þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, | ||
or | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Delaware | 72-1133047 | |
(State of incorporation) | (I.R.S. Employer Identification No.) | |
363 North Sam Houston Parkway East, Suite 2020, Houston, Texas | ||
(Address of principal executive offices) | 77060 (Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock, par value $0.01 per share | New York Stock Exchange | |
Rights to Purchase Series A Junior Participating Preferred Stock, par value | New York Stock Exchange |
i
i
ii
ii
Item 1. | Business |
• | 70% were natural gas; | |
• | ||
• | ||
• | ||
• |
• | growing reserves through the drilling of a balanced risk/reward | |
• | focusing on select geographic areas; | |
• | controlling operations and costs; | |
• | using | |
• | attracting and retaining a quality workforce through equity ownership and other performance-based incentives. |
1
2
2
3
3
4
Item |
• | the domestic and foreign supply of oil and natural gas; | |
• | the price and availability of alternative fuels; | |
• | weather conditions; | |
• | the level of consumer demand; | |
• | the price of foreign imports; | |
• | world-wide economic conditions; | |
• | political conditions in oil and gas producing regions; and | |
• | domestic and foreign governmental regulations. |
4
• | the quality and quantity of available data; | |
• | the interpretation of that data; | |
• | the accuracy of various mandated economic assumptions; and | |
• | the judgment of the persons preparing the estimate. |
5
• | recoverable reserves; | |
• | future oil and gas prices; | |
• | operating costs; and | |
• | potential environmental and other liabilities. |
• | adverse weather conditions; | |
• | unexpected drilling conditions; |
6
• | pressure or irregularities in formations; | |
• | equipment failures or accidents; | |
• | compliance with governmental requirements; and | |
• | shortages or delays in the availability of drilling rigs and the delivery of equipment. |
• | fires; | |
• | explosions; | |
• | blow-outs; | |
• | uncontrollable flows of oil, gas, formation water or drilling fluids; | |
• | natural disasters; | |
• | pipe or cement failures; | |
• | casing collapses; | |
• | embedded oilfield drilling and service tools; | |
• | abnormally pressured formations; and | |
• | environmental hazards such as oil spills, natural gas leaks, pipeline ruptures and discharges of toxic gases. |
• | injury or loss of life; | |
• | severe damage or destruction of property, natural resources and equipment; | |
• | pollution and other environmental damage; | |
• | investigatory andclean-up responsibilities; | |
• | regulatory investigation and penalties; | |
• | suspension of our operations; and | |
• | repairs to resume operations. |
7
• | the timing and amount of capital expenditures; | |
• | the availability of suitable offshore drilling rigs, drilling equipment, support vessels, production and transportation infrastructure and qualified operating personnel; | |
• | the operator’s expertise and financial resources; | |
• | approval of other participants in drilling wells; and | |
• | selection of technology. |
• | the amounts and type of substances and materials that may be released into the environment; | |
• | reports and permits concerning exploration, drilling, production and other operations; | |
• | the spacing of wells; | |
• | unitization and pooling of properties; | |
• | calculating royalties on oil and gas produced under federal and state leases; and | |
• | taxation. |
• | currency restrictions and exchange rate fluctuations; |
8
• | loss of revenue, property and equipment as a result of expropriation, nationalization, war or insurrection; | |
• | increases in taxes and governmental royalties; | |
• | renegotiation of contracts with governmental entities and quasi-governmental agencies; | |
• | changes in laws and policies governing operations of foreign-based companies; | |
• | labor problems; and | |
• | other uncertainties arising out of foreign government sovereignty over our international operations. |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
9
10
5
Proved Reserves | |||||||||||||
Developed | Undeveloped | Total | |||||||||||
United States: | |||||||||||||
Oil and condensate (MMBbls) | 49.7 | 35.1 | 84.8 | ||||||||||
Gas (Bcf) | 1,003.9 | 235.7 | 1,239.6 | ||||||||||
Total proved reserves (Bcfe) | 1,302.2 | 446.0 | 1,748.2 | ||||||||||
Present value of estimated future after-tax net cash flows (in millions)(1) | $ | 3,556.8 | |||||||||||
International: | |||||||||||||
Oil and condensate (MMBbls) | 5.7 | — | 5.7 | ||||||||||
Gas (Bcf) | 1.4 | — | 1.4 | ||||||||||
Total proved reserves (Bcfe) | 35.7 | — | 35.7 | ||||||||||
Present value of estimated future after-tax net cash flows (in millions)(1) | $ | 45.2 | |||||||||||
Total: | |||||||||||||
Oil and condensate (MMBbls) | 55.4 | 35.1 | 90.5 | ||||||||||
Gas (Bcf) | 1,005.3 | 235.7 | 1,241.0 | ||||||||||
Total proved reserves (Bcfe) | 1,337.9 | 446.0 | 1,783.9 | ||||||||||
Present value of estimated future after-tax net cash flows (in millions)(1) | $ | 3,602.0 |
Proved Reserves | ||||||||||||
Developed | Undeveloped | Total | ||||||||||
United States: | ||||||||||||
Oil and condensate (MMBbls) | 54.6 | 31.9 | 86.5 | |||||||||
Gas (Bcf) | 1,010.2 | 317.0 | 1,327.2 | |||||||||
Total proved reserves (Bcfe) | 1,338.0 | 508.2 | 1,846.2 | |||||||||
Present value of estimated future after-tax net cash flows (in millions)(1) | $ | 4,734 | ||||||||||
International: | ||||||||||||
Oil and condensate (MMBbls) | 4.3 | 10.8 | 15.1 | |||||||||
Gas (Bcf) | — | 64.1 | 64.1 | |||||||||
Total proved reserves (Bcfe) | 25.8 | 128.9 | 154.7 | |||||||||
Present value of estimated future after-tax net cash flows (in millions)(1) | $ | 319 | ||||||||||
Total: | ||||||||||||
Oil and condensate (MMBbls) | 58.9 | 42.7 | 101.6 | |||||||||
Gas (Bcf) | 1,010.2 | 381.1 | 1,391.3 | |||||||||
Total proved reserves (Bcfe) | 1,363.8 | 637.1 | 2,000.9 | |||||||||
Present value of estimated future after-tax net cash flows (in millions)(1) | $ | 5,053 |
(1) | This measure was prepared using year-end oil and gas prices adjusted for the location and quality of the reserves, discounted at 10% per year. Weighted average year-end prices, as so adjusted, were |
11
2004 | 2003 | 2002 | ||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||||
Exploratory wells: | ||||||||||||||||||||||||||
Productive — U.S. | 23 | 14.1 | 27 | 16.1 | 23 | 14.3 | ||||||||||||||||||||
Nonproductive — U.S. | 17 | 11.0 | 24 | 14.4 | 13 | 7.8 | ||||||||||||||||||||
Productive — China(1) | — | — | — | — | — | — | ||||||||||||||||||||
Nonproductive — China | — | — | 1 | 0.4 | 1 | 0.4 | ||||||||||||||||||||
Nonproductive — United Kingdom | 1 | 1.0 | — | — | — | — | ||||||||||||||||||||
Total | 41 | 26.1 | 52 | 30.9 | 37 | 22.5 | ||||||||||||||||||||
Development wells: | ||||||||||||||||||||||||||
Productive — U.S. | 231 | 174.8 | 139 | 92.4 | 36 | 18.0 | ||||||||||||||||||||
Nonproductive — U.S. | 6 | 3.9 | 6 | 2.8 | 7 | 4.4 | ||||||||||||||||||||
Total | 237 | 178.7 | 145 | 95.2 | 43 | 22.4 | ||||||||||||||||||||
2005 | 2004 | 2003 | ||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||
Exploratory wells: | ||||||||||||||||||||||||
United States: | ||||||||||||||||||||||||
Productive | 27 | 17.5 | 23 | 14.1 | 27 | 16.1 | ||||||||||||||||||
Nonproductive | 16 | 10.0 | 17 | 11.0 | 24 | 14.4 | ||||||||||||||||||
China: | ||||||||||||||||||||||||
Productive | — | — | — | — | 2 | 0.7 | ||||||||||||||||||
Nonproductive | — | — | — | — | 1 | 0.4 | ||||||||||||||||||
United Kingdom: | ||||||||||||||||||||||||
Productive | 1 | 1.0 | — | — | — | — | ||||||||||||||||||
Nonproductive | 1 | 0.6 | 1 | 1.0 | — | — | ||||||||||||||||||
Malaysia: | ||||||||||||||||||||||||
Productive | 1 | 0.5 | — | — | — | — | ||||||||||||||||||
Nonproductive | 2 | 1.0 | — | — | — | — | ||||||||||||||||||
Total | 48 | 30.6 | 41 | 26.1 | 54 | 31.6 | ||||||||||||||||||
Development wells: | ||||||||||||||||||||||||
United States: | ||||||||||||||||||||||||
Productive | 498 | 394.9 | 231 | 174.8 | 139 | 92.4 | ||||||||||||||||||
Nonproductive | 17 | 14.3 | 6 | 3.9 | 6 | 2.8 | ||||||||||||||||||
Malaysia: | ||||||||||||||||||||||||
Productive | 3 | 1.5 | — | — | — | — | ||||||||||||||||||
Total | 518 | 410.7 | 237 | 178.7 | 145 | 95.2 | ||||||||||||||||||
12
6
Company | Outside | Total | |||||||||||||||||||||||||
Operated Wells | Operated Wells | Productive Wells | |||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||||||
United States: | |||||||||||||||||||||||||||
Gulf of Mexico: | |||||||||||||||||||||||||||
Oil | 53 | 38.8 | 6 | 2.1 | 59 | 40.9 | |||||||||||||||||||||
Gas | 191 | 143.1 | 85 | 23.7 | 276 | 166.8 | |||||||||||||||||||||
Louisiana: | |||||||||||||||||||||||||||
Oil | 1 | 0.8 | 2 | 0.2 | 3 | 1.0 | |||||||||||||||||||||
Gas | 3 | 1.2 | 9 | 2.6 | 12 | 3.8 | |||||||||||||||||||||
Texas: | |||||||||||||||||||||||||||
Oil | 23 | 18.4 | 34 | 4.2 | 57 | 22.6 | |||||||||||||||||||||
Gas | 361 | 326.1 | 219 | 90.1 | 580 | 416.2 | |||||||||||||||||||||
Oklahoma: | |||||||||||||||||||||||||||
Oil | 246 | 184.5 | 577 | 20.4 | 823 | 204.9 | |||||||||||||||||||||
Gas | 780 | 578.0 | 625 | 105.2 | 1,405 | 683.2 | |||||||||||||||||||||
Utah: | |||||||||||||||||||||||||||
Oil | 566 | 482.1 | 2 | 0.4 | 568 | 482.5 | |||||||||||||||||||||
Gas | — | — | — | — | — | — | |||||||||||||||||||||
Other domestic: | |||||||||||||||||||||||||||
Oil | 2 | 1.0 | 1 | 0.3 | 3 | 1.3 | |||||||||||||||||||||
Gas | 9 | 6.8 | 24 | 4.0 | 33 | 10.8 | |||||||||||||||||||||
Total domestic: | |||||||||||||||||||||||||||
Oil | 891 | 725.6 | 622 | 27.6 | 1,513 | 753.2 | |||||||||||||||||||||
Gas | 1,344 | 1,055.2 | 962 | 225.6 | 2,306 | 1,280.8 | |||||||||||||||||||||
International: | |||||||||||||||||||||||||||
Offshore Malaysia: | |||||||||||||||||||||||||||
Oil | — | — | 9 | 3.9 | 9 | 3.9 | |||||||||||||||||||||
Offshore United Kingdom: | |||||||||||||||||||||||||||
Gas | — | — | 2 | 0.4 | 2 | 0.4 | |||||||||||||||||||||
Total: | |||||||||||||||||||||||||||
Oil | 891 | 725.6 | 631 | 31.5 | 1,522 | 757.1 | |||||||||||||||||||||
Gas | 1,344 | 1,055.2 | 964 | 226.0 | 2,308 | 1,281.2 | |||||||||||||||||||||
Total | 2,235 | 1,780.8 | 1,595 | 257.5 | 3,830 | 2,038.3 | |||||||||||||||||||||
Company | Outside | Total | ||||||||||||||||||||||
Operated Wells | Operated Wells | Productive Wells | ||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||
United States: | ||||||||||||||||||||||||
Gulf of Mexico: | ||||||||||||||||||||||||
Oil | 37 | 31.4 | 7 | 1.4 | 44 | 32.8 | ||||||||||||||||||
Gas | 128 | 107.1 | 50 | 14.9 | 178 | 122.0 | ||||||||||||||||||
Louisiana: | ||||||||||||||||||||||||
Oil | 2 | 1.8 | — | — | 2 | 1.8 | ||||||||||||||||||
Gas | 11 | 7.0 | 9 | 2.4 | 20 | 9.4 | ||||||||||||||||||
Texas: | ||||||||||||||||||||||||
Oil | 24 | 19.4 | 16 | 4.2 | 40 | 23.6 | ||||||||||||||||||
Gas | 430 | 386.6 | 240 | 91.5 | 670 | 478.1 | ||||||||||||||||||
Oklahoma: | ||||||||||||||||||||||||
Oil | 238 | 180.7 | 574 | 20.4 | 812 | 201.1 | ||||||||||||||||||
Gas | 1,041 | 782.7 | 530 | 96.0 | 1,571 | 878.7 | ||||||||||||||||||
Utah: | ||||||||||||||||||||||||
Oil | 735 | 617.2 | 2 | 0.4 | 737 | 617.6 | ||||||||||||||||||
Gas | — | — | — | — | — | — | ||||||||||||||||||
Other domestic: | ||||||||||||||||||||||||
Oil | 2 | 1.0 | 1 | 0.3 | 3 | 1.3 | ||||||||||||||||||
Gas | 9 | 6.8 | 23 | 3.9 | 32 | 10.7 | ||||||||||||||||||
Total domestic: | ||||||||||||||||||||||||
Oil | 1,038 | 851.5 | 600 | 26.7 | 1,638 | 878.2 | ||||||||||||||||||
Gas | 1,619 | 1,290.2 | 852 | 208.7 | 2,471 | 1,498.9 | ||||||||||||||||||
International: | ||||||||||||||||||||||||
Offshore Malaysia: | ||||||||||||||||||||||||
Oil | — | — | 10 | 5.0 | 10 | 5.0 | ||||||||||||||||||
Total: | ||||||||||||||||||||||||
Oil | 1,038 | 851.5 | 610 | 31.7 | 1,648 | 883.2 | ||||||||||||||||||
Gas | 1,619 | 1,290.2 | 852 | 208.7 | 2,471 | 1,498.9 | ||||||||||||||||||
Total | 2,657 | 2,141.7 | 1,462 | 240.4 | 4,119 | 2,382.1 | ||||||||||||||||||
13
7
Developed Acres | Undeveloped Acres | ||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||
(in thousands) | |||||||||||||||||||
United States: | |||||||||||||||||||
Gulf of Mexico: | |||||||||||||||||||
Shelf | 749.1 | 420.3 | 263.4 | 192.0 | |||||||||||||||
Treasure Project | — | — | 454.5 | 191.9 | |||||||||||||||
Deepwater | 63.4 | 14.0 | 358.6 | 138.6 | |||||||||||||||
