<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
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)
(972) 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 July 31, 1998 was 106,235,079.
<PAGE>
Page 2
ORYX ENERGY COMPANY
INDEX
<TABLE>
Page
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Statements of Income for the
Three and Six Months Ended June 30, 1998 and 1997.... 3
Condensed Consolidated Balance Sheets at June 30,
1998 and December 31, 1997.............................. 4
Condensed Consolidated Statements of Cash Flows for
the Six Months Ended June 30, 1998 and 1997............. 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 4. Submission of Matters to a Vote of Security Holders.... 14
Item 6. Exhibits and Reports on Form 8-K....................... 15
SIGNATURE........................................................ 16
<PAGE>
Page 3
PART I
FINANCIAL INFORMATION
</TABLE>
<TABLE>
<CAPTION>
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) 1998 1997 1998 1997
(Unaudited)
<S> <C> <C> <C> <C>
Revenues
Oil and gas $ 204 $ 276 $ 419 $ 618
Other 9 (2) 17 (9)
----- ----- ----- -----
213 274 436 609
----- ----- ----- -----
Costs and Expenses
Operating costs 53 67 109 136
Production taxes 12 41 23 80
Exploration costs 20 17 69 31
Depreciation, depletion and
amortization 72 74 142 153
General and administrative
expense 14 15 27 30
Interest and debt expense 29 28 56 55
Interest capitalized (6) (3) (11) (8)
----- ----- ----- -----
194 239 415 477
----- ----- ----- -----
Income Before Provision for
Income Taxes 19 35 21 132
Provision for Income Taxes
(Note 3) 4 10 2 45
Remeasurement of Foreign Deferred
Tax (Note 3) (1) 2 - (2)
----- ----- ----- -----
Net Income $ 16 $ 23 $ 19 $ 89
===== ===== ===== =====
Basic Net Income Per Share of
Common Stock (Note 4) $.15 $.22 $.18 $.85
===== ===== ===== =====
Diluted Net Income Per Share of
Common Stock (Note 4) $.15 $.22 $.18 $.84
===== ===== ===== =====
Weighted Average Number of
Common Shares Outstanding
(in millions) 106.2 105.4 106.1 105.3
===== ===== ===== =====
<FN>
(See Accompanying Notes)
</TABLE>
<PAGE>
Page 4
ORYX ENERGY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30 December 31
(Millions of Dollars) 1998 1997
(Unaudited)
<S> <C> <C>
Assets
Current Assets
Cash and cash equivalents $ 11 $ 10
Accounts receivable and
other current assets 228 228
------- --------
Total Current Assets 239 238
Properties, Plants and Equipment (Note 5) 1,971 1,811
Deferred Charges and Other Assets 59 59
------- --------
Total Assets $2,269 $2,108
======= =======
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $ 147 $ 121
Accrued liabilities 230 257
Current portion of long-term debt 19 4
------- -------
Total Current Liabilities 396 382
Long-Term Debt 1,319 1,184
Deferred Income Taxes 249 235
Deferred Credits and Other Liabilities 121 150
Shareholders' Equity (Note 6)
Common stock, par value $1 per share 124 124
Additional paid-in capital 1,821 1,821
Accumulated deficit (728) (740)
------- -------
1,217 1,205
Less: Common stock in treasury, at cost (939) (952)
Loan to ESOP (94) (96)
------- -------
Shareholders' Equity 184 157
------- -------
Total Liabilities and
Shareholders' Equity $2,269 $2,108
======= =======
<FN>
The successful efforts method of accounting is followed.
