Burlington Resources
NYSE : BR

Burlington Resources

October 10, 2005 07:59 ET

Burlington Resources Announces Third-Quarter Operations Update

HOUSTON--(CCNMatthews - Oct 10, 2005) -

Burlington Resources Inc. (NYSE:BR) today announced updated guidance on expected third-quarter production volumes, commodity price realizations and costs. The company's third-quarter earnings announcement on October 27 will report the final results and provide updated guidance for the fourth quarter and full year of 2005.

Burlington currently expects third-quarter 2005 daily production to fall within the lower portion of its previously announced guidance range of 2,800 to 3,000 million cubic feet of natural gas equivalent per day (MMcfed). The quarterly volumes will reflect the impact of production curtailments primarily resulting from storms in the Gulf of Mexico. Burlington has restored the majority of the 180 MMcfed of production that was curtailed immediately following Hurricane Rita, and is working aggressively to restore approximately 60 MMcfed, or 2 percent of the company's total production volume, that remains shut in at this time.

Also on a preliminary basis, average realized commodity prices for the third quarter, including results of hedging and wider-than-normal basis differentials for natural gas, are expected to range between $7 to $7.30 per thousand cubic feet for natural gas, $34 to $35 per barrel for natural gas liquids and $56 to $57 per barrel for crude oil.

The company expects its unit costs, when adjusted for expected production volumes, to remain within previously disclosed guidance ranges, with the exception of general and administrative expenses. These expenses, when compared to previous guidance, will include approximately $30 million in additional pretax costs related to the mark-to-market on a stock-based compensation program reflecting Burlington's share price at the end of the quarter.

Burlington has also made considerable humanitarian and operational contributions to relief efforts for hurricanes Katrina and Rita, including assisting affected employees and making donations through the Burlington Resources Foundation to key relief agencies involved in recovery work.

Bobby Shackouls, Burlington's chairman, president and chief executive officer, said, "We are working to ensure the safety and well being of our employees and neighbors in the areas impacted by these two tragic storms. Secondly, we remain committed with the rest of our industry to working with federal, state and local officials to restore lost production and bring new sources to market in order to moderate the extremely high energy prices being experienced by our fellow Americans. And finally, we continue to seek long-term solutions to our nation's growing energy requirements in a manner that is acceptable to the majority of our citizens."

Burlington Resources ranks among the world's largest independent oil and gas companies, and holds one of the industry's leading positions in North American natural gas reserves and production. Headquartered in Houston, Texas, the company conducts exploration, production and development operations in the U.S., Canada, the United Kingdom, Africa, China and South America. For additional information see the Burlington Resources Web site at www.br-inc.com.

FORWARD-LOOKING STATEMENTS

This press release may contain projections and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Any such projections or statements reflect the company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such projections will be achieved, and actual results could differ materially from those projected. A discussion of important factors that could cause actual results to differ materially from those projected is included in the company's periodic reports filed with the Securities and Exchange Commission.

Contact Information

  • Burlington Resources Inc.
    Lee Ahlstrom, 713-624-9548 (Financial)
    James Bartlett, 713-624-9354 (Media)