Total Gulf of Mexico | 812.5 | 434.3 | 1,076.5 | 522.5 | |||||||||||||||
Louisiana | 13.9 | 8.4 | 6.2 | 4.1 | |||||||||||||||
Texas | 145.5 | 86.5 | 170.6 | 110.7 | |||||||||||||||
Oklahoma | 156.5 | 83.7 | 279.0 | 203.4 | |||||||||||||||
Utah | 37.5 | 31.3 | 74.3 | 55.7 | |||||||||||||||
Other domestic | 9.9 | 4.0 | 7.8 | 4.5 | |||||||||||||||
Total onshore | 363.3 | 213.9 | 537.9 | 378.4 | |||||||||||||||
Total domestic | 1,175.8 | 648.2 | 1,614.4 | 900.9 | |||||||||||||||
International: | |||||||||||||||||||
Offshore Brazil | — | — | 206.2 | 206.2 | |||||||||||||||
Offshore China | — | — | 27.1 | 9.5 | |||||||||||||||
Offshore Malaysia | 5.5 | 2.7 | 1,505.2 | 864.0 | |||||||||||||||
Offshore United Kingdom | 6.0 | 1.2 | 118.2 | 109.2 | |||||||||||||||
Total international | 11.5 | 3.9 | 1,856.7 | 1,188.9 | |||||||||||||||
Total | 1,187.3 | 652.1 | 3,471.1 | 2,089.8 | |||||||||||||||
�� |
Developed Acres | Undeveloped Acres | |||||||||||||||
Gross | Net | Gross | Net | |||||||||||||
(In thousands) | ||||||||||||||||
United States: | ||||||||||||||||
Gulf of Mexico: | ||||||||||||||||
Shelf | 750 | 416 | 322 | 194 | ||||||||||||
Treasure Project | — | — | 474 | 176 | ||||||||||||
Deepwater | 58 | 13 | 294 | 115 | ||||||||||||
Total Gulf of Mexico | 808 | 429 | 1,090 | 485 | ||||||||||||
Onshore: | ||||||||||||||||
Louisiana | 12 | 7 | 2 | 1 | ||||||||||||
Texas | 167 | 103 | 136 | 100 | ||||||||||||
Oklahoma | 517 | 318 | 200 | 136 | ||||||||||||
Utah | 43 | 36 | 107 | 83 | ||||||||||||
Other domestic | 12 | 5 | 29 | 11 | ||||||||||||
Total onshore | 751 | 469 | 474 | 331 | ||||||||||||
Total domestic | 1,559 | 898 | 1,564 | 816 | ||||||||||||
International: | ||||||||||||||||
Offshore Brazil | — | — | 206 | 206 | ||||||||||||
Offshore China | 22 | 3 | 2,266 | 2,266 | ||||||||||||
Offshore Malaysia | 6 | 3 | 1,812 | 1,046 | ||||||||||||
Offshore United Kingdom | — | — | 168 | 168 | ||||||||||||
Total international | 28 | 6 | 4,452 | 3,686 | ||||||||||||
Total | 1,587 | 904 | 6,016 | 4,502 | ||||||||||||
14
8
Undeveloped Acres Expiring | |||||||||||||||||||||||||||||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2009 | |||||||||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||
United States: | |||||||||||||||||||||||||||||||||||||||||||
Gulf of Mexico: | |||||||||||||||||||||||||||||||||||||||||||
Shelf | 9.5 | 7.1 | 66.7 | 52.3 | 60.0 | 47.1 | 65.9 | 55.1 | 22.2 | 22.2 | |||||||||||||||||||||||||||||||||
Treasure Project(1) | 68.2 | 65.5 | 30.2 | 30.2 | 30.2 | 7.5 | 252.2 | 64.8 | 35.0 | 10.2 | |||||||||||||||||||||||||||||||||
Deepwater | 93.6 | 31.1 | 69.1 | 31.7 | 51.8 | 20.6 | 11.5 | 3.0 | — | — | |||||||||||||||||||||||||||||||||
Total Gulf of Mexico | 171.3 | 103.7 | 166.0 | 114.2 | 142.0 | 75.2 | 329.6 | 122.9 | 57.2 | 32.4 | |||||||||||||||||||||||||||||||||
Onshore | 222.6 | 102.1 | 106.2 | 77.0 | 87.2 | 71.1 | 11.4 | 8.7 | 2.2 | 0.7 | |||||||||||||||||||||||||||||||||
Total domestic | 393.9 | 205.8 | 272.2 | 191.2 | 229.2 | 146.3 | 341.0 | 131.6 | 59.4 | 33.1 | |||||||||||||||||||||||||||||||||
International: | |||||||||||||||||||||||||||||||||||||||||||
Offshore Brazil | — | — | 120.5 | 120.5 | 85.7 | 85.7 | — | — | — | — | |||||||||||||||||||||||||||||||||
Offshore China | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Offshore Malaysia | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Offshore United Kingdom | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Total international | — | — | 120.5 | 120.5 | 85.7 | 85.7 | — | — | — | — | |||||||||||||||||||||||||||||||||
Total | 393.9 | 205.8 | 392.7 | 311.7 | 314.9 | 232.0 | 341.0 | 131.6 | 59.4 | 33.1 | |||||||||||||||||||||||||||||||||
Undeveloped Acres Expiring | ||||||||||||||||||||||||||||||||||||||||
2006 | 2007 | 2008 | 2009 | 2010 | ||||||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
United States: | ||||||||||||||||||||||||||||||||||||||||
Gulf of Mexico: | ||||||||||||||||||||||||||||||||||||||||
Shelf | 62 | 47 | 62 | 36 | 62 | 54 | 17 | 17 | 26 | 26 | ||||||||||||||||||||||||||||||
Treasure Project | 50 | 50 | 30 | 8 | 263 | 69 | 57 | 17 | 38 | 10 | ||||||||||||||||||||||||||||||
Deepwater | 63 | 24 | 58 | 12 | 6 | — | — | — | 35 | 16 | ||||||||||||||||||||||||||||||
Total Gulf of Mexico | 175 | 121 | 150 | 56 | 331 | 123 | 74 | 34 | 99 | 52 | ||||||||||||||||||||||||||||||
Onshore | 129 | 109 | 101 | 95 | 33 | 51 | 5 | 5 | 3 | 5 | ||||||||||||||||||||||||||||||
Total domestic | 304 | 230 | 251 | 151 | 364 | 174 | 79 | 39 | 102 | 57 | ||||||||||||||||||||||||||||||
International: | ||||||||||||||||||||||||||||||||||||||||
Offshore Brazil | — | — | 86 | 86 | — | — | 30 | 30 | — | — | ||||||||||||||||||||||||||||||
Offshore China | — | — | 510 | 510 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Offshore Malaysia | — | — | — | — | — | — | 414 | 207 | 319 | 191 | ||||||||||||||||||||||||||||||
Offshore United Kingdom | — | — | — | — | — | — | 77 | 77 | — | — | ||||||||||||||||||||||||||||||
Total international | — | — | 596 | 596 | — | — | 521 | 314 | 319 | 191 | ||||||||||||||||||||||||||||||
Total | 304 | 230 | 847 | 747 | 364 | 174 | 600 | 353 | 421 | 248 | ||||||||||||||||||||||||||||||
• | customary royalty interests; | |
• | liens incident to operating agreements and for current taxes; | |
• | obligations or duties under applicable laws; | |
• | development obligations under oil and gas leases; | |
• | burdens such as net profits interests; and | |
• | capital commitments under production sharing contracts or exploration licenses. |
9
Item 3. | Legal Proceedings |
15
Item 4. | Submission of Matters to a Vote of Security Holders |
Item 4A. | Executive Officers of the Registrant |
Total Years | ||||||||||
of Service | ||||||||||
with | ||||||||||
Name | Age | Position | Newfield | |||||||
David A. Trice | 56 | Chairman, President and Chief Executive Officer and a Director | 10 | |||||||
David F. Schaible | 44 | Executive Vice President – Operations and Acquisitions and a Director | 15 | |||||||
Elliott Pew | 50 | Executive Vice President – Exploration | 7 | |||||||
Terry W. Rathert | 52 | Senior Vice President, Chief Financial Officer and Secretary | 15 | |||||||
Lee K. Boothby | 43 | Vice President – Mid-Continent | 5 | |||||||
George T. Dunn | 47 | Vice President – Gulf Coast | 12 | |||||||
Gary D. Packer | 42 | Vice President – Rocky Mountains | 9 | |||||||
William D. Schneider | 53 | Vice President – International | 15 | |||||||
Brian L. Rickmers | 36 | Controller and Assistant Secretary | 11 | |||||||
Susan G. Riggs | 47 | Treasurer | 8 |
Total Years | ||||||||||
of Service | ||||||||||
with | ||||||||||
Name | Age | Position | Newfield | |||||||
David A. Trice | 57 | Chairman, President and Chief Executive Officer and a Director | 11 | |||||||
David F. Schaible | 45 | Executive Vice President — Operations and Acquisitions and a Director | 16 | |||||||
Elliott Pew | 51 | Executive Vice President — Exploration | 8 | |||||||
Terry W. Rathert | 53 | Senior Vice President, Chief Financial Officer and Secretary | 16 | |||||||
W. Mark Blumenshine. | 47 | Vice President — Land | 4 | |||||||
Mona Leigh Bernhardt | 39 | Vice President — Human Resources | 6 | |||||||
Lee K. Boothby | 44 | Vice President — Mid-Continent | 6 | |||||||
Stephen C. Campbell | 37 | Vice President — Investor Relations | 6 | |||||||
George T. Dunn | 48 | Vice President — Gulf Coast | 13 | |||||||
James J. Metcalf | 48 | Vice President — Drilling | 10 | |||||||
Gary D. Packer | 43 | Vice President — Rocky Mountains | 10 | |||||||
William D. Schneider | 54 | Vice President — International | 16 | |||||||
Mark J. Spicer | 46 | Vice President — Information Technology | 5 | |||||||
James T. Zernell | 48 | Vice President — Production | 9 | |||||||
Brian L. Rickmers | 37 | Controller and Assistant Secretary | 12 | |||||||
Susan G. Riggs | 48 | Treasurer | 9 |
16
17
10
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
High | Low | ||||||||
2003 | |||||||||
First Quarter | $ | 36.90 | $ | 31.35 | |||||
Second Quarter | 39.10 | 32.49 | |||||||
Third Quarter | 40.33 | 33.64 | |||||||
Fourth Quarter | 45.51 | 38.20 | |||||||
2004 | |||||||||
First Quarter | 50.20 | 44.15 | |||||||
Second Quarter | 56.72 | 46.92 | |||||||
Third Quarter | 62.82 | 52.57 | |||||||
Fourth Quarter | 65.83 | 55.75 | |||||||
2005 | |||||||||
First Quarter (Through March 7, 2005) | 76.65 | 54.87 |
High | Low | |||||||
2004 | ||||||||
First Quarter | 25.10 | 22.08 | ||||||
Second Quarter | 28.36 | 23.46 | ||||||
Third Quarter | 31.41 | 26.29 | ||||||
Fourth Quarter | 32.92 | 27.88 | ||||||
2005 | ||||||||
First Quarter | 38.43 | 27.43 | ||||||
Second Quarter | 41.28 | 32.03 | ||||||
Third Quarter | 50.90 | 39.00 | ||||||
Fourth Quarter | 53.52 | 39.98 | ||||||
2006 | ||||||||
First Quarter (Through February 28, 2006) | 54.50 | 38.18 |
Maximum Number | ||||||||||||||||
Total Number of | (or Approximate) | |||||||||||||||
Shares Purchased | Dollar Value) of | |||||||||||||||
as Part of Publicly | Shares that May Yet | |||||||||||||||
Total Number of | Average Price | Announced Plans | Be Purchased Under | |||||||||||||
Period | Shares Purchased(1) | Paid per Share | or Programs | the Plans or Programs | ||||||||||||
October 1 – October 31, 2004 | — | — | — | — | ||||||||||||
November 1 – November 30, 2004 | 397 | $ | 59.78 | — | — | |||||||||||
December 1 – December 31, 2004 | 1,696 | $ | 59.35 | — | — |
Maximum Number | ||||||||||||||||
Total Number of | (or Approximate) | |||||||||||||||
Shares Purchased | Dollar Value) of | |||||||||||||||
as Part of Publicly | Shares that May Yet | |||||||||||||||
Total Number of | Average Price | Announced Plans | Be Purchased Under | |||||||||||||
Period | Shares Purchased(1) | Paid per Share | or Programs | the Plans or Programs | ||||||||||||
October 1 – October 31, 2005 | — | — | — | — | ||||||||||||
November 1 – November 30, 2005 | — | — | — | — | ||||||||||||
December 1 – December 31, 2005 | 1,412 | $ | 49.31 | — | — |
(1) | All of the shares repurchased were surrendered by employees to pay tax withholding upon the vesting of restricted stock awards. These repurchases were not part of a publicly announced program to |
18
11
Item 6. | Selected Financial Data |
Year Ended December 31, | ||||||||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||
Income Statement Data: | ||||||||||||||||||||||
Oil and gas revenues | $ | 1,352.7 | $ | 1,017.0 | $ | 626.8 | $ | 714.1 | $ | 479.9 | ||||||||||||
Operating expenses: | ||||||||||||||||||||||
Lease operating | 145.7 | 119.3 | 90.8 | 85.7 | 51.5 | |||||||||||||||||
Production and other taxes | 42.3 | 31.7 | 13.3 | 14.4 | 5.6 | |||||||||||||||||
Transportation | 6.3 | 6.4 | 5.7 | 5.6 | 6.0 | |||||||||||||||||
Depreciation, depletion and amortization | 471.4 | 394.7 | 295.1 | 274.9 | 183.7 | |||||||||||||||||
Ceiling test writedown | 17.0 | — | — | 106.0 | 0.5 | |||||||||||||||||
General and administrative | 84.0 | 61.6 | 54.4 | 42.6 | 31.5 | |||||||||||||||||
Impairment of floating production system and pipelines | 35.0 | — | — | — | — | |||||||||||||||||
Gas sales obligation settlement and redemption of securities | — | 20.5 | — | — | — | |||||||||||||||||
Total operating expenses | 801.7 | 634.2 | 459.3 | 529.2 | 278.8 | |||||||||||||||||
Income from operations | 551.0 | 382.8 | 167.5 | 184.9 | 201.1 | |||||||||||||||||
Other income (expense), net | (28.3 | ) | (45.1 | ) | (30.5 | ) | (27.6 | ) | (17.6 | ) | ||||||||||||
Commodity derivative income (expense)(1) | (23.8 | ) | (6.1 | ) | (29.1 | ) | 24.8 | — | ||||||||||||||
Income from continuing operations before income taxes | 498.9 | 331.6 | 107.9 | 182.1 | 183.5 | |||||||||||||||||
Income tax provision | 186.8 | 120.7 | 39.2 | 64.7 | 64.6 | |||||||||||||||||
Income from continuing operations | 312.1 | 210.9 | 68.7 | 117.4 | 118.9 | |||||||||||||||||
Income (loss) from discontinued operations, net of tax(2) | — | (17.0 | ) | 5.1 | 6.4 | 15.8 | ||||||||||||||||
Income before cumulative effect of change in accounting principle | 312.1 | 193.9 | 73.8 | 123.8 | 134.7 | |||||||||||||||||
Cumulative effect of change in accounting principle, net of tax(1)(3)(4) | — | 5.6 | — | (4.8 | ) | (2.4 | ) | |||||||||||||||
Net income | $ | 312.1 | $ | 199.5 | $ | 73.8 | $ | 119.0 | $ | 132.3 | ||||||||||||
Earnings per share: | ||||||||||||||||||||||
Basic — | ||||||||||||||||||||||
Income from continuing operations | $ | 5.35 | $ | 3.88 | $ | 1.52 | $ | 2.65 | $ | 2.81 | ||||||||||||