(See Accompanying Notes)
</TABLE>
<PAGE>
Page 5
ORYX ENERGY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Six Months
Ended June 30
(Millions of Dollars) 1998 1997
(Unaudited)
<S> <C> <C>
Cash and Cash Equivalents From Operating Activities
Net income $ 19 $ 89
Adjustments to reconcile net income to net
cash from operating activities:
Depreciation, depletion and amortization 142 153
Dry hole costs and leasehold impairment 35 10
Gain on sale of assets, net of taxes (13) -
Deferred income taxes 12 16
Remeasurement of foreign deferred tax - (2)
Other (1) 5
----- -----
194 271
Changes in working capital:
Accounts receivable and other
current assets - 31
Accounts payable and accrued liabilities (11) (15)
----- -----
Net Cash Flow Provided From Operating Activities 183 287
----- -----
Investing Activities
Capital expenditures (331) (238)
Proceeds from divestments, net of current taxes 13 1
Other (16) (42)
----- -----
Net Cash Flow Used For Investing Activities (334) (279)
----- -----
Financing Activities
Proceeds from borrowings 176 105
Repayments of long-term debt (27) (122)
Proceeds from sale of treasury stock 3 6
----- -----
Net Cash Flow Provided From (Used For)
Financing Activities 152 (11)
----- -----
Changes In Cash and Cash Equivalents 1 (3)
Cash and Cash Equivalents at Beginning of Period 10 9
----- -----
Cash and Cash Equivalents at End of Period $ 11 $ 6
===== =====
<FN>
(See Accompanying Notes)
</TABLE>
<PAGE>
Page 6
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, 1998 are not
necessarily indicative of the results for the full year
1998. Certain items in the period ended June 30, 1997 have
been reclassified to conform to the 1998 presentation.
The Company adopted Statement of Financial Accounting
Standards (SFAS) No. 128, "Earnings per Share," effective
January 1, 1997. As a result, earnings per share for the
three and six months ended June 30, 1997 have been restated
to conform to the provisions of this statement. In addition,
the Company adopted SFAS No. 130, "Reporting Comprehensive
Income," effective January 1, 1998. Total comprehensive
income and net income are identical for the three and six
months ended June 30, 1998.
In June 1998, the Financial Accounting Standards Board
(FASB) issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities," effective for fiscal
years beginning after June 15, 1999. SFAS 133 requires that
all derivative instruments be recorded on the balance sheet
at their fair value and net gains and losses on derivative
instruments be recognized initially in comprehensive income.
The Company has not yet determined the impact that the
adoption of SFAS 133 will have on its earnings or statement
of financial position.
Statements of Cash Flows
Amounts paid for interest and income taxes were as follows:
<TABLE>
<CAPTION>
Six Months Ended June 30
1998 1997
(Millions of Dollars)
<S> <C> <C>
Interest paid (net of capitalized
amounts) $ 36 $ 58
Income taxes paid $ 1 $ 41
</TABLE>
<PAGE>
Page 7
ORYX ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
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.
The costs of the 1995 restructuring were complete at
December 31, 1996 except for costs associated with an office
lease obligation which existed prior to the commitment date
that has no economic benefit to the Company. During the six
months ended June 30, 1998, $1 million of costs associated
with this lease were incurred, and at June 30, 1998, $9
million of this provision remains.
3. Income Taxes
The Company's provisions for income taxes for the three and
six months ended June 30, 1998 were $4 million and $2
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.
Deferred income taxes are provided to reflect the tax
consequences in future periods of differences between
financial statements and tax basis of assets and liabilities
at period end in accordance with Statement of Financial
Accounting Standards No. 109, "Accounting for Income Taxes"
(SFAS No. 109). The remeasurement provisions of SFAS No.
109 have affected the reported earnings of the Company.
Earnings for the three months ended June 30, 1998 increased
$1 million while earnings for the three and six months ended
June 30, 1997 decreased $2 million and increased $2 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.
<PAGE>
Page 8
ORYX ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
4. Net Income Per Share
Following is a reconciliation of the numerators and
denominators of the basic and diluted earnings per share
(EPS) computations for the three and six months ended June
30, 1998 and 1997 (in millions of dollars and shares, except
per share amounts).
