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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
JANUARY 28, 1999
ORYX ENERGY COMPANY
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(Exact name of registrant as specified in its charter)
DELAWARE
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(State or other jurisdiction of incorporation or organization)
1-10053
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(Commission File Number)
23-1743284
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(IRS Employer Identification Number)
13155 NOEL ROAD, DALLAS, TEXAS 75240-5067
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(Address of principal executive offices, including zip code)
(972) 715-4000
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(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
On January 28, 1999, Oryx Energy Company issued a press release announcing
its earnings and results of operations for the fourth quarter and twelve months
ended December 31, 1998. A copy of such press release is attached as an exhibit
hereto and is incorporated by reference herein.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
Ex. 99 Press Release dated January 28, 1999 of Oryx Energy Company.
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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/ EDWARD W. MONEYPENNY
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Edward W. Moneypenny
Executive Vice President, Finance,
Chief Financial Officer and Director
Date: January 28, 1999
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EXHIBIT INDEX
Ex. 99 Press Release, dated January 28, 1999 of Oryx Energy Company.
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EXHIBIT 99
NYSE:ORX FOR IMMEDIATE RELEASE
JANUARY 28, 1999
ORYX ENERGY REPORTS RESULTS FOR
FOURTH QUARTER AND YEAR 1998
Oryx Energy reported a net loss of $71 million, or $.67 per share, for the
quarter ended December 31, 1998, compared to net income of $39 million, or $.37
per share, for the same quarter last year. Revenues for the 1998 fourth quarter
were $190 million versus $301 million for 1997.
Net loss for 1998 was $95 million, or $.90 per share compared to net income
of $170 million, or $1.61 per share for 1997. Revenues generated in 1998 were
$820 million compared to $1,197 million in 1997.
"Our fourth quarter revenues were significantly lower, particularly hard
hit by oil prices that averaged 34 percent below the prior year," said Robert L.
Keiser, chairman and CEO.
The 1998 fourth quarter net loss of $71 million includes a $49 million
after-tax non-cash asset write-down in accordance with FAS 121 primarily due to
low oil and gas prices, a $5 million net charge for employee terminations, a $1
million gain on sale of assets and a $2 million benefit from the remeasurement
of foreign deferred taxes. By comparison, the 1997 fourth quarter net income of
$39 million includes a $1 million charge from remeasurement of foreign deferred
taxes and a $2 million extraordinary loss from the early renewal of a revolving
credit agreement.
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Compared to the same quarter last year, worldwide oil prices decreased by
$6.08 per barrel, or 34 percent, and U.S. natural gas prices decreased by $.44
per mcf, or 17 percent. Crude oil volumes decreased by 13 mb/d and natural gas
volumes decreased by 107 mmcf/d.
Comparing 1998 to 1997, worldwide oil prices decreased by $5.36 per barrel,
or 29 percent and U.S. gas prices decreased $.30 per mcf, or 13 percent. Crude
oil volumes decreased 9 mb/d and natural gas volumes decreased by 117 mmcf/d.
Discretionary cash flow for the fourth quarter was $118 million, or $1.11
per share, compared to $169 million, or $1.60 per share, in the 1997 fourth
quarter. For the full year, discretionary cash flow was $416 million, or $3.92
per share versus $606 million, or $5.74 per share in 1997.
For the year, the company reported replacing 100 percent of its 1998
production at a cost of $8.23 per equivalent barrel. 1998 reserve additions
resulted primarily from the Yuralpa discovery at Block 21 in Ecuador and the
extension of the Conger field at Garden Banks 215 in the Gulf of Mexico.
Year-end reserves were reported at 614 million equivalent barrels. Year-end debt
was reported at $1,306 million.
Kerr-McGee Corporation and Oryx Energy Company recently announced a
strategic merger that will create the fourth largest proven reserve base among
independent, non-integrated oil and gas exploration and production companies
based in the U.S. Cost savings and synergies are estimated to be in excess of
$100 million per year. The transaction is subject to the approval by the
shareholders of both companies, along with other customary closing conditions
and is anticipated to close in the first quarter. The issuance of Kerr-McGee
stock in the merger will be made only by means of a prospectus.
Dallas-headquartered Oryx Energy Company is one of the largest independent
oil and gas companies and trades on the New York Stock Exchange with the symbol
"ORX". Oryx Energy conducts its domestic business through Sun Energy Partners,
L.P., which trades with the symbol "SLP". Copies of this release may be obtained
on the Oryx home page at www.oryx.com.
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<TABLE>
<CAPTION>
Quarter Ended Twelve Months Ended
December 31 December 31
-------------------- --------------------
1998 1997 1998 1997
------- ------- ------- -------
(Millions of Dollars)
<S> <C> <C> <C> <C>
Revenues
Oil and gas $ 184 $ 301 $ 798 $ 1,213
Other 6 -- 22 (16)
------- ------- ------- -------
190 301 820 1,197
------- ------- ------- -------
Costs and Expenses
Operating costs 59 59 226 255
Production taxes 8 40 50 161
Exploration costs 38 31 133 80
DD&A 149 80 374 311
G&A 12 14 52 58
Interest and debt expense 29 28 115 111
Interest capitalized (1) (4) (16) (16)
Provision for restructuring 8 -- 33 --
------- ------- ------- -------
302 248 967 960
------- ------- ------- -------
(112) 53 (147) 237
Provision (Benefit) for Income Tax (39) 11 (52) 68
Remeasurement of Foreign Deferred Tax (2) 1 -- (3)
------- ------- ------- -------
Income (Loss) Before Extraordinary Item (71) 41 (95) 172
Extraordinary Item -- (2) -- (2)
------- ------- ------- -------
Net Income (Loss) $ (71) $ 39 $ (95) $ 170
======= ======= ======= =======
Basic Net Income (Loss) Per Share*
Before extraordinary item $ (.67) $ .39 $ (.90) $ 1.63
Extraordinary item -- (.02) -- (.02)
------- ------- ------- -------
Net income (loss) $ (.67) $ .37 $ (.90) $ 1.61
======= ======= ======= =======
Basic Common Shares (in millions) 106.2 105.8 106.1 105.6
Discretionary Cash Flow $ 118 $ 169 $ 416 $ 606
DCF Per Share $ 1.11 $ 1.60 $ 3.92 $ 5.74
ED&A Outlays $ 67 $ 121 $ 530 $ 547
Average Daily Net Production
Crude and Condensate (MBbl)
United States 43 50 44 46
United Kingdom 50 56 53 60
Other Foreign 8 8 9 9
------- ------- ------- -------
Worldwide 101 114 106 115
Natural Gas (MMcf)
United States 365 467 375 490
United Kingdom 8 13 10 12
------- ------- ------- -------
Worldwide 373 480 385 502
Average Price
Crude and Condensate ($ per Bbl)
United States 12.51 18.21 13.58 18.75
United Kingdom 12.36 18.57 13.55 19.00
Other Foreign 6.11 12.54 7.24 12.88
Worldwide 11.91 17.99 13.07 18.43
Natural Gas ($ per Mcf)
United States 2.11 2.55 2.10 2.40
United Kingdom 2.70 2.09 2.34 2.26
Worldwide 2.13 2.53 2.10 2.39
</TABLE>
* Diluted earnings per share were the same as basic earnings per share for each
quarter and for the 1998 twelve months and one cent less than basic for the
1997 twelve months.