Income (loss) from discontinued operations(2) | — | (0.31 | ) | 0.12 | 0.15 | 0.37 | ||||||||||||||||
Cumulative effect of change in accounting principle, net of tax(1)(3)(4) | — | 0.10 | — | (0.11 | ) | (0.05 | ) | |||||||||||||||
Net income | $ | 5.35 | $ | 3.67 | $ | 1.64 | $ | 2.69 | $ | 3.13 | ||||||||||||
Diluted — | ||||||||||||||||||||||
Income from continuing operations | $ | 5.26 | $ | 3.77 | $ | 1.51 | $ | 2.53 | $ | 2.65 | ||||||||||||
Income (loss) from discontinued operations(2) | — | (0.30 | ) | 0.10 | 0.13 | 0.33 | ||||||||||||||||
Cumulative effect of change in accounting principle, net of tax(1)(3)(4) | — | 0.10 | — | (0.10 | ) | (0.05 | ) | |||||||||||||||
Net income | $ | 5.26 | $ | 3.57 | $ | 1.61 | $ | 2.56 | $ | 2.93 | ||||||||||||
Weighted average number of shares outstanding for basic earnings per share | 58.3 | 54.3 | 45.1 | 44.3 | 42.3 | |||||||||||||||||
Weighted average number of shares outstanding for diluted earnings per share | 59.3 | 56.7 | 49.6 | 48.9 | 47.2 |
Year Ended December 31, | ||||||||||||||||||||
2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||
Income Statement Data: | ||||||||||||||||||||
Oil and gas revenues | $ | 1,762 | $ | 1,353 | $ | 1,017 | $ | 627 | $ | 714 | ||||||||||
Income from continuing operations | 348 | 312 | 211 | 69 | 117 | |||||||||||||||
Net income | 348 | 312 | 200 | 74 | 119 | |||||||||||||||
Earnings per share: | ||||||||||||||||||||
Basic — | ||||||||||||||||||||
Income from continuing operations | 2.78 | 2.68 | 1.94 | 0.76 | 1.33 | |||||||||||||||
Net income | 2.78 | 2.68 | 1.83 | 0.82 | 1.35 | |||||||||||||||
Diluted — | ||||||||||||||||||||
Income from continuing operations | 2.73 | 2.63 | 1.88 | 0.76 | 1.27 | |||||||||||||||
Net income | 2.73 | 2.63 | 1.78 | 0.81 | 1.28 | |||||||||||||||
Weighted average number of shares outstanding for basic earnings per share | 125 | 117 | 109 | 90 | 89 | |||||||||||||||
Weighted average number of shares outstanding for diluted earnings per share | 128 | 119 | 113 | 99 | 98 | |||||||||||||||
Cash Flow Data: | ||||||||||||||||||||
Net cash provided by continuing operating activities | $ | 1,109 | $ | 997 | $ | 659 | $ | 383 | $ | 496 | ||||||||||
Net cash used in continuing investing activities | (1,036 | ) | (1,599 | ) | (615 | ) | (502 | ) | (755 | ) | ||||||||||
Net cash provided by (used in) continuing financing activities | (88 | ) | 644 | (85 | ) | 137 | 273 | |||||||||||||
Balance Sheet Data (at end of period): | ||||||||||||||||||||
Total assets | $ | 5,081 | $ | 4,327 | $ | 2,733 | $ | 2,316 | $ | 1,663 | ||||||||||
Long-term debt | 870 | 992 | 643 | 710 | 429 | |||||||||||||||
Convertible preferred securities | — | — | — | 144 | 144 | |||||||||||||||
Reserve Data (at end of period): | ||||||||||||||||||||
Proved reserves: | ||||||||||||||||||||
Oil and condensate (MMBbls) | 101.6 | 90.5 | 37.8 | 34.0 | 31.0 | |||||||||||||||
Gas (Bcf) | 1,391 | 1,241 | 1,090 | 977 | 718 | |||||||||||||||
Total proved reserves (Bcfe) | 2,001 | 1,784 | 1,317 | 1,181 | 904 | |||||||||||||||
Present value of estimated future after-tax net cash flows | $ | 5,053 | $ | 3,602 | $ | 2,935 | $ | 2,247 | $ | 959 |
19
12
Year Ended December 31, | |||||||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||||||||
(In millions) | |||||||||||||||||||||
Cash Flow Data: | |||||||||||||||||||||
Net cash provided by continuing operating activities | $ | 997.5 | $ | 659.2 | $ | 383.3 | $ | 495.6 | $ | 289.4 | |||||||||||
Net cash used in continuing investing activities | (1,598.8 | ) | (614.7 | ) | (501.8 | ) | (754.5 | ) | (339.3 | ) | |||||||||||
Net cash provided by (used in) continuing financing activities | 643.8 | (85.4 | ) | 137.0 | 273.1 | 15.9 | |||||||||||||||
Balance Sheet Data (at end of period): | |||||||||||||||||||||
Working capital surplus (deficit) | $ | (82.4 | ) | $ | (61.3 | ) | $ | (57.0 | ) | $ | 65.6 | $ | 38.5 | ||||||||
Oil and gas properties, net | 3,775.3 | 2,418.5 | 1,986.9 | 1,395.3 | 822.3 | ||||||||||||||||
Total assets | 4,327.5 | 2,733.1 | 2,315.8 | 1,663.4 | 1,023.3 | ||||||||||||||||
Long-term debt | 992.4 | 643.5 | 709.6 | 428.6 | 133.7 | ||||||||||||||||
Convertible preferred securities | — | — | 143.8 | 143.8 | 143.8 | ||||||||||||||||
Stockholders’ equity | 2,016.9 | 1,368.6 | 1,009.3 | 710.1 | 519.5 | ||||||||||||||||
Reserve Data (at end of period): | |||||||||||||||||||||
Proved reserves: | |||||||||||||||||||||
Oil and condensate (MMBbls) | 90.5 | 37.8 | 34.0 | 31.0 | 22.6 | ||||||||||||||||
Gas (Bcf) | 1,241 | 1,090 | 977 | 718 | 520 | ||||||||||||||||
Total proved reserves (Bcfe) | 1,784 | 1,317 | 1,181 | 904 | 655 | ||||||||||||||||
Present value of estimated future after-tax net cash flows | $ | 3,602.0 | $ | 2,935.4 | $ | 2,247.0 | $ | 958.9 | $ | 2,653.4 |
13
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | the amount of cash flow available for capital expenditures; | |
• | our ability to borrow and raise additional capital; | |
• | the quantity of oil and gas that we can economically produce; and | |
• | the accounting for our oil and gas activities. |
• | the quantity of our proved oil and gas reserves; | |
• | the timing of future drilling, development and abandonment activities; | |
• | the cost of these activities in the future; | |
• | the fair value of the assets and liabilities of acquired companies; and | |
• | the value of our derivative positions. |
20
14
Year Ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
Production(1): | |||||||||||||
United States: | |||||||||||||
Natural gas (Bcf) | 197.6 | 184.2 | 144.7 | ||||||||||
Oil and condensate (MBbls) | 6,686 | 6,054 | 5,235 | ||||||||||
Total (Bcfe) | 237.7 | 220.6 | 176.1 | ||||||||||
International: | |||||||||||||
Natural gas (Bcf) | 0.6 | — | — | ||||||||||
Oil and condensate (MBbls) | 879 | — | — | ||||||||||
Total (Bcfe) | 5.9 | — | — | ||||||||||
Total: | |||||||||||||
Natural gas (Bcf) | 198.2 | 184.2 | 144.7 | ||||||||||
Oil and condensate (MBbls) | 7,565 | 6,054 | 5,235 | ||||||||||
Total (Bcfe) | 243.6 | 220.6 | 176.1 | ||||||||||
Average Realized Prices(2): | |||||||||||||
United States: | |||||||||||||
Natural gas (per Mcf) | $ | 5.40 | $ | 4.60 | $ | 3.44 | |||||||
Oil and condensate (per Bbl) | 36.61 | 27.99 | 24.54 | ||||||||||
Natural gas equivalent (per Mcfe) | 5.52 | 4.61 | 3.56 | ||||||||||
International: | |||||||||||||
Natural gas (per Mcf) | $ | 4.38 | $ | — | $ | — | |||||||
Oil and condensate (per Bbl) | 44.26 | — | — | ||||||||||
Natural gas equivalent (per Mcfe) | 7.07 | — | — | ||||||||||
Total: | |||||||||||||
Natural gas (per Mcf) | $ | 5.39 | $ | 4.60 | $ | 3.44 | |||||||
Oil and condensate (per Bbl) | 37.50 | 27.99 | 24.54 | ||||||||||
Natural gas equivalent (per Mcfe) | 5.55 | 4.61 | 3.56 |
21
Year Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Production(1): | ||||||||||||
United States: | ||||||||||||
Natural gas (Bcf) | 190.9 | 197.6 | 184.2 | |||||||||
Oil and condensate (MBbls) | 7,152 | 6,686 | 6,054 | |||||||||
Total (Bcfe) | 233.7 | 237.7 | 220.6 | |||||||||
International: | ||||||||||||
Natural gas (Bcf) | 0.1 | 0.6 | — | |||||||||
Oil and condensate (MBbls) | 1,294 | 879 | — | |||||||||
Total (Bcfe) | 7.9 | 5.9 | — | |||||||||
Total: | ||||||||||||
Natural gas (Bcf) | 191.0 | 198.2 | 184.2 | |||||||||
Oil and condensate (MBbls) | 8,446 | 7,565 | 6,054 | |||||||||
Total (Bcfe) | 241.6 | 243.6 | 220.6 | |||||||||
Average Realized Prices(2): | ||||||||||||
United States: | ||||||||||||
Natural gas (per Mcf) | $ | 7.18 | $ | 5.40 | $ | 4.60 | ||||||
Oil and condensate (per Bbl) | 44.06 | 36.61 | 27.99 | |||||||||
Natural gas equivalent (per Mcfe) | 7.21 | 5.52 | 4.61 | |||||||||
International: | ||||||||||||
Natural gas (per Mcf) | $ | 4.71 | $ | 4.38 | $ | — | ||||||
Oil and condensate (per Bbl) | 55.68 | 44.26 | — | |||||||||
Natural gas equivalent (per Mcfe) | 9.20 | 7.07 | — | |||||||||
Total: | ||||||||||||
Natural gas (per Mcf) | $ | 7.17 | $ | 5.39 | $ | 4.60 | ||||||
Oil and condensate (per Bbl) | 45.84 | 37.50 | 27.99 | |||||||||
Natural gas equivalent (per Mcfe) | 7.27 | 5.55 | 4.61 |
(1) | Represents volumes sold regardless of when produced. | |
(2) | Average realized prices include the effects of hedging other than |
15
22
Average Realized | |||||||||||||
Prices | Ratio of | ||||||||||||
Hedged to | |||||||||||||
With | Without | Non-Hedged | |||||||||||
Hedge(1) | Hedge | Price(2) | |||||||||||
Natural Gas: | |||||||||||||
Year ended December 31, 2004 | $ | 5.39 | $ | 5.75 | 94 | % | |||||||
Year ended December 31, 2003 | 4.60 | 5.15 | 89 | % | |||||||||
Year ended December 31, 2002 | 3.44 | 3.19 | 108 | % | |||||||||
Crude Oil and Condensate: | |||||||||||||
Year ended December 31, 2004 | $ | 37.50 | $ | 40.95 | 92 | % | |||||||
Year ended December 31, 2003 | 27.99 | 30.10 | 93 | % | |||||||||
Year ended December 31, 2002 | 24.54 | 24.78 | 99 | % |
Average Realized | Ratio of | |||||||||||
Prices | Hedged to | |||||||||||
With | Without | Non-Hedged | ||||||||||
Hedge(1) | Hedge | Price(2) | ||||||||||
Natural Gas: | ||||||||||||
Year ended December 31, 2005 | $ | 7.17 | $ | 7.54 | 95 | % | ||||||
Year ended December 31, 2004 | 5.39 | 5.75 | 94 | % | ||||||||
Year ended December 31, 2003 | 4.60 | 5.15 | 89 | % | ||||||||
Crude Oil and Condensate: | ||||||||||||
Year ended December 31, 2005 | $ | 45.84 | $ | 53.36 | 86 | % | ||||||
Year ended December 31, 2004 | 37.50 | 40.95 | 92 | % | ||||||||
Year ended December 31, 2003 | 27.99 | 30.10 | 93 | % |
(1) | Average realized prices | |
(2) | The ratio is determined by dividing the realized price (which includes the effects of hedging other than |
23
16
Unit-of-Production | Amount | |||||||||||||||||||||||
(Per Mcfe) | (In millions) | |||||||||||||||||||||||
Year Ended | Percentage | Year Ended | Percentage | |||||||||||||||||||||
December 31, | Increase | December 31, | Increase | |||||||||||||||||||||
2005 | 2004 | (Decrease) | 2005 | 2004 | (Decrease) | |||||||||||||||||||
United States: | ||||||||||||||||||||||||
Lease operating | $ | 0.81 | $ | 0.60 | 35 | % | $ | 190 | $ | 143 | 33 | % | ||||||||||||
Production and other taxes | 0.25 | 0.17 | 47 | % | 58 | 40 | 44 | % | ||||||||||||||||
Depreciation, depletion and amortization | 2.18 | 1.95 | 12 | % | 510 | 463 | 10 | % | ||||||||||||||||
General and administrative | 0.43 | 0.34 | 26 | % | 101 | 82 | 24 | % | ||||||||||||||||
Other | (0.12 | ) | 0.15 | (180 | %) | (29 | ) | 35 | (181 | %) | ||||||||||||||
Total operating expenses | 3.55 | 3.21 | 11 | % | 830 | 763 | 9 | % | ||||||||||||||||
International: | ||||||||||||||||||||||||
Lease operating | $ | 1.90 | $ | 1.59 | 19 | % | $ | 15 | $ | 9 | 61 | % | ||||||||||||
Production and other taxes | 0.82 | 0.38 | 116 | % | 6 | 2 | 183 | % | ||||||||||||||||
Depreciation, depletion and amortization | 1.36 | 1.37 | (1 | %) | 11 | 9 | 35 | % | ||||||||||||||||
General and administrative | 0.44 | 0.43 | 2 | % | 3 | 2 | 36 | % | ||||||||||||||||
Ceiling test writedown | 1.22 | 2.90 | (58 | %) | 10 | 17 | (44 | %) | ||||||||||||||||
Total operating expenses | 5.74 | 6.67 | (14 | %) | 45 | 39 | 15 | % | ||||||||||||||||
Total: | ||||||||||||||||||||||||
Lease operating | $ | 0.85 | $ | 0.63 | 35 | % | $ | 205 | $ | 152 | 35 | % | ||||||||||||
Production and other taxes | 0.26 | 0.17 | 53 | % | 64 | 42 | 51 | % | ||||||||||||||||
Depreciation, depletion and amortization | 2.15 | 1.94 | 11 | % | 521 | 472 | 10 | % | ||||||||||||||||
General and administrative | 0.43 | 0.34 | 26 | % | 104 | 84 | 24 | % | ||||||||||||||||
Ceiling test writedown | 0.04 | 0.07 | (43 | %) | 10 | 17 | (44 | %) | ||||||||||||||||
Other | (0.12 | ) | 0.14 | (186 | %) | (29 | ) | 35 | (181 | %) | ||||||||||||||
Total operating expenses | 3.61 | 3.29 | 10 | % | 875 | 802 | 9 | % |
• | Lease operating expense (LOE), on an Mcfe basis, was adversely impacted by deferred production of approximately 22 Bcfe related to the 2005 storms, higher operating costs, increased well workover activity and natural field declines in our Gulf of Mexico properties. | |
• | Production and other taxes, on an Mcfe basis, increased due to higher commodity prices and an increase in the proportion of our production volumes subject to production taxes as a result of our acquisition of Inland Resources, increased production from our Mid-Continent and onshore Gulf Coast operations and storm related deferrals in the Gulf of Mexico. |
24