<TABLE>
<CAPTION>
Three Months Six Months
Ended June 30 Ended June 30
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Basic EPS:
Numerator, Net Income $ 16 $ 23 $ 19 $ 89
Denominator, Common Shares
Outstanding 106.2 105.4 106.1 105.3
----- ----- ----- -----
Basic EPS $ .15 $ .22 $ .18 $ .85
===== ===== ===== =====
Diluted EPS:
Numerator, Net Income $ 16 $ 23 $ 19 $ 89
Potential Common Shares:
Debentures* - - - -
----- ----- ----- -----
Total Net Income $ 16 $ 23 $ 19 $ 89
----- ----- ----- -----
Denominator, Common Shares
Outstanding 106.2 105.4 106.1 105.3
Potential Common Shares:
Common Stock Options** .3 .3 .4 .4
Debentures* - - - -
----- ----- ----- -----
Total 106.5 105.7 106.5 105.7
----- ----- ----- -----
Diluted EPS $ .15 $ .22 $ .18 $ .84
===== ===== ===== =====
</TABLE>
* The Company has reserved 5,111,438 shares of
Common Stock for issuance to the owners of its 7 1/2%
Convertible Subordinated Debentures due 2014
(Debentures). The Debentures were not included in the
computation of diluted shares since they have an anti-
dilutive effect for all periods presented.
** Common Stock options to purchase 2.3 million and
2.4 million shares of Common Stock were outstanding but
not included in the computation of diluted EPS for the
three months ended June 30, 1998 and 1997 and Common
Stock options to purchase 2.3 million shares of Common
Stock were outstanding but not included in the
computation of diluted EPS for the six months ended
June 30, 1998 and 1997 because the various exercise
prices of the options were greater than the average
market price of the common shares.
<PAGE>
Page 9
ORYX ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(continued)
5. Properties, Plants and Equipment
At June 30, 1998 and December 31, 1997, the Company's
properties, plants and equipment; and related accumulated
depreciation, depletion and amortization were as follows:
<TABLE>
<CAPTION>
June 30 December 31
1998 1997
(Millions of Dollars)
<S> <C> <C>
Gross investment .................$5,915 $5,626
Less accumulated depreciation,
depletion and amortization ..... 3,944 3,815
------ ------
Net investment ...................$1,971 $1,811
====== ======
</TABLE>
6. Shareholders' Equity
Shares of the Company's preferred and common stocks
authorized, issued, outstanding and in treasury at June 30,
1998 and December 31, 1997 were as follows:
<TABLE>
<CAPTION>
In
Authorized Issued Outstanding Treasury
(Thousands of Shares)
<S> <C> <C> <C> <C>
June 30, 1998
Preferred stock 15,000 - - -
Preference stock 7,741 - - -
Common stock 250,000 126,704 106,232 (17,470)
December 31, 1997
Preferred stock 15,000 - - -
Preference stock 7,741 - - -
Common stock 250,000 126,704 105,982 (17,720)
</TABLE>
7. Subsequent Event
On July 28, 1998, in response to the current low oil price
environment, the Company announced its intention to sell
approximately $35 million of its U.S. onshore properties and
to reduce payroll related expenses by approximately 20
percent. Reductions are being made primarily in the U.S.
onshore and staff groups. A special reserve for employee
terminations will be established during the third quarter of
1998.
<PAGE>
Page 10
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,
1998, the related condensed consolidated statements of income for
the three and six months ended June 30, 1998 and 1997, and the
related condensed consolidated statements of cash flows for the
six months ended June 30, 1998 and 1997. 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 as of December
31, 1997, and the related consolidated statements of income and
cash flows for the year then ended (not presented herein); and in
our report dated February 17, 1998, 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, 1997, is fairly
stated, in all material respects, in relation to the consolidated
balance sheet from which it has been derived.
/s/PricewaterhouseCoopers LLP
Dallas, Texas
August 10, 1998
<PAGE>
Page 11
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 $1 million
over the six months ended June 30, 1998. The increase was
comprised of $183 million of net cash flow provided from
operating activities, $334 million of net cash flow used for
investing activities and $152 million of net cash flow provided
from financing activities. The $183 million in net cash flow
provided from operating activities consisted of $194 million in
net cash flow provided from operating activities before changes
in current assets and liabilities and $11 million used for
changes in current assets and liabilities. The $194 million in
net cash flow provided from operating activities before changes
in current assets and liabilities was primarily impacted by lower
revenues, particularly from lower crude oil prices. The $11
million of net cash flow used for changes in current assets and
liabilities consisted of an $11 decrease in accounts payable and
accrued liabilities.
