Company's net income for the six months ended June 30, 1996
was $60 million, or $.57 per share, as compared to net income of
$24 million, or $.24 per share for the first six months of 1995.
Revenues for the six months were $500 million in 1996 versus $578
million in 1995. Year-to-date results for 1995 include a $14
million net gain on the sale of assets, a $14 million
extraordinary net charge for debt issue costs and a $1 million
charge for remeasurement of foreign deferred taxes.
Average worldwide net production of crude oil and condensate for
the six months ended June 30, 1996 was 100 thousand barrels daily
compared to average net production for the six months ended June
30, 1995 of 128 thousand barrels daily. Average net production
of crude oil and condensate was 44 thousand barrels daily in the
United States and 56 thousand barrels daily from foreign
locations during the six months ended June 30, 1996, compared to
48 thousand barrels daily in the United States and 80 thousand
barrels daily from foreign locations during the six months ended
June 30, 1995. The worldwide crude oil and condensate price for
the first six months of 1996 was $18.19 per barrel compared to
$16.69 per barrel for the first six months of 1995.
Average worldwide net production of natural gas was 479 million
cubic feet daily for the six months ended June 30, 1996, compared
to 578 million cubic feet in the six months ended June 30, 1995.
Average net production of natural gas was 471 million cubic feet
daily in the United States and 8 million cubic feet daily from
the United Kingdom in the first six months of 1996, compared to
494 million cubic feet daily in the United States and 84 million
cubic feet daily in the United Kingdom in the first six months of
1995. The worldwide price of natural gas for the first six
months of 1996 was $1.99 per thousand cubic feet compared to
$1.77 per thousand cubic feet for the first six months of 1995.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations - continued
RESULTS OF OPERATIONS - THREE MONTHS
The Company's net income for the quarter ended June 30, 1996 was
$28 million, or $.27 per share, as compared to net income of $11
million, or $.11 per share for the same quarter last year.
Revenues for the 1996 second quarter were $253 million versus
$285 million for the second quarter of 1995.
The 1996 second quarter includes a $1 million net loss from asset
sales and a $1 million charge for the remeasurement of foreign
deferred taxes. By comparison, the 1995 second quarter included
a $14 million net gain on sale of assets, an offsetting $14
million extraordinary net charge associated with refinancing and
a $1 million benefit for the remeasurement of foreign deferred
taxes.
Compared to the same quarter last year, worldwide liquids prices
increased by $2.09 per barrel and U.S. natural gas prices
increased by $.25 per thousand cubic feet. Daily production
rates for the quarter declined 15 percent as a result of asset
sales.
The Company's results continue to reflect the benefits of its
cost reduction efforts. Total costs and expenses were lower by
$49 million, or 19 percent, than in the second quarter of 1995.
Cash expenses were reduced by $44 million, a 24 percent decrease
from a year earlier.
Unit costs also continue to show significant improvements over
last year. Total costs and expenses per equivalent barrel were
$12.93 in the second quarter, a reduction of $.55 from a year
ago, while cash costs per equivalent barrel declined by $.95 to
$8.65.
Average worldwide net production of crude oil and condensate for
the three months ended June 30, 1996 was 99 thousand barrels
daily compared to average net production for the three months
ended June 30, 1995 of 119 thousand barrels daily. Average net
production of crude oil and condensate was 43 thousand barrels
daily in the United States and 56 thousand barrels daily from
foreign locations during the three months ended June 30, 1996,
compared to 47 thousand barrels daily in the United States and 72
thousand barrels daily from foreign locations in the second
quarter of 1995. The worldwide crude oil and condensate price in
the second quarter of 1996 was $19.05 per barrel compared to
$16.96 per barrel in the second quarter of 1995.
Average worldwide net production of natural gas was 485 million
cubic feet daily for the three months ended June 30, 1996,
compared to 553 million cubic feet daily in the three months
ended June 30, 1995. Average net production of natural gas was
476 million cubic feet daily in the United States and 9 million
cubic feet daily from the United Kingdom in the second quarter of
1996, compared to 485 million cubic feet daily in the United
States and 68 million cubic feet daily from the United Kingdom in
the second quarter of 1995. The worldwide price of natural gas
for the second quarter of 1996 was $1.96 per thousand cubic feet
compared to $1.76 per thousand cubic feet in the second quarter
of 1995.
<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.
27 Financial Data Schedule.
(b) Reports on Form 8-K:
The Company did not file any reports on Form 8-K
during the quarter ended June 30, 1996.
<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
(Executive Vice President, Finance,
and Chief Financial Officer)
DATE: August 12, 1996
<PAGE>
EXHIBIT 12
ORYX ENERGY COMPANY
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS
TO FIXED CHARGES - UNAUDITED (a)
(Millions of Dollars)
Three Months Six Months
Ended June 30 Ended June 30
1996 1996
RATIO OF EARNINGS TO FIXED CHARGES:
Fixed Charges:
Consolidated interest cost and debt expense $ 27 $ 56
Interest allocable to rental expense (b) 2 5
----- -----
Total $ 29 $ 61
===== =====
Earnings:
Consolidated income before provision for income
taxes $ 43 $ 91
Fixed charges 29 61
Interest capitalized (4) (7)
Amortization of previously capitalized interest 1 2
----- -----
Total $ 69 $ 147
===== =====
Ratio of Earnings to Fixed Charges 2.38 2.41
===== =====
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK
DIVIDEND REQUIREMENTS:
Fixed Charges:
Consolidated interest cost and debt expense $ 27 $ 56
Preferred stock dividend requirements - -
Interest allocable to rental expense (b) 2 5
----- -----
Total $ 29 $ 61
===== =====
Earnings:
Consolidated income before provision for income
taxes $ 43 $ 91
Fixed charges 29 61
Interest capitalized (4) (7)
Amortization of previously capitalized interest 1 2
----- -----
Total $ 69 $ 147
===== =====
Ratio of Earnings to Fixed Charges 2.38 2.41
===== =====
(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.
<PAGE>
EXHIBIT 15
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 August 5, 1996 on our review
of the interim condensed consolidated balance sheet of Oryx
Energy Company and its Subsidiaries as of June 30, 1996, the
related condensed consolidated statements of income for the three
and six months ended June 30, 1996 and 1995, and the related
condensed consolidated statements of cash flows for the six
months ended June 30, 1996 and 1995, 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 Equity and Deferred Compensation
Plan for Non-Employee Directors 333-03075
Oryx Energy Company Executive Variable Incentive Plan 333-03089
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.
/s/ COOPERS & LYBRAND L.L.P.
Dallas, Texas
August 5, 1996
<PAGE>
<TABLE> <S> <C>
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<LEGEND>
This schedule contains summary financial information extracted from SEC Form
10-Q and is qualified in its entirety by reference to such financial statements.
</LEGEND>
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<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 60
<EPS-PRIMARY> .57
<EPS-DILUTED> .57
</TABLE>