• | The increase in our depreciation, depletion and amortization (DD&A) resulted from higher cost reserve additions. The component of DD&A associated with accretion expense related to SFAS No. 143 was $0.06 per Mcfe and $0.05 per Mcfe for 2005 and 2004, respectively. The component of DD&A associated with furniture, fixtures and equipment was $0.01 per Mcfe for 2005 and 2004. | |
• | The increase in general and administrative expense (G&A) for 2005 of $0.09 per Mcfe, or 26%, was primarily due to growth in our workforce as a result of acquisitions and an increase in incentive compensation as a result of higher adjusted net income (as defined in our incentive compensation plan) in 2005 as compared to the prior year. Adjusted net income for purposes of our incentive compensation plan excludes unrealized gains and losses on commodity derivatives. During 2005, we capitalized $38 million of direct internal costs as compared to $30 million in 2004. | |
• | Other expenses for 2005 and 2004 include the following items: |
— | In December 2005, we recorded a $22 million benefit related to our business interruption insurance coverage as a result of the operations disruptions caused by Hurricanes Katrina and Rita. | |
— | As a result of our acquisition of EEX Corporation in November 2002, we owned a 60% interest in a floating production system, some offshore pipelines and a processing facility located at the end of the pipelines in shallow water. At the time of acquisition, we estimated the fair value of these assets to be $35 million. Since their acquisition, we had undertaken to sell these assets. In December 2004, when what we believed was the last commercial opportunity for sale was not realized, we determined that there was no active market for these assets. As a result, in connection with the preparation of our financial statements for the year ended December 31, 2004, we recorded an impairment charge of $35 million. In early April 2005, we entered into an agreement with Diamond Offshore Services Company to sell our interest in the floating production facility and related equipment. In August 2005, we closed the sale and received net proceeds of $7 million, which were recorded as a gain on our consolidated statement of income. |
• | The increase in LOE primarily resulted from a full year of operations in Malaysia in 2005. | |
• | Production and other taxes increased due to the significant increase in oil prices during 2005. | |
• | A ceiling test writedown of $10 million associated with our decreased emphasis on exploration efforts in Brazil and in other non-core international regions was recorded in December 2005. In 2004, we recorded a ceiling test writedown of $17 million associated with a dry hole in the U.K. North Sea. |
25
Unit-of-Production | Amount | |||||||||||||||||||||||||
(Per Mcfe) | (In millions) | |||||||||||||||||||||||||
Year Ended | Year Ended | |||||||||||||||||||||||||
December 31, | Percentage | December 31, | Percentage | |||||||||||||||||||||||
Increase | Increase | |||||||||||||||||||||||||
2004 | 2003 | (Decrease) | 2004 | 2003 | (Decrease) | |||||||||||||||||||||
United States: | ||||||||||||||||||||||||||
Lease operating | $ | 0.57 | $ | 0.54 | 6 | % | $ | 136.4 | $ | 119.3 | 14 | % | ||||||||||||||
Production and other taxes | 0.17 | 0.14 | 21 | % | 40.0 | 31.7 | 26 | % | ||||||||||||||||||
Transportation | 0.03 | 0.03 | — | 6.3 | 6.4 | (2 | %) | |||||||||||||||||||
Depreciation, depletion and amortization | 1.95 | 1.79 | 9 | % | 463.4 | 394.7 | 17 | % | ||||||||||||||||||
General and administrative | 0.34 | 0.28 | 21 | % | 81.8 | 61.6 | 33 | % | ||||||||||||||||||
Impairment of floating production system and pipelines | 0.15 | — | N/M | (2) | 35.0 | — | N/M | (2) | ||||||||||||||||||
Gas sales obligation settlement and redemption of securities | — | 0.09 | N/M | (2) | — | 20.5 | N/M | (2) | ||||||||||||||||||
Total operating expenses | 3.21 | 2.87 | 12 | % | 762.9 | 634.2 | 20 | % | ||||||||||||||||||
Total regularly recurring operating expenses(1) | 3.06 | 2.78 | 10 | % | 727.9 | 613.7 | 19 | % | ||||||||||||||||||
International: | ||||||||||||||||||||||||||
Lease operating | $ | 1.59 | $ | 9.3 | ||||||||||||||||||||||
Production and other taxes | 0.38 | 2.3 | ||||||||||||||||||||||||
Transportation | — | — | ||||||||||||||||||||||||
Depreciation, depletion and amortization | 1.37 | 8.0 | ||||||||||||||||||||||||
General and administrative | 0.37 | 2.2 | ||||||||||||||||||||||||
Ceiling test writedown | 2.90 | 17.0 | ||||||||||||||||||||||||
Total operating expenses | 6.61 | 38.8 | ||||||||||||||||||||||||
Total regularly recurring operating expenses(1) | 3.71 | 21.8 | ||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||
Lease operating | $ | 0.60 | $ | 0.54 | 11 | % | $ | 145.7 | $ | 119.3 | 22 | % | ||||||||||||||
Production and other taxes | 0.17 | 0.14 | 21 | % | 42.3 | 31.7 | 33 | % | ||||||||||||||||||
Transportation | 0.03 | 0.03 | — | 6.3 | 6.4 | (2 | %) | |||||||||||||||||||
Depreciation, depletion and amortization | 1.94 | 1.79 | 8 | % | 471.4 | 394.7 | 19 | % | ||||||||||||||||||
General and administrative | 0.34 | 0.28 | 21 | % | 84.0 | 61.6 | 36 | % | ||||||||||||||||||
Ceiling test writedown | 0.07 | — | N/M | (2) | 17.0 | — | N/M | (2) | ||||||||||||||||||
Impairment of floating production system and pipelines | 0.14 | — | N/M | (2) | 35.0 | — | N/M | (2) | ||||||||||||||||||
Gas sales obligation settlement and redemption of securities | — | 0.09 | N/M | (2) | — | 20.5 | N/M | (2) | ||||||||||||||||||
Total operating expenses | 3.29 | 2.87 | 15 | % | 801.7 | 634.2 | 26 | % | ||||||||||||||||||
Total regularly recurring operating expenses(1) | 3.08 | 2.78 | 11 | % | 749.7 | 613.7 | 22 | % |
Unit-of-Production | Amount | |||||||||||||||||||||||
(Per Mcfe) | (In millions) | |||||||||||||||||||||||
Year Ended | Percentage | Year Ended | Percentage | |||||||||||||||||||||
December 31, | Increase | December 31, | Increase | |||||||||||||||||||||
2004 | 2003 | (Decrease) | 2004 | 2003 | (Decrease) | |||||||||||||||||||
United States: | ||||||||||||||||||||||||
Lease operating | $ | 0.60 | $ | 0.57 | 5 | % | $ | 143 | $ | 125 | 14 | % | ||||||||||||
Production and other taxes | 0.17 | 0.14 | 21 | % | 40 | 32 | 26 | % | ||||||||||||||||
Depreciation, depletion and amortization | 1.95 | 1.79 | 9 | % | 463 | 395 | 17 | % | ||||||||||||||||
General and administrative | 0.34 | 0.28 | 21 | % | 82 | 62 | 33 | % | ||||||||||||||||
Other | 0.15 | 0.09 | 67 | % | 35 | 20 | 71 | % | ||||||||||||||||
Total operating expenses | 3.21 | 2.87 | 12 | % | 763 | 634 | 20 | % | ||||||||||||||||
International: | ||||||||||||||||||||||||
Lease operating | $ | 1.59 | $ | 9 | ||||||||||||||||||||
Production and other taxes | 0.38 | 2 | ||||||||||||||||||||||
Depreciation, depletion and amortization | 1.37 | 9 | ||||||||||||||||||||||
General and administrative | 0.43 | 2 | ||||||||||||||||||||||
Ceiling test writedown | 2.90 | 17 | ||||||||||||||||||||||
Total operating expenses | 6.67 | 39 | ||||||||||||||||||||||
Total: | ||||||||||||||||||||||||
Lease operating | $ | 0.63 | $ | 0.57 | 11 | % | $ | 152 | $ | 125 | 21 | % | ||||||||||||
Production and other taxes | 0.17 | 0.14 | 21 | % | 42 | 32 | 33 | % | ||||||||||||||||
Depreciation, depletion and amortization | 1.94 | 1.79 | 8 | % | 472 | 395 | 19 | % | ||||||||||||||||
General and administrative | 0.34 | 0.28 | 21 | % | 84 | 62 | 36 | % | ||||||||||||||||
Ceiling test writedown | 0.07 | — | N/M(1 | ) | 17 | — | N/M | (1) | ||||||||||||||||
Other | 0.14 | 0.09 | 56 | % | 35 | 20 | 71 | % | ||||||||||||||||
Total operating expenses | 3.29 | 2.87 | 15 | % | 802 | 634 | 26 | % |
(1) | |
Not meaningful. |
• | ||
• | Production and other taxes, on an Mcfe basis, increased in 2004 due to higher commodity prices and an increase in our production volumes subject to production taxes. |
17
26
• | ||
• | ||
• | Other expenses for 2004 and 2003 include the following items: |
— | As a result of our acquisition of EEX Corporation in November 2002, we owned a 60% interest in a floating production system, some offshore pipelines and a processing facility located at the end of the pipelines in shallow water. At the time of acquisition, we estimated the fair value of these assets to be $35 million. Since their acquisition, we had undertaken to sell these assets. In December 2004, when what we believed was the last commercial opportunity for sale was not realized, we determined that there was no active market for these assets. As a result, in connection with the preparation of our financial statements for the year ended December 31, 2004, we recorded an impairment charge of $35 million. | |
— | Pursuant to a gas forward sales contract entered into in 1999, EEX committed to deliver approximately 50 Bcf of production to a third party in exchange for proceeds of $105 million. When we acquired EEX, we recorded a liability of $62 million, which represented the then current market value of approximately 16 Bcf of remaining reserves subject to the contract. We accounted for the obligation under the gas sales contract as debt on our consolidated balance sheet. In March 2003, pursuant to a settlement agreement, the gas sales contract and all related agreements were terminated in exchange for a payment by us of approximately $73 million. We recognized a loss of $10 million under the caption “Other” on our consolidated statement of income as a result of the settlement. | |
— | In June 2003, we redeemed all of our outstanding convertible trust preferred securities for an aggregate redemption price of approximately $149 million, including $6 million of optional redemption premium. This premium and $4 million of unamortized offering costs (which were being amortized over the30-year life of the securities) were expensed under the caption “Other” on our consolidated statement of income. We financed the redemption with the net proceeds (approximately $131 million) from the issuance and sale of 3.5 million shares of our common stock in May 2003 and borrowings under our credit arrangements. |
Unit-of-Production | Amount | ||||||||||||||||||||||||
(Per Mcfe) | (In millions) | ||||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||||
December 31, | Percentage | December 31, | Percentage | ||||||||||||||||||||||
Increase | Increase | ||||||||||||||||||||||||
2003 | 2002 | (Decrease) | 2003 | 2002 | (Decrease) | ||||||||||||||||||||
Lease operating | $ | 0.54 | $ | 0.52 | 4 | % | $ | 119.3 | $ | 90.8 | 31 | % | |||||||||||||
Production and other taxes | 0.14 | 0.08 | 75 | % | 31.7 | 13.3 | 138 | % | |||||||||||||||||
Transportation | 0.03 | 0.03 | — | 6.4 | 5.7 | 12 | % | ||||||||||||||||||
Depreciation, depletion and amortization | 1.79 | 1.68 | 7 | % | 394.7 | 295.1 | 34 | % | |||||||||||||||||
General and administrative | 0.28 | 0.31 | (10 | %) | 61.6 | 54.4 | 13 | % | |||||||||||||||||
Gas sales obligation settlement and redemption of securities | 0.09 | — | N/M | (2) | 20.5 | — | N/M | (2) | |||||||||||||||||
Total operating expenses | 2.87 | 2.62 | 10 | % | 634.2 | 459.3 | 38 | % | |||||||||||||||||
Total regularly recurring operating expenses(1) | 2.78 | 2.62 | 6 | % | 613.7 | 459.3 | 34 | % |
18
19
27
Year Ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
(In millions) | |||||||||||||
Gross interest expense | $ | 57.7 | $ | 57.8 | $ | 34.5 | |||||||
Capitalized interest | (25.8 | ) | (15.9 | ) | (8.8 | ) | |||||||
Net interest expense | 31.9 | 41.9 | 25.7 | ||||||||||
Distributions on preferred securities | — | 4.6 | 9.3 | ||||||||||
Total interest expense and distributions | $ | 31.9 | $ | 46.5 | $ | 35.0 | |||||||
Year Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
(In millions) | ||||||||||||
Gross interest expense | $ | 72 | $ | 58 | $ | 58 | ||||||
Capitalized interest | (46 | ) | (26 | ) | (16 | ) | ||||||
Net interest expense | 26 | 32 | 42 | |||||||||
Distributions on preferred securities | — | — | 5 | |||||||||
Total interest expense and distributions | $ | 26 | $ | 32 | $ | 47 | ||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
(In millions) | |||||||||||||
Credit arrangements | $ | 5.0 | $ | 4.0 | $ | 2.9 | |||||||
Senior notes | 23.2 | 23.2 | 23.2 | ||||||||||
Interest rate swaps | (2.1 | ) | (0.7 | ) | — | ||||||||
Senior subordinated notes | 30.2 | 22.1 | 5.2 | ||||||||||
Secured notes | 0.4 | 5.6 | 0.6 | ||||||||||
Gas sales obligation | — | 0.8 | 0.3 | ||||||||||