The $334 million in net cash flow used for investing activities
and the $152 million in net cash flow provided from financing
activities are primarily due to cash uses of $331 million for
capital expenditures and $149 million from net increases in debt.
The increases in debt are primarily due to lower crude oil prices
in the first six months of 1998.
As of July 24, 1998, the Company has entered into collar
agreements to hedge approximately 22 percent of its 1998 crude
production at an average floor price of $18.20 West Texas
Intermediate (WTI) per barrel and an average ceiling price of
$19.25 WTI per barrel. Approximately 43 percent of its estimated
1998 U.S. gas production is hedged using collars at an average
floor price of $2.25 Henry Hub (HH) per mmbtu and an average
ceiling price of $2.40 HH per mmbtu.
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. See Note 2 to the Condensed
Consolidated Financial Statements.
In June 1998, the Financial Accounting Standards Board (FASB)
issued SFAS No. 133, "Accounting for Derivative Instruments and
Hedging Activities," effective for fiscal years beginning after
June 15, 1999. SFAS 133 requires that all derivative instruments
be recorded on the balance sheet at their fair value and net
gains and losses on derivative instruments be recognized
initially in comprehensive income. The Company has not yet
determined the impact that the adoption of SFAS 133 will have on
its earnings or statement of financial position.
On July 28, 1998, in response to the current low oil price
environment, the Company announced its intention to sell
approximately $35 million of its U.S. onshore properties and to
reduce payroll related expenses by approximately 20 percent.
Reductions are being made primarily in the U.S. onshore and
staff
<PAGE>
Page 12
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations - continued
FINANCIAL CONDITION (continued)
groups. A special reserve for employee terminations will be
established during the third quarter of 1998. The Company
previously announced its intention to reduce its 1998 exploration
and development investment plans by approximately 17 percent.
RESULTS OF OPERATIONS - SIX MONTHS
The Company's net income for the six months ended June 30, 1998
was $19 million, or $.18 per share, as compared to net income of
$89 million, or $.85 per share for the first six months of 1997.
Revenues for the six months were $436 million in 1998 versus $609
million in 1997.
Average worldwide net production of crude oil and condensate for
the six months ended June 30, 1998 was 107 thousand barrels daily
compared to average net production for the six months ended June
30, 1997 of 115 thousand barrels daily. Average net production
of crude oil and condensate was 46 thousand barrels daily in the
United States and 61 thousand barrels daily from foreign
locations during the six months ended June 30, 1998, compared to
43 thousand barrels daily in the United States and 72 thousand
barrels daily from foreign locations during the six months ended
June 30, 1997. The worldwide crude oil and condensate price for
the first six months of 1998 was $13.74 per barrel compared to
$18.87 per barrel for the first six months of 1997.
Average worldwide net production of natural gas was 396 million
cubic feet daily for the six months ended June 30, 1998, compared
to 519 million cubic feet in the six months ended June 30, 1997.
The reduction in U.S. natural gas production resulted primarily
from field declines, lower than expected drilling results and
performance issues at certain fields. Average net production of
natural gas was 383 million cubic feet daily in the United States
and 13 million cubic feet daily from the United Kingdom in the
first six months of 1998, compared to 509 million cubic feet
daily in the United States and 10 million cubic feet daily in the
United Kingdom in the first six months of 1997. The worldwide
price of natural gas for the first six months of 1998 was $2.14
per thousand cubic feet compared to $2.41 per thousand cubic feet
for the first six months of 1997.
RESULTS OF OPERATIONS - THREE MONTHS
The Company's net income for the quarter ended June 30, 1998 was
$16 million, or $.15 per share, as compared to net income of $23
million, or $.22 per share for the same quarter last year.
Revenues for the 1998 second quarter were $213 million versus
$274 million for the 1997 second quarter.
The 1998 second quarter includes an $8 million net gain on the
sale of assets and a $1 million benefit for remeasurement of
foreign deferred taxes. By
<PAGE>
Page 13
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations - continued
RESULTS OF OPERATIONS - THREE MONTHS (continued)
comparison, the 1997 second quarter included a $2 million charge
for remeasurement of foreign deferred taxes.