Other | 1.0 | 2.8 | 2.3 | ||||||||||
Gross interest expense | $ | 57.7 | $ | 57.8 | $ | 34.5 | |||||||
Year Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
(In millions) | ||||||||||||
Credit arrangements | $ | 4 | $ | 5 | $ | 4 | ||||||
Senior and subordinated notes | 67 | 53 | 45 | |||||||||
Interest rate swaps | — | (2 | ) | (1 | ) | |||||||
Secured notes | — | 1 | 6 | |||||||||
Other | 1 | 1 | 4 | |||||||||
Gross interest expense | $ | 72 | $ | 58 | $ | 58 | ||||||
20
28
Year Ended December 31, | ||||||||||||||
2004 | 2003 | 2002 | ||||||||||||
(In millions) | ||||||||||||||
Cash Flow Hedges: | ||||||||||||||
Hedge ineffectiveness | $ | 3.8 | $ | (1.1 | ) | $ | (0.5 | ) | ||||||
Unrealized loss due to changes in time value | — | — | (28.6 | ) | ||||||||||
Three-Way Collar Contracts: | ||||||||||||||
Unrealized (loss) due to changes in fair market value | (3.4 | ) | (5.0 | ) | — | |||||||||
Realized (loss) on settlement | (24.2 | ) | — | — | ||||||||||
Total commodity derivative income (expense) | $ | (23.8 | ) | $ | (6.1 | ) | $ | (29.1 | ) | |||||
Year Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
(In millions) | ||||||||||||
Cash Flow Hedges: | ||||||||||||
Hedge ineffectiveness | $ | (8 | ) | $ | 4 | $ | (1 | ) | ||||
Derivatives not designated as cash flow hedges: | ||||||||||||
Unrealized (loss) on discontinued cash flow hedges | (11 | ) | — | — | ||||||||
Realized (loss) on settlement of discontinued cash flow hedges | (51 | ) | — | — | ||||||||
Unrealized (loss) due to changes in fair market value | (191 | ) | (4 | ) | (5 | ) | ||||||
Realized (loss) on settlement | (61 | ) | (24 | ) | — | |||||||
Total commodity derivative expense | $ | (322 | ) | $ | (24 | ) | $ | (6 | ) | |||
21
29
30
22
23
31
• | repaid a net $120 million under our credit arrangements; and | |
• | received net proceeds of $32 million from issuance of shares of common stock. |
• | borrowed a net $25 million under our credit arrangements; | |
• | repurchased $3 million principal amount of secured notes; | |
• | sold 5.4 million shares of our common stock for net proceeds of approximately $277 million, or $52.85 per share; and | |
• | issued $325 million of senior subordinated notes. |
24
Less than | More than | |||||||||||||||||||||
Total | 1 Year | 1-3 Years | 4-5 Years | 5 Years | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||
Debt: | ||||||||||||||||||||||
Bank revolving credit facility | $ | 120.0 | $ | — | $ | 120.0 | $ | — | $ | — | ||||||||||||
Money market lines of credit | — | — | — | — | — | |||||||||||||||||
7.45% Senior Notes due 2007 | 125.0 | — | 125.0 | — | — | |||||||||||||||||
75/8% Senior Notes due 2011 | 175.0 | — | — | — | 175.0 | |||||||||||||||||
83/8% Senior Subordinated Notes due 2012 | 250.0 | — | — | — | 250.0 | |||||||||||||||||
65/8% Senior Subordinated Notes due 2014 | 325.0 | — | — | — | 325.0 | |||||||||||||||||
Total debt | 995.0 | — | 245.0 | — | 750.0 | |||||||||||||||||
Other commitments: | ||||||||||||||||||||||
Interest payments(1) | 511.4 | 70.3 | 195.6 | 111.6 | 133.9 | |||||||||||||||||
Derivative liabilities, net | 28.8 | 6.6 | 20.2 | 2.0 | — | |||||||||||||||||
Asset retirement obligations | 217.1 | 22.9 | 52.4 | 41.7 | 100.1 | |||||||||||||||||
Operating leases(2) | 17.3 | 4.9 | 12.3 | 0.1 | — | |||||||||||||||||
Deferred acquisition payments(3) | 6.5 | 3.2 | 3.3 | — | — | |||||||||||||||||
Total other commitments | 781.1 | 107.9 | 283.8 | 155.4 | 234.0 | |||||||||||||||||
Total contractual cash obligations and other commitments | $ | 1,776.1 | $ | 107.9 | $ | 528.8 | $ | 155.4 | $ | 984.0 | ||||||||||||
Less than | More than | |||||||||||||||||||
Total | 1 Year | 1-3 Years | 4-5 Years | 5 Years | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Debt: | ||||||||||||||||||||
7.45% Senior Notes due 2007 | $ | 125 | $ | — | $ | 125 | $ | — | $ | — | ||||||||||
75/8% Senior Notes due 2011 | 175 | — | — | 175 | — | |||||||||||||||
83/8% Senior Subordinated Notes due 2012 | 250 | — | — | — | 250 | |||||||||||||||
65/8% Senior Subordinated Notes due 2014 | 325 | — | — | — | 325 | |||||||||||||||
Total debt | 875 | — | 125 | 175 | 575 | |||||||||||||||
Other obligations: | ||||||||||||||||||||
Interest payments | 410 | 65 | 175 | 100 | 70 | |||||||||||||||
Derivative liabilities, net | 278 | 88 | 146 | 44 | — | |||||||||||||||
Asset retirement obligations | 260 | 47 | 79 | 43 | 91 | |||||||||||||||
Operating leases(1) | 174 | 47 | 105 | 8 | 14 | |||||||||||||||
Deferred acquisition payments(2) | 20 | 5 | 15 | — | — | |||||||||||||||
Oil and gas activities(3) | 195 | — | — | — | — | |||||||||||||||
Total other obligations | 1,337 | 252 | 520 | 195 | 175 | |||||||||||||||
Total contractual obligations | $ | 2,212 | $ | 252 | $ | 645 | $ | 370 | $ | 750 | ||||||||||
(1) | ||
See Note 15, “Commitments and Contingencies —Lease Commitments,” to our consolidated financial statements set forth in Item 8 in this report. | ||
See Note 4, “Acquisitions, | ||
(3) | See “— Commitments under Joint Operating Agreements” and “— Oil and Gas Activities” below. |
32
• | incur debt secured by certain liens; | |
• | enter into sale/leaseback transactions; and | |
• | enter into merger or consolidation transactions. |
25
• | incur additional debt; | |
• | make restricted payments; | |
• | pay dividends on or redeem our capital stock; | |
• | make certain investments; | |
• | create liens; | |
• | make certain dispositions of assets; | |
• | engage in transactions with affiliates; and | |
• | engage in mergers, consolidations and certain sales of assets. |
33
26
34
27
NYMEX Contract Price Per MMBtu | |||||||||||||||||||||
Collars | |||||||||||||||||||||
Floors | Ceilings | ||||||||||||||||||||
Period and | Volume in | Weighted | Weighted | ||||||||||||||||||
Type of Contract | MMMBtus | Range | Average | Range | Average | ||||||||||||||||
April 2005 – June 2005 | |||||||||||||||||||||
Collar contracts | 11,250 | $ | 6.24 | $ | 5.85 | $7.00 - $8.90 | $ | 7.69 | |||||||||||||
July 2005 – September 2005 | |||||||||||||||||||||
Collar contracts | 10,800 | 6.24 | 5.84 | 7.00 - 8.90 | 7.65 | ||||||||||||||||
October 2005 – December 2005 | |||||||||||||||||||||
Collar contracts | 5,350 | 6.24 | 5.83 | 7.00 - 10.00 | 8.33 | ||||||||||||||||
January 2006 – December 2006 | |||||||||||||||||||||
Collar contracts | 2,400 | 5.80 | �� | 5.80 | 10.00 | 10.00 |
NYMEX Contract Price Per MMBtu | ||||||||||||||||||||||||||||
Collars | ||||||||||||||||||||||||||||
Swaps | Floors | Ceilings | ||||||||||||||||||||||||||
Volume in | (Weighted | Weighted | Weighted | |||||||||||||||||||||||||
Period and Type of Contract | MMMBtus | Average) | Range | Average | Range | Average | ||||||||||||||||||||||
April 2006 – June 2006 | ||||||||||||||||||||||||||||
Price swap contracts | 7,470 | $ | 8.82 | — | — | — | — | |||||||||||||||||||||
Collar contracts | 5,100 | — | $ | 8.00 – $9.35 | $ | 8.27 | $ | 10.50 – $13.70 | $ | 11.44 | ||||||||||||||||||
July 2006 – September 2006 | ||||||||||||||||||||||||||||
Price swap contracts | 7,470 | 8.87 | — | — | — | — | ||||||||||||||||||||||
Collar contracts | 5,100 | — | 8.00 – 9.35 | 8.27 | 10.50 – 13.70 | 11.44 | ||||||||||||||||||||||
October 2006 - December 2006 | ||||||||||||||||||||||||||||
Collar contracts | 3,660 | — | 9.40 | 9.40 | 12.15 – 15.40 | 13.43 | ||||||||||||||||||||||
January 2007 - March 2007 | ||||||||||||||||||||||||||||
Collar contracts | 5,440 | — | 9.40 | 9.40 | 12.15 – 15.40 | 13.43 |
NYMEX Contract Price Per Bbl | |||||||||||||||||||||||||||||
Collars | |||||||||||||||||||||||||||||
Floors | Ceilings | Floor Contracts | |||||||||||||||||||||||||||
Period and | Volume in | Weighted | Weighted | Weighted | |||||||||||||||||||||||||
Type of Contract | Bbls | Range | Average | Range | Average | Range | Average | ||||||||||||||||||||||
January 2005 – March 2005 | |||||||||||||||||||||||||||||
Collar contracts | 60,000 | $ | 41.00 | $ | 41.00 | $ | 64.00 | $ | 64.00 | — | — | ||||||||||||||||||
Floor contracts | 120,000 | — | — | — | — | $ | 41.00 | $ | 41.00 | ||||||||||||||||||||
April 2005 – June 2005 | |||||||||||||||||||||||||||||
Collar contracts | 360,000 | 41.00 | 41.00 | 64.00 | 64.00 | — | — | ||||||||||||||||||||||
July 2005 – September 2005 | |||||||||||||||||||||||||||||
Collar contracts | 360,000 | 41.00 | 41.00 | 64.00 | 64.00 | — | — | ||||||||||||||||||||||
October 2005 – December 2005 | |||||||||||||||||||||||||||||
Collar contracts | 360,000 | 41.00 | 41.00 | 64.00 | 64.00 | — | — |
NYMEX Contract Price Per Bbl | ||||||||||||||||||||||||||||
Collars | ||||||||||||||||||||||||||||
Swaps | Floors | Ceilings | ||||||||||||||||||||||||||
Volume in | (Weighted | Weighted | Weighted | |||||||||||||||||||||||||
Period and Type of Contract | Bbls | Average) | Range | Average | Range | Average | ||||||||||||||||||||||
October 2006 – December 2006 | ||||||||||||||||||||||||||||
Price swap contracts | 30,000 | $ | 70.00 | — | — | — | — | |||||||||||||||||||||
Collar contracts | 60,000 | — | $ | 60.00 | $ | 60.00 | $ | 80.50 – $81.00 | $ | 80.75 | ||||||||||||||||||
January 2007 – December 2007 | ||||||||||||||||||||||||||||
Price swap contracts | 120,000 | 70.00 | — | — | — | — | ||||||||||||||||||||||
Collar contracts | 240,000 | — | 60.00 | 60.00 | 80.50 – 81.00 | 80.75 |
NYMEX Contract Price Per MMBtu | |||||||||||||||||||||||||||||
Collars | |||||||||||||||||||||||||||||
Additional Put | Floors | Ceilings | |||||||||||||||||||||||||||
Period and | Volume in | Weighted | Weighted | Weighted | |||||||||||||||||||||||||
Type of Contract | MMMBtus | Range | Average | Range | Average | Range | Average | ||||||||||||||||||||||
April 2005 – June 2005 | |||||||||||||||||||||||||||||
3-Way collar contracts | 6,150 | $4.50 - $5.15 | $ | 4.86 | $5.50 - $6.15 | $ | 5.86 | $7.45 - $7.60 | $ | 7.50 | |||||||||||||||||||
July 2005 – September 2005 | |||||||||||||||||||||||||||||
3-Way collar contracts | 6,150 | 4.50 - 5.15 | 4.86 | 5.50 - 6.15 | 5.86 | 7.45 - 7.60 | 7.50 | ||||||||||||||||||||||
October 2005 – December 2005 | |||||||||||||||||||||||||||||
3-Way collar contracts | 3,650 | 4.50 - 5.15 | 4.79 | 5.50 - 6.15 | 5.95 | 7.45 - 12.00 | 8.92 | ||||||||||||||||||||||
January 2006 – December 2006 | |||||||||||||||||||||||||||||
3-Way collar contracts | 2,400 | 4.50 - 5.00 | 4.69 | 6.00 - 6.15 | 6.06 | 10.00 -12.00 | 10.75 |
28
NYMEX Contract Price Per Bbl | |||||||||||||||||||||||||||||
Collars | |||||||||||||||||||||||||||||
Additional Put | Floors | Ceilings | |||||||||||||||||||||||||||
Period and | Volume in | Weighted | Weighted | Weighted | |||||||||||||||||||||||||
Type of Contract | Bbls | Range | Average | Range | Average | Range | Average | ||||||||||||||||||||||
January 2005 – March 2005 | |||||||||||||||||||||||||||||
3-Way collar contracts | 80,000 | $ | 40.00 | $ | 40.00 | $45.75 - $46.00 | $ | 45.88 | $ | 50.00 | $ | 50.00 | |||||||||||||||||
April 2005 – June 2005 | |||||||||||||||||||||||||||||
3-Way collar contracts | 120,000 | 40.00 | 40.00 | 45.75 - 46.00 | 45.88 | 50.00 | 50.00 | ||||||||||||||||||||||
July 2005 – September 2005 | |||||||||||||||||||||||||||||
3-Way collar contracts | 120,000 | 40.00 | 40.00 | 45.75 - 46.00 | 45.88 | 50.00 | 50.00 | ||||||||||||||||||||||
October 2005 – December 2005 | |||||||||||||||||||||||||||||
3-Way collar contracts | 120,000 | 40.00 | 40.00 | 45.75 - 46.00 | 45.88 | 50.00 | 50.00 |
35
• | We account for our oil and gas activities under the full cost method.This method of accounting requires the following significant estimates: |
• | quantity of our proved oil and gas reserves; | |
• | costs withheld from amortization; and | |
• | future costs to develop and abandon our oil and gas properties. |
• | Accounting for business combinations requires estimates and assumptionsregarding the value of the assets and liabilities of the acquired company. |
29
• | Accounting for stock-based compensationmay be accounted for under one of two available methods. | |
• | Accounting for commodity derivative activities requires estimates and assumptionsregarding the value of derivative positions. |
36
30
37
31
38
32
39
33
40
34
41
35
42
36
43
37
38
39
40
41
• | drilling results; | |
• | oil and gas prices; | |
• | well and waterflood performance; | |
• | severe weather conditions (such as hurricanes); | |
• | the prices of goods and services; | |
• | the availability of drilling rigs and other support services; | |
• | the availability of capital resources; and | |
• | the other factors affecting our business described above under the |
44
42
45
43
46
44
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk |
Fixed | Variable | |||||||
Rate Debt | Rate Debt | |||||||
(In millions) | ||||||||
Bank revolving credit facility(1) | $ | — | $ | 120 | ||||
7.45% Senior Notes due 2007(2) | 75 | 50 | ||||||
75/8% Senior Notes due 2011(2) | 125 | 50 | ||||||
83/8% Senior Subordinated Notes due 2012 | 250 | — | ||||||
65/8% Senior Subordinated Notes due 2014 | 325 | — | ||||||
$ | 775 | $ | 220 | |||||
Fixed | Variable | |||||||
Rate Debt | Rate Debt | |||||||
(In millions) | ||||||||
Bank revolving credit facility | $ | — | $ | — | ||||
7.45% Senior Notes due 2007(1) | 75 | 50 | ||||||
75/8% Senior Notes due 2011(1) | 125 | 50 | ||||||
83/8% Senior Subordinated Notes due 2012 | 250 | — | ||||||
65/8% Senior Subordinated Notes due 2014 | 325 | — | ||||||
Total long-term debt | $ | 775 | $ | 100 | ||||
(1) | ||
As of December 31, |
47
45
Item 8. | Financial Statements and Supplementary Data |
Page | ||||
48
46
David A. Trice President and Chief Executive Officer | Terry W. Rathert Senior Vice President and Chief Financial Officer |
49
47
48
50
51
49
December 31, | ||||||||||
2004 | 2003 | |||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 58.3 | $ | 15.3 | ||||||
Accounts receivable | 247.7 | 134.8 | ||||||||
Inventories | 7.8 | 0.5 | ||||||||
Derivative assets | 54.5 | 13.8 | ||||||||
Deferred taxes | 1.0 | 12.9 | ||||||||
Other current assets | 22.3 | 61.6 | ||||||||
Total current assets | 391.6 | 238.9 | ||||||||
Oil and gas properties (full cost method, of which $835.4 and $331.1 were excluded from amortization at December 31, 2004 and December 31, 2003, respectively) | 5,907.8 | 4,078.1 | ||||||||
Less – accumulated depreciation, depletion and amortization | (2,132.5 | ) | (1,659.6 | ) | ||||||
3,775.3 | 2,418.5 | |||||||||
Floating production system and pipelines | — | 35.0 | ||||||||
Furniture, fixtures and equipment, net | 18.3 | 5.9 | ||||||||
Derivative assets | 55.6 | 2.2 | ||||||||
Other assets | 21.4 | 16.2 | ||||||||
Goodwill | 65.3 | 16.4 | ||||||||
Total assets | $ | 4,327.5 | $ | 2,733.1 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 32.5 | $ | 30.6 | ||||||
Accrued liabilities | 353.5 | 204.0 | ||||||||
Advances from joint owners | 18.0 | 5.9 | ||||||||
Secured notes payable | — | 2.9 | ||||||||
Asset retirement obligation | 22.9 | 12.1 | ||||||||
Current portion of deferred taxes | 0.1 | — | ||||||||
Derivative liabilities | 47.0 | 44.7 | ||||||||
Total current liabilities | 474.0 | 300.2 | ||||||||
Other liabilities | 15.8 | 13.2 | ||||||||
Derivative liabilities | 83.1 | 13.2 | ||||||||
Long-term debt | 992.4 | 643.5 | ||||||||
Asset retirement obligation | 194.2 | 151.6 | ||||||||
Deferred taxes | 551.1 | 242.8 | ||||||||
Total long-term liabilities | 1,836.6 | 1,064.3 | ||||||||
Commitments and contingencies | — | — | ||||||||
Stockholders’ equity: | ||||||||||
Preferred stock ($0.01 par value, 5,000,000 shares authorized; no shares issued) | — | — | ||||||||
Common stock ($0.01 par value, 200,000,000 and 100,000,000 shares authorized at December 31, 2004 and December 31, 2003, respectively; 63,316,848 and 57,141,807 shares issued and outstanding at December 31, 2004 and December 31, 2003, respectively) | 0.6 | 0.5 | ||||||||
Additional paid-in capital | 1,102.5 | 796.2 | ||||||||
Treasury stock (at cost, 897,977 and 886,247 shares at December 31, 2004 and December 31, 2003, respectively) | (27.3 | ) | (26.7 | ) | ||||||
Unearned compensation | (9.5 | ) | (10.9 | ) | ||||||
Accumulated other comprehensive income (loss): | ||||||||||
Foreign currency translation adjustment | 2.6 | 0.9 | ||||||||
Commodity derivatives | 0.1 | (26.4 | ) | |||||||
Minimum pension liability | — | (0.8 | ) | |||||||
Retained earnings | 947.9 | 635.8 | ||||||||
Total stockholders’ equity | 2,016.9 | 1,368.6 | ||||||||
Total liabilities and stockholders’ equity | $ | 4,327.5 | $ | 2,733.1 | ||||||
December 31, | ||||||||
2005 | 2004 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 39 | $ | 58 | ||||
Accounts receivable | 370 | 248 | ||||||
Inventories | 22 | 8 | ||||||
Derivative assets | 10 | 55 | ||||||
Deferred taxes | 46 | 1 | ||||||
Other current assets | 53 | 22 | ||||||
Total current assets | 540 | 392 | ||||||
Oil and gas properties (full cost method, of which $901 and $835 were excluded from amortization at December 31, 2005 and December 31, 2004, respectively) | 7,042 | 5,908 | ||||||
Less – accumulated depreciation, depletion and amortization | (2,632 | ) | (2,133 | ) | ||||
4,410 | 3,775 | |||||||
Furniture, fixtures and equipment, net | 20 | 18 | ||||||
Derivative assets | 17 | 56 | ||||||
Other assets | 23 | 21 | ||||||
Deferred taxes | 9 | — | ||||||
Goodwill | 62 | 65 | ||||||
Total assets | $ | 5,081 | $ | 4,327 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 41 | $ | 32 | ||||
Accrued liabilities | 454 | 354 | ||||||
Advances from joint owners | 29 | 18 | ||||||
Asset retirement obligation | 47 | 23 | ||||||
Derivative liabilities | 99 | 47 | ||||||
Total current liabilities | 670 | 474 | ||||||
Other liabilities | 21 | 16 | ||||||
Derivative liabilities | 209 | 83 | ||||||
Long-term debt | 870 | 992 | ||||||
Asset retirement obligation | 213 | 194 | ||||||
Deferred taxes | 720 | 551 | ||||||
Total long-term liabilities | 2,033 | 1,836 | ||||||
Commitments and contingencies (Note 15) | — | — | ||||||
Stockholders’ equity: | ||||||||
Preferred stock ($0.01 par value, 5,000,000 shares authorized; no shares issued) | — | — | ||||||
Common stock ($0.01 par value, 200,000,000 shares authorized at December 31, 2005 and 2004; 129,356,162 and 126,647,484 shares issued and outstanding at December 31, 2005 and 2004, respectively) | 1 | 1 | ||||||
Additional paid-in capital | 1,186 | 1,102 | ||||||
Treasury stock (at cost, 1,815,594 and 1,795,954 shares at December 31, 2005 and 2004, respectively) | (27 | ) | (27 | ) | ||||
Unearned compensation | (34 | ) | (10 | ) | ||||
Accumulated other comprehensive income (loss): | ||||||||
Foreign currency translation adjustment | (4 | ) | 3 | |||||
Commodity derivatives | (40 | ) | — | |||||
Retained earnings | 1,296 | 948 | ||||||
Total stockholders’ equity | 2,378 | 2,017 | ||||||
Total liabilities and stockholders’ equity | $ | 5,081 | $ | 4,327 | ||||
52
50
Year Ended December 31, | ||||||||||||||
2004 | 2003 | 2002 | ||||||||||||
Oil and gas revenues | $ | 1,352.7 | $ | 1,017.0 | $ | 626.8 | ||||||||
Operating expenses: | ||||||||||||||
Lease operating | 145.7 | 119.3 | 90.8 | |||||||||||
Production and other taxes | 42.3 | 31.7 | 13.3 | |||||||||||
Transportation | 6.3 | 6.4 | 5.7 | |||||||||||
Depreciation, depletion and amortization | 471.4 | 394.7 | 295.1 | |||||||||||
Ceiling test writedown | 17.0 | — | — | |||||||||||
General and administrative | 84.0 | 61.6 | 54.4 | |||||||||||
Impairment of floating production system and pipelines | 35.0 | — | — | |||||||||||
Gas sales obligation settlement and redemption of securities | — | 20.5 | — | |||||||||||
Total operating expenses | 801.7 | 634.2 | 459.3 | |||||||||||
Income from operations | 551.0 | 382.8 | 167.5 | |||||||||||
Other income (expenses): | ||||||||||||||
Interest expense | (57.7 | ) | (57.8 | ) | (34.5 | ) | ||||||||
Capitalized interest | 25.8 | 15.9 | 8.8 | |||||||||||
Dividends on convertible preferred securities of Newfield Financial Trust I | — | (4.6 | ) | (9.3 | ) | |||||||||
Commodity derivative expense | (23.8 | ) | (6.1 | ) | (29.1 | ) | ||||||||
Other | 3.6 | 1.4 | 4.5 | |||||||||||
(52.1 | ) | (51.2 | ) | (59.6 | ) | |||||||||
Income from continuing operations before income taxes | 498.9 | 331.6 | 107.9 | |||||||||||
Income tax provision: | ||||||||||||||
Current | 61.1 | 21.6 | 37.5 | |||||||||||
Deferred | 125.7 | 99.1 | 1.7 | |||||||||||
186.8 | 120.7 | 39.2 | ||||||||||||
Income from continuing operations | 312.1 | 210.9 | 68.7 | |||||||||||
Income (loss) from discontinued operations, net of tax | — | (17.0 | ) | 5.1 | ||||||||||
Income before cumulative effect of change in accounting principle | 312.1 | 193.9 | 73.8 | |||||||||||
Cumulative effect of change in accounting principle, net of tax: | ||||||||||||||
Adoption of SFAS No. 143 | — | 5.6 | — | |||||||||||
Net income | $ | 312.1 | $ | 199.5 | $ | 73.8 | ||||||||
Earnings per share: | ||||||||||||||
Basic — | ||||||||||||||
Income from continuing operations | $ | 5.35 | $ | 3.88 | $ | 1.52 | ||||||||
Income (loss) from discontinued operations | — | (0.31 | ) | 0.12 | ||||||||||
Cumulative effect of change in accounting principle, net of tax | — | 0.10 | — | |||||||||||
Net income | $ | 5.35 | $ | 3.67 | $ | 1.64 | ||||||||
Diluted — | ||||||||||||||
Income from continuing operations | $ | 5.26 | $ | 3.77 | $ | 1.51 | ||||||||
Income (loss) from discontinued operations | — | (0.30 | ) | 0.10 | ||||||||||
Cumulative effect of change in accounting principle, net of tax | — | 0.10 | — | |||||||||||
Net income | $ | 5.26 | $ | 3.57 | $ | 1.61 | ||||||||
Weighted average number of shares outstanding for basic earnings per share | 58.3 | 54.3 | 45.1 | |||||||||||
Weighted average number of shares outstanding for diluted earnings per share | 59.3 | 56.7 | 49.6 | |||||||||||
Year Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Oil and gas revenues | $ | 1,762 | $ | 1,353 | $ | 1,017 | ||||||
Operating expenses: | ||||||||||||
Lease operating | 205 | 152 | 125 | |||||||||
Production and other taxes | 64 | 42 | 32 | |||||||||
Depreciation, depletion and amortization | 521 | 472 | 395 | |||||||||
Ceiling test writedown | 10 | 17 | — | |||||||||
General and administrative | 104 | 84 | 62 | |||||||||
Other | (29 | ) | 35 | 20 | ||||||||
Total operating expenses | 875 | 802 | 634 | |||||||||
Income from operations | 887 | 551 | 383 | |||||||||
Other income (expense): | ||||||||||||
Interest expense | (72 | ) | (58 | ) | (58 | ) | ||||||
Capitalized interest | 46 | 26 | 16 | |||||||||
Dividends on convertible preferred securities of Newfield Financial Trust I | — | — | (5 | ) | ||||||||
Commodity derivative expense | (322 | ) | (24 | ) | (6 | ) | ||||||
Other | 4 | 4 | 2 | |||||||||
(344 | ) | (52 | ) | (51 | ) | |||||||
Income from continuing operations before income taxes | 543 | 499 | 332 | |||||||||
Income tax provision: | ||||||||||||
Current | 70 | 62 | 22 | |||||||||
Deferred | 125 | 125 | 99 | |||||||||
195 | 187 | 121 | ||||||||||
Income from continuing operations | 348 | 312 | 211 | |||||||||
Loss from discontinued operations, net of tax | — | — | (17 | ) | ||||||||
Income before cumulative effect of change in accounting principle | 348 | 312 | 194 | |||||||||
Cumulative effect of change in accounting principle, net of tax: | ||||||||||||
Adoption of SFAS No. 143 | — | — | 6 | |||||||||
Net income | $ | 348 | $ | 312 | $ | 200 | ||||||
Earnings per share: | ||||||||||||
Basic — | ||||||||||||
Income from continuing operations | $ | 2.78 | $ | 2.68 | $ | 1.94 | ||||||
Loss from discontinued operations | — | — | (0.16 | ) | ||||||||
Cumulative effect of change in accounting principle, net of tax | — | — | 0.05 | |||||||||
Net income | $ | 2.78 | $ | 2.68 | $ | 1.83 | ||||||
Diluted — | ||||||||||||
Income from continuing operations | $ | 2.73 | $ | 2.63 | $ | 1.88 | ||||||
Loss from discontinued operations | — | — | (0.15 | ) | ||||||||
Cumulative effect of change in accounting principle, net of tax | — | — | 0.05 | |||||||||
Net income | $ | 2.73 | $ | 2.63 | $ | 1.78 | ||||||
Weighted average number of shares outstanding for basic earnings per share | 125 | 117 | 109 | |||||||||
Weighted average number of shares outstanding for diluted earnings per share | 128 | 119 | 113 | |||||||||
53
51
Accumulated | ||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional | Other | Total | ||||||||||||||||||||||||||||||||||
Paid-In | Unearned | Retained | Comprehensive | Stockholders’ | ||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Compensation | Earnings | Income (Loss) | Equity | ||||||||||||||||||||||||||||||
Balance, December 31, 2001 | 45.0 | $ | 0.5 | (0.9 | ) | $ | (25.8 | ) | $ | 364.7 | $ | (7.8 | ) | $ | 362.5 | $ | 16.0 | $ | 710.1 | |||||||||||||||||||
Issuance of common stock | 7.6 | — | 267.7 | 267.7 | ||||||||||||||||||||||||||||||||||
Issuance of restricted stock, less amortization and cancellations | — | — | 1.4 | (1.1 | ) | 0.3 | ||||||||||||||||||||||||||||||||