Compared to the same quarter last year, worldwide crude oil
prices decreased by $4.78 per barrel, or 27 percent, and U.S.
natural gas prices increased by $.06 per thousand cubic feet, or
3 percent. Crude oil volumes decreased by 3 thousand barrels per
day and natural gas volumes decreased 117 million cubic feet per
day. The reduction in U.S. natural gas production resulted
primarily from field declines, lower than expected drilling
results and performance issues at certain fields.
Comparing the second quarter with the same quarter last year,
total costs improved by $1.16 per equivalent barrel. U.K.
production taxes were lower primarily due to lower oil prices.
In addition, operating costs were reduced through lower cost
production from Neptune and continued cost savings achieved in
the U.K.
Average worldwide net production of crude oil and condensate for
the three months ended June 30, 1998 was 108 thousand barrels
daily compared to average net production for the three months
ended June 30, 1997 of 111 thousand barrels daily. Average net
production of crude oil and condensate was 45 thousand barrels
daily in the United States and 63 thousand barrels daily from
foreign locations during the three months ended June 30, 1998,
compared to 46 thousand barrels daily in the United States and 65
thousand barrels daily from foreign locations in the second
quarter of 1997. The worldwide crude oil and condensate price in
the second quarter of 1998 was $13.05 per barrel compared to
$17.83 per barrel in the second quarter of 1997.
Average worldwide net production of natural gas was 397 million
cubic feet daily for the three months ended June 30, 1998,
compared to 514 million cubic feet daily in the three months
ended June 30, 1997. Average net production of natural gas was
385 million cubic feet daily in the United States and 12 million
cubic feet daily from the United Kingdom in the second quarter of
1998, compared to 505 million cubic feet daily in the United
States and 9 million cubic feet daily from the United Kingdom in
the second quarter of 1997. The worldwide price of natural gas
for the second quarter of 1998 was $2.12 per thousand cubic feet
compared to $2.06 per thousand cubic feet in the second quarter
of 1997.
<PAGE>
Page 14
PART II
OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
On May 7, 1998, the Annual Meeting of Shareholders of Oryx
Energy Company was held to vote on proposals as follows:
<TABLE>
<CAPTION>
(a) To elect three directors to Class I of the
Company's Board of Directors.
<S> <C> <C> <C> <C>
David C. Robert B. Charles H.
Genever-Watling Gill Pistor, Jr.
Affirmative 88,480,874 88,442,263 88,363,452
Negative - - -
Abstained - - -
Withheld 1,076,363 1,114,974 1,193,785
Broker non-votes - - -
Shares without
executed
proxies
and not
present
for vote 16,555,912 16,555,912 16,555,912
----------- ----------- -----------
Shares entitled
to vote 106,113,149 106,113,149 106,113,149
=========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
(b) To approve the appointment of Coopers &
Lybrand L.L.P. as independent accountants for the
fiscal year 1998.
<S> <C> <C>
Affirmative 88,851,350
Negative 363,677
Abstained 342,210
Withheld -
Broker non-votes -
Shares without executed
proxies and not present
for vote 16,555,912
-----------
Shares entitled to vote 106,113,149
===========
<PAGE>
Page 15
PART II
OTHER INFORMATION - Continued
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
12 Computation of Consolidated Ratio of Earnings
to Fixed Charges and Earnings to Fixed Charges and
Preferred Stock Dividend Requirements.
* 15 Accountant's letter regarding unaudited
interim financial information.
27 Financial Data Schedule for the year ended June
30, 1998.
27.1 Restated Financial Data Schedule for the year
ended June 30, 1997.
* Attached as page 18 to the Form 10-Q.
(b) Reports on Form 8-K:
The Company did not file any reports on Form 8-K
during the quarter ended June 30, 1998.