Treasury stock, at cost | — | (0.4 | ) | (0.4 | ) | |||||||||||||||||||||||||||||||||
Amortization of stock compensation | 2.5 | 2.5 | ||||||||||||||||||||||||||||||||||||
Tax benefit from exercise of stock options | 2.5 | 2.5 | ||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||
Net income | 73.8 | 73.8 | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax of ($2.7) | 5.0 | 5.0 | ||||||||||||||||||||||||||||||||||||
Reclassification adjustments for settled hedging positions, net of tax of $8.4 | (15.6 | ) | (15.6 | ) | ||||||||||||||||||||||||||||||||||
Changes in fair value of outstanding hedging positions, net of tax of $19.7 | (36.6 | ) | (36.6 | ) | ||||||||||||||||||||||||||||||||||
Total comprehensive income | 26.6 | |||||||||||||||||||||||||||||||||||||
Balance, December 31, 2002 | 52.6 | 0.5 | (0.9 | ) | (26.2 | ) | 636.3 | (6.4 | ) | 436.3 | (31.2 | ) | 1,009.3 | |||||||||||||||||||||||||
Issuance of common stock | 4.3 | — | 147.5 | 147.5 | ||||||||||||||||||||||||||||||||||
Issuance of restricted stock, less amortization of $1.0 and cancellations | 0.2 | — | 7.5 | (6.5 | ) | 1.0 | ||||||||||||||||||||||||||||||||
Treasury stock, at cost | — | (0.5 | ) | (0.5 | ) | |||||||||||||||||||||||||||||||||
Amortization of stock compensation | 2.0 | 2.0 | ||||||||||||||||||||||||||||||||||||
Tax benefit from exercise of stock options | 4.9 | 4.9 | ||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||
Net income | 199.5 | 199.5 | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax of ($2.6) | 4.8 | 4.8 | ||||||||||||||||||||||||||||||||||||
Reclassification adjustments for settled hedging positions, net of tax of $25.9 | (48.1 | ) | (48.1 | ) | ||||||||||||||||||||||||||||||||||
Changes in fair value of outstanding hedging positions, net of tax of ($26.4) | 49.0 | 49.0 | ||||||||||||||||||||||||||||||||||||
Minimum pension liability, net of tax of $0.4 | (0.8 | ) | (0.8 | ) | ||||||||||||||||||||||||||||||||||
Total comprehensive income | 204.4 | |||||||||||||||||||||||||||||||||||||
Balance, December 31, 2003 | 57.1 | 0.5 | (0.9 | ) | (26.7 | ) | 796.2 | (10.9 | ) | 635.8 | (26.3 | ) | 1,368.6 | |||||||||||||||||||||||||
Issuance of common stock | 6.1 | 0.1 | 297.2 | 297.3 | ||||||||||||||||||||||||||||||||||
Issuance of restricted stock, less amortization and cancellations | 0.1 | — | 2.7 | (2.4 | ) | 0.3 | ||||||||||||||||||||||||||||||||
Treasury stock, at cost | — | (0.6 | ) | (0.6 | ) | |||||||||||||||||||||||||||||||||
Amortization of stock compensation | 3.8 | 3.8 | ||||||||||||||||||||||||||||||||||||
Tax benefit from exercise of stock options | 6.4 | 6.4 | ||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||
Net income | 312.1 | 312.1 | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax of ($0.9) | 1.7 | 1.7 | ||||||||||||||||||||||||||||||||||||
Reclassification adjustments for settled hedging positions, net of tax of $30.6 | (56.8 | ) | (56.8 | ) | ||||||||||||||||||||||||||||||||||
Changes in fair value of outstanding hedging positions, net of tax of ($44.9) | 83.3 | 83.3 | ||||||||||||||||||||||||||||||||||||
Minimum pension liability, net of tax of ($0.4) | 0.8 | 0.8 | ||||||||||||||||||||||||||||||||||||
Total comprehensive income | 341.1 | |||||||||||||||||||||||||||||||||||||
Balance, December 31, 2004 | 63.3 | $ | 0.6 | (0.9 | ) | $ | (27.3 | ) | $ | 1,102.5 | $ | (9.5 | ) | $ | 947.9 | $ | 2.7 | $ | 2,016.9 | |||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||||||||||
Additional | Other | Total | ||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Paid-In | Unearned | Retained | Comprehensive | Stockholders’ | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Compensation | Earnings | Income (Loss) | Equity | ||||||||||||||||||||||||||||
Balance, December 31, 2002 | 105.2 | $ | 1 | (1.8 | ) | $ | (26 | ) | $ | 636 | $ | (7 | ) | $ | 436 | $ | (31 | ) | $ | 1,009 | ||||||||||||||||
Issuance of common stock | 8.6 | — | 148 | 148 | ||||||||||||||||||||||||||||||||
Issuance of restricted stock, less amortization and cancellations | 0.4 | — | 7 | (6 | ) | 1 | ||||||||||||||||||||||||||||||
Treasury stock, at cost | — | (1 | ) | (1 | ) | |||||||||||||||||||||||||||||||
Amortization of stock compensation | 2 | 2 | ||||||||||||||||||||||||||||||||||
Tax benefit from exercise of stock options | 5 | 5 | ||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||
Net income | 200 | 200 | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax of ($3) | 5 | 5 | ||||||||||||||||||||||||||||||||||
Reclassification adjustments for settled hedging positions, net of tax of $26 | (48 | ) | (48 | ) | ||||||||||||||||||||||||||||||||
Changes in fair value of outstanding hedging positions, net of tax of ($26) | 49 | 49 | ||||||||||||||||||||||||||||||||||
Minimum pension liability, net of tax | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||
Total comprehensive income | 205 | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2003 | 114.2 | 1 | (1.8 | ) | (27 | ) | 796 | (11 | ) | 636 | (26 | ) | 1,369 | |||||||||||||||||||||||
Issuance of common stock | 12.2 | — | 297 | 297 | ||||||||||||||||||||||||||||||||
Issuance of restricted stock, less amortization and cancellations | 0.2 | — | 3 | (3 | ) | — | ||||||||||||||||||||||||||||||
Amortization of stock compensation | 4 | 4 | ||||||||||||||||||||||||||||||||||
Tax benefit from exercise of stock options | 6 | 6 | ||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||
Net income | 312 | 312 | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax of ($1) | 2 | 2 | ||||||||||||||||||||||||||||||||||
Reclassification adjustments for settled hedging positions, net of tax of $31 | (57 | ) | (57 | ) | ||||||||||||||||||||||||||||||||
Changes in fair value of outstanding hedging positions, net of tax of ($45) | 83 | 83 | ||||||||||||||||||||||||||||||||||
Minimum pension liability, net of tax | 1 | 1 | ||||||||||||||||||||||||||||||||||
Total comprehensive income | 341 | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2004 | 126.6 | 1 | (1.8 | ) | (27 | ) | 1,102 | (10 | ) | 948 | 3 | 2,017 | ||||||||||||||||||||||||
Issuance of common stock | 2.1 | — | 33 | 33 | ||||||||||||||||||||||||||||||||
Issuance of restricted stock, less amortization and cancellations | 0.7 | — | 34 | (26 | ) | 8 | ||||||||||||||||||||||||||||||
Amortization of stock compensation | 2 | 2 | ||||||||||||||||||||||||||||||||||
Tax benefit from exercise of stock options | 17 | 17 | ||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||
Net income | 348 | 348 | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax of $3 | (7 | ) | (7 | ) | ||||||||||||||||||||||||||||||||
Reclassification adjustments for settled hedging positions, net of tax of $60 | (110 | ) | (110 | ) | ||||||||||||||||||||||||||||||||
Reclassification adjustments for discontinued cash flow hedges, net of tax of $3 | (7 | ) | (7 | ) | ||||||||||||||||||||||||||||||||
Changes in fair value of outstanding hedging positions, net of tax of ($41) | 77 | 77 | ||||||||||||||||||||||||||||||||||
Total comprehensive income | 301 | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2005 | 129.4 | $ | 1 | (1.8 | ) | $ | (27 | ) | $ | 1,186 | $ | (34 | ) | $ | 1,296 | $ | (44 | ) | $ | 2,378 | ||||||||||||||||
54
52
Year Ended December 31, | ||||||||||||||||
2004 | 2003 | 2002 | ||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 312.1 | $ | 199.5 | $ | 73.8 | ||||||||||
Adjustments to reconcile net income to net cash provided by continuing operating activities: | ||||||||||||||||
(Income) loss from discontinued operations, net of tax | — | 17.0 | (5.1 | ) | ||||||||||||
Depreciation, depletion and amortization | 471.4 | 394.7 | 295.1 | |||||||||||||
Deferred taxes | 125.7 | 99.1 | 1.8 | |||||||||||||
Stock compensation | 4.1 | 3.0 | 2.8 | |||||||||||||
Commodity derivative (income) expense | (0.4 | ) | 6.1 | 29.1 | ||||||||||||
Impairment of floating production system and pipelines | 35.0 | — | — | |||||||||||||
Gas sales obligation settlement and redemption of securities | — | 20.5 | — | |||||||||||||
Ceiling test writedown | 17.0 | — | — | |||||||||||||
Cumulative effect of change in accounting principle | — | (5.6 | ) | — | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Increase in accounts receivable | (100.1 | ) | (4.4 | ) | (12.8 | ) | ||||||||||
(Increase) decrease in inventories | (4.7 | ) | 0.7 | 0.2 | ||||||||||||
(Increase) decrease in other current assets | 58.6 | (34.1 | ) | (8.5 | ) | |||||||||||
(Increase) decrease in other assets | (3.4 | ) | 4.3 | (9.5 | ) | |||||||||||
Increase (decrease) in accounts payable and accrued liabilities | 80.0 | (22.8 | ) | 13.3 | ||||||||||||
Decrease in commodity derivative liabilities | (10.5 | ) | (14.2 | ) | — | |||||||||||
Increase in advances from joint owners | 12.1 | 2.3 | 3.6 | |||||||||||||
Increase (decrease) in other liabilities | 0.6 | (6.9 | ) | (0.5 | ) | |||||||||||
Net cash provided by continuing activities | 997.5 | 659.2 | 383.3 | |||||||||||||
Net cash provided by discontinued activities | — | 10.3 | 20.2 | |||||||||||||
Net cash provided by operating activities | 997.5 | 669.5 | 403.5 | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of business, net of cash acquired of $2.0, $0.8 and $17.8 for 2004, 2003 and 2002, respectively | (755.7 | ) | (90.2 | ) | (204.4 | ) | ||||||||||
Proceeds from sale of business | — | 9.7 | — | |||||||||||||
Proceeds from sale of oil and gas properties | 16.7 | — | — | |||||||||||||
Additions to oil and gas properties | (853.0 | ) | (530.9 | ) | (295.0 | ) | ||||||||||
Additions to furniture, fixtures and equipment | (6.8 | ) | (3.3 | ) | (2.4 | ) | ||||||||||
Net cash used in continuing activities | (1,598.8 | ) | (614.7 | ) | (501.8 | ) | ||||||||||
Net cash used in discontinued activities | — | (3.1 | ) | (16.3 | ) | |||||||||||
Net cash used in investing activities | (1,598.8 | ) | (617.8 | ) | (518.1 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from borrowings under credit arrangements | 1,254.0 | 1,569.0 | 654.7 | |||||||||||||
Repayments of borrowings under credit arrangements | (1,229.0 | ) | (1,510.0 | ) | (747.7 | ) | ||||||||||
Proceeds from issuance of common stock | 297.3 | 149.3 | 7.8 | |||||||||||||
Purchases of treasury stock | (0.6 | ) | (0.5 | ) | (0.4 | ) | ||||||||||
Proceeds from issuance of senior subordinated notes | 325.0 | — | 247.9 | |||||||||||||
Repayments of secured notes | — | (11.2 | ) | — | ||||||||||||
Repurchases of secured notes | (2.9 | ) | (63.1 | ) | (23.6 | ) | ||||||||||
Gas sales obligation settlement | — | (62.0 | ) | — | ||||||||||||
Deliveries under the gas sales obligation | — | (8.4 | ) | (1.7 | ) | |||||||||||
Redemption of trust preferred securities | — | (148.5 | ) | — | ||||||||||||
Net cash provided by (used in) continuing activities | 643.8 | (85.4 | ) | 137.0 | ||||||||||||
Net cash provided by (used in) discontinued activities | — | — | — | |||||||||||||
Net cash provided by (used in) financing activities | 643.8 | (85.4 | ) | 137.0 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0.5 | 0.1 | (0.1 | ) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 43.0 | (33.6 | ) | 22.3 | ||||||||||||
Cash and cash equivalents from continuing operations, beginning of period | 15.3 | 33.8 | 8.7 | |||||||||||||
Cash and cash equivalents from discontinued operations, beginning of period | — | 15.1 | 17.9 | |||||||||||||
Cash and cash equivalents, end of period | $ | 58.3 | $ | 15.3 | $ | 48.9 | ||||||||||
Year Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 348 | $ | 312 | $ | 200 | ||||||
Adjustments to reconcile net income to net cash provided by continuing operating activities: | ||||||||||||
Loss from discontinued operations, net of tax | — | — | 17 | |||||||||
Depreciation, depletion and amortization | 521 | 472 | 395 | |||||||||
Deferred taxes | 125 | 125 | 99 | |||||||||
Stock compensation | 10 | 4 | 3 | |||||||||
Commodity derivative expense | 210 | — | 6 | |||||||||
Impairment (gain on sale) of floating production system and pipelines | (7 | ) | 35 | — | ||||||||
Gas sales obligation settlement and redemption of securities | — | — | 20 | |||||||||
Ceiling test writedown | 10 | 17 | — | |||||||||
Cumulative effect of change in accounting principle | — | — | (6 | ) | ||||||||
Changes in operating assets and liabilities: | ||||||||||||
Increase in accounts receivable | (122 | ) | (100 | ) | (4 | ) | ||||||