<PAGE>
Page 16
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 13, 1998
<PAGE>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<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>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 11
<SECURITIES> 0
<RECEIVABLES> 205
<ALLOWANCES> 0
<INVENTORY> 1
<CURRENT-ASSETS> 239
<PP&E> 5915
<DEPRECIATION> (3944)
<TOTAL-ASSETS> 2269
<CURRENT-LIABILITIES> 396
<BONDS> 1319
0
0
<COMMON> 1945
<OTHER-SE> (1761)
<TOTAL-LIABILITY-AND-EQUITY> 2269
<SALES> 419
<TOTAL-REVENUES> 436
<CGS> 274
<TOTAL-COSTS> 274
<OTHER-EXPENSES> 96
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 45
<INCOME-PRETAX> 21
<INCOME-TAX> 2
<INCOME-CONTINUING> 19
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 19
<EPS-PRIMARY> .18<F1>
<EPS-DILUTED> .18
<FN>
<F1>(EPS-PRIMARY) DENOTES BASIC EPS.
</FN>
</TABLE>
Page 17
<TABLE>
EXHIBIT 12
ORYX ENERGY COMPANY
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS
TO FIXED CHARGES AND EARNINGS TO FIXED CHARGES AND PREFERRED
STOCK DIVIDEND REQUIREMENTS - UNAUDITED (a)
(Millions of Dollars)
<CAPTION>
Three Months Six Months
Ended June 30 Ended June 30
1998 1998
<S> <C> <C>
RATIO OF EARNINGS TO FIXED CHARGES:
Fixed Charges:
Consolidated interest cost and debt expense $ 29 $ 56
Interest allocable to rental expense (b) 2 3
----- -----
Total $ 31 $ 59
===== =====
Earnings:
Consolidated income before provision for income
taxes $ 19 $ 21
Fixed charges 31 59
Interest capitalized (6) (11)
Amortization of previously capitalized interest 2 3
----- -----
Total $ 46 $ 72
===== =====
Ratio of Earnings to Fixed Charges 1.48 1.22
===== =====
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK
DIVIDEND REQUIREMENTS:
Fixed Charges:
Consolidated interest cost and debt expense $ 29 $ 56
Preferred stock dividend requirements - -
Interest allocable to rental expense (b) 2 3
----- -----
Total $ 31 $ 59
===== =====
Earnings:
Consolidated income before provision for income
taxes $ 19 $ 21
Fixed charges 31 59
Interest capitalized (6) (11)
Amortization of previously capitalized interest 2 3
----- -----
Total $ 46 $ 72
===== =====
Ratio of Earnings to Fixed Charges
And Preferred Stock Dividends 1.48 1.22
===== =====
<FN>
(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.
</TABLE>
<PAGE>
Page 18
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 10, 1998 on our review
of the interim condensed consolidated balance sheet of Oryx
Energy Company and its Subsidiaries as of June 30, 1998, and the
related condensed consolidated statements of income for the three
and six months ended June 30, 1998 and 1997, and the related
condensed consolidated statements of cash flows for the six
months ended June 30, 1998 and 1997, included in this Form 10-Q,
is incorporated by reference in the following registration
statements:
Registration No.
On Form S-3 for:
<TABLE>
<S> <C>
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
Oryx Energy Company $500,000,000 Debt Securities;
Preferred Stock; and Common Stock 333-33373
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
Oryx Energy Company 1997 Long-Term Incentive Plan 333-26563
</TABLE>
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/ PricewaterhouseCoopers LLP
Dallas, Texas
August 10, 1998
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<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>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 6
<SECURITIES> 0
<RECEIVABLES> 175
<ALLOWANCES> 0
<INVENTORY> 3
<CURRENT-ASSETS> 216
<PP&E> 5456
<DEPRECIATION> (3751)
<TOTAL-ASSETS> 1978
<CURRENT-LIABILITIES> 368
<BONDS> 1166
0
0
<COMMON> 1945
<OTHER-SE> (1884)
<TOTAL-LIABILITY-AND-EQUITY> 1978
<SALES> 618
<TOTAL-REVENUES> 609
<CGS> 369
<TOTAL-COSTS> 369
<OTHER-EXPENSES> 61
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 47
<INCOME-PRETAX> 132
<INCOME-TAX> 43
<INCOME-CONTINUING> 89
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 89
<EPS-PRIMARY> .85<F1>
<EPS-DILUTED> .84
<FN>
<F1>(EPS-PRIMARY) DENOTES BASIC EPS.
</FN>
</TABLE>