(Increase) decrease in inventories | (15 | ) | (5 | ) | 1 | |||||||
(Increase) decrease in other current assets | (14 | ) | 59 | (34 | ) | |||||||
(Increase) decrease in other assets | 2 | (3 | ) | 4 | ||||||||
Increase (decrease) in accounts payable and accrued liabilities | 41 | 80 | (23 | ) | ||||||||
Decrease in commodity derivative liabilities | (14 | ) | (11 | ) | (14 | ) | ||||||
Increase in advances from joint owners | 11 | 12 | 2 | |||||||||
Increase (decrease) in other liabilities | 3 | — | (7 | ) | ||||||||
Net cash provided by continuing activities | 1,109 | 997 | 659 | |||||||||
Net cash provided by discontinued activities | — | — | 10 | |||||||||
Net cash provided by operating activities | 1,109 | 997 | 669 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of business, net of cash acquired of $2 and $1 for 2004 and 2003, respectively | — | (756 | ) | (90 | ) | |||||||
Proceeds from sale of business | — | — | 10 | |||||||||
Proceeds from sale of oil and gas properties | 11 | 17 | — | |||||||||
Additions to oil and gas properties | (1,047 | ) | (853 | ) | (531 | ) | ||||||
Additions to furniture, fixtures and equipment | (7 | ) | (7 | ) | (4 | ) | ||||||
Proceeds from sale of floating production system and pipelines | 7 | — | — | |||||||||
Net cash used in continuing activities | (1,036 | ) | (1,599 | ) | (615 | ) | ||||||
Net cash used in discontinued activities | — | — | (3 | ) | ||||||||
Net cash used in investing activities | (1,036 | ) | (1,599 | ) | (618 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from borrowings under credit arrangements | 868 | 1,254 | 1,569 | |||||||||
Repayments of borrowings under credit arrangements | (988 | ) | (1,229 | ) | (1,510 | ) | ||||||
Proceeds from issuance of common stock | 32 | 297 | 149 | |||||||||
Proceeds from issuance of senior subordinated notes | — | 325 | — | |||||||||
Repayments of secured notes | — | — | (11 | ) | ||||||||
Repurchases of secured notes | — | (3 | ) | (63 | ) | |||||||
Gas sales obligation settlement | — | — | (62 | ) | ||||||||
Deliveries under the gas sales obligation | — | — | (8 | ) | ||||||||
Redemption of trust preferred securities | — | — | (149 | ) | ||||||||
Net cash provided by (used in) continuing activities | (88 | ) | 644 | (85 | ) | |||||||
Net cash provided by (used in) discontinued activities | — | — | — | |||||||||
Net cash provided by (used in) financing activities | (88 | ) | 644 | (85 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (4 | ) | 1 | — | ||||||||
Increase (decrease) in cash and cash equivalents | (19 | ) | 43 | (34 | ) | |||||||
Cash and cash equivalents from continuing operations, beginning of period | 58 | 15 | 34 | |||||||||
Cash and cash equivalents from discontinued operations, beginning of period | — | — | 15 | |||||||||
Cash and cash equivalents, end of period | $ | 39 | $ | 58 | $ | 15 | ||||||
55
53
1. | Organization and |
56
54
57
55
• | the present value (10% per annum discount rate) of estimated future net revenues from proved reserves (based on end of period oil and gas prices as adjusted for location and quality differences and the effects of hedging); plus | |
• | the | |
• | related income tax effects. |
56
58
• | an initial ARO as a liability on our consolidated balance sheet; | |
• | an increase in oil and gas properties for the cost to abandon our oil and gas properties; | |
• | cumulative accretion of the ARO from the period incurred up to the January 1, 2003 adoption date; and | |
• | cumulative depreciation on the additional capitalized costs included in oil and gas properties up to the January 1, 2003 adoption date. |
Balance at January 1, 2003 | $ | 128.5 | |||
Accretion expense | 7.5 | ||||
Additions | 31.8 | ||||
Settlements | (4.1 | ) | |||
Balance at December 31, 2003 | 163.7 | ||||
Accretion expense | 11.1 | ||||
Additions | 48.5 | ||||
Settlements | (6.2 | ) | |||
Balance of ARO at December 31, 2004 | $ | 217.1 | |||
Net income: | ||||||
As reported | $ | 73.8 | ||||
Pro forma | 72.8 | |||||
Earnings per share: | ||||||
Basic — | ||||||
As reported | $ | 1.64 | ||||
Pro forma | 1.61 | |||||
Diluted — | ||||||
As reported | $ | 1.61 | ||||
Pro forma | 1.59 |
57
Balance at January 1, 2003 $ 129 Accretion expense 7 Additions 32 Settlements (4 ) Balance at December 31, 2003 164 Accretion expense 11 Additions 48 Settlements (6 ) Balance at December 31, 2004 217 Accretion expense 13 44 Settlements (14 ) Balance at December 31, 2005 $ 260
(1) | Includes a $34 million increase in the abandonment estimate of Gulf of Mexico platforms and facilities that were damaged or destroyed by Hurricanes Katrina and Rita. |
59
58
Year Ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
(In millions, except per share | |||||||||||||
data) | |||||||||||||
Net income: | |||||||||||||
As reported(1) | $ | 312.1 | $ | 199.5 | $ | 73.8 | |||||||
Pro forma(2) | 304.6 | 193.2 | 68.6 | ||||||||||
Basic earnings per common share — | |||||||||||||
As reported | $ | 5.35 | $ | 3.67 | $ | 1.64 | |||||||
Pro forma | 5.22 | 3.56 | 1.52 | ||||||||||
Diluted earnings per common share — | |||||||||||||
As reported | $ | 5.26 | $ | 3.57 | $ | 1.61 | |||||||
Pro forma | 5.14 | 3.46 | 1.51 |
Year Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
(In millions, except | ||||||||||||
per share data) | ||||||||||||
Net income: | ||||||||||||
As reported(1) | $ | 348 | $ | 312 | $ | 200 | ||||||
Pro forma(2) | 339 | �� | 305 | 193 | ||||||||
Basic earnings per common share — | ||||||||||||
As reported | $ | 2.78 | $ | 2.68 | $ | 1.83 | ||||||
Pro forma | 2.70 | 2.61 | 1.78 | |||||||||
Diluted earnings per common share — | ||||||||||||
As reported | $ | 2.73 | $ | 2.63 | $ | 1.78 | ||||||
Pro forma | 2.65 | 2.57 | 1.73 |
(1) | Includes stock-based compensation costs, net of related tax effects, of | |
(2) | Includes stock-based compensation costs, net of related tax effects, that would have been included in the determination of net income had the fair value based method been applied of |
60
59
61
60
62
61
2. | Discontinued Operations: |
For the Year Ended | ||||||||
December 31, | ||||||||
2003 | 2002 | |||||||
(In millions) | ||||||||
Revenues | $ | 15.5 | $ | 34.9 | ||||
Operating expenses(1) | (21.9 | ) | (29.1 | ) | ||||
Income (loss) from operations | (6.4 | ) | 5.8 | |||||
Other expense(2) | (3.5 | ) | (2.9 | ) | ||||
Income (loss) before income taxes | (9.9 | ) | 2.9 | |||||
Income tax benefit | 2.8 | 2.2 | ||||||
Income (loss) from operations | (7.1 | ) | 5.1 | |||||
Loss on sale | (9.9 | ) | — | |||||
Income (loss) from discontinued operations | $ | (17.0 | ) | $ | 5.1 | |||
For the | ||||
Year Ended | ||||
December 31, | ||||
2003 | ||||
(In millions) | ||||
Revenues | $ | 16 | ||
Operating expenses(1) | (22 | ) | ||
Loss from operations | (6 | ) | ||
Other expense(2) | (4 | ) | ||
Loss before income taxes | (10 | ) | ||
Income tax benefit | 3 | |||
Loss from operations | (7 | ) | ||
Loss on sale | (10 | ) | ||
Loss from discontinued operations | $ | (17 | ) | |
(1) | Operating expenses for the year ended December 31, 2003 include a ceiling test writedown of | |
(2) | Other expense primarily consists of foreign currency exchange gains and losses. |
3. | Earnings Per Share: |
62
63
2004 | 2003 | 2002 | |||||||||||||
(In millions, except per share data) | |||||||||||||||
Income (numerator): | |||||||||||||||
Income from continuing operations | $ | 312.1 | $ | 210.9 | $ | 68.7 | |||||||||
Income (loss) from discontinued operations, net of tax | — | (17.0 | ) | 5.1 | |||||||||||
Income before cumulative effect of change in accounting principle | 312.1 | 193.9 | 73.8 | ||||||||||||
Cumulative effect of change in accounting principle, net of tax | — | 5.6 | — | ||||||||||||
Net income — basic | 312.1 | 199.5 | 73.8 | ||||||||||||
After-tax dividends on convertible trust preferred securities | — | 3.0 | 6.1 | ||||||||||||
Net income — diluted | $ | 312.1 | $ | 202.5 | $ | 79.9 | |||||||||
Weighted average shares (denominator): | |||||||||||||||
Weighted average shares — basic | 58.3 | 54.3 | 45.1 | ||||||||||||
Dilution effect of stock options and unvested restricted stock outstanding at end of period | 1.0 | 0.5 | 0.6 | ||||||||||||
Dilution effect of convertible trust preferred securities | — | 1.9 | 3.9 | ||||||||||||
Weighted average shares — diluted | 59.3 | 56.7 | 49.6 | ||||||||||||
Earnings per share: | |||||||||||||||
Basic: | |||||||||||||||
Income from continuing operations | $ | 5.35 | $ | 3.88 | $ | 1.52 | |||||||||
Income (loss) from discontinued operations | — | (0.31 | ) | 0.12 | |||||||||||
Cumulative effect of change in accounting principle, net of tax | — | 0.10 | — | ||||||||||||
Net income | $ | 5.35 | $ | 3.67 | $ | 1.64 | |||||||||
Diluted: | |||||||||||||||
Income from continuing operations | $ | 5.26 | $ | 3.77 | $ | 1.51 | |||||||||
Income (loss) from discontinued operations | — | (0.30 | ) | 0.10 | |||||||||||
Cumulative effect of change in accounting principle, net of tax | — | 0.10 | — | ||||||||||||
Net income | $ | 5.26 | $ | 3.57 | $ | 1.61 | |||||||||
2005 | 2004 | 2003 | ||||||||||
(In millions, except per share data) | ||||||||||||
Income (numerator): | ||||||||||||
Income from continuing operations | $ | 348 | $ | 312 | $ | 211 | ||||||
Loss from discontinued operations, net of tax | — | — | (17 | ) | ||||||||
Income before cumulative effect of change in accounting principle | 348 | 312 | 194 | |||||||||
Cumulative effect of change in accounting principle, net of tax | — | — | 6 | |||||||||
Net income — basic | 348 | 312 | 200 | |||||||||
After-tax dividends on convertible trust preferred securities | — | — | 3 | |||||||||
Net income — diluted | $ | 348 | $ | 312 | $ | 203 | ||||||
Weighted average shares (denominator): | ||||||||||||
Weighted average shares — basic | 125 | 117 | 109 | |||||||||
Dilution effect of stock options and unvested restricted stock outstanding at end of period | 3 | 2 | 1 | |||||||||
Dilution effect of convertible trust preferred securities | — | — | 3 | |||||||||
Weighted average shares — diluted | 128 | 119 | 113 | |||||||||
Earnings per share: | ||||||||||||
Basic: | ||||||||||||
Income from continuing operations | $ | 2.78 | $ | 2.68 | $ | 1.94 | ||||||
Loss from discontinued operations | — | — | (0.16 | ) | ||||||||
Cumulative effect of change in accounting principle, net of tax | — | — | 0.05 | |||||||||
Net income | $ | 2.78 | $ | 2.68 | $ | 1.83 | ||||||
Diluted: | ||||||||||||
Income from continuing operations | $ | 2.73 | $ | 2.63 | $ | 1.88 | ||||||
Loss from discontinued operations | — | — | (0.15 | ) | ||||||||
Cumulative effect of change in accounting principle, net of tax | — | — | 0.05 | |||||||||
Net income | $ | 2.73 | $ | 2.63 | $ | 1.78 | ||||||
63
4. | Acquisitions: |
64
64
65
Year Ended December 31, | |||||||||
2004 | 2003 | ||||||||
(Unaudited) | |||||||||
(In millions, except per share) | |||||||||
Pro forma: | |||||||||
Revenue | $ | 1,456.9 | $ | 1,147.2 | |||||
Income from operations | 589.1 | 408.9 | |||||||
Net income | 344.2 | 223.2 | |||||||
Basic earnings per share | $ | 5.58 | $ | 3.74 | |||||
Diluted earnings per share | $ | 5.50 | $ | 3.74 |
Year Ended December 31, | ||||||||
2004 | 2003 | |||||||
(Unaudited) (In millions, except per share) | ||||||||
Pro forma: | ||||||||
Revenue | $ | 1,457 | $ | 1,147 | ||||
Income from operations | 589 | 409 | ||||||
Net income | 344 | 223 | ||||||
Basic earnings per share | $ | 2.79 | $ | 1.87 | ||||
Diluted earnings per share | $ | 2.75 | $ | 1.87 |
5. | Oil and Gas Assets: |
65
December 31, | December 31, | December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||||
(In millions) | |||||||||||||||
Subject to amortization | $ | 5,072.4 | $ | 3,747.0 | $ | 3,037.5 | |||||||||
Not subject to amortization | |||||||||||||||
Exploration wells in progress | 59.9 | 8.2 | 8.2 | ||||||||||||
Development wells in progress | 38.2 | 31.1 | 6.7 | ||||||||||||
Capitalized interest | 39.3 | 23.1 | 14.0 | ||||||||||||
Fee mineral interests | 23.3 | 23.3 | 23.1 | ||||||||||||
Other capital costs: | |||||||||||||||
Incurred in 2004 | 478.4 | — | — | ||||||||||||
Incurred in 2003 | 76.9 | 101.5 | — | ||||||||||||
Incurred in 2002 | 62.4 | 70.0 | 112.5 | ||||||||||||
Incurred in 2001 and prior | 57.0 | 73.9 | 97.0 | ||||||||||||
Total not subject to amortization | 835.4 | 331.1 | 261.5 | ||||||||||||
Gross oil and gas properties | 5,907.8 | 4,078.1 | 3,299.0 | ||||||||||||
Accumulated depreciation, depletion and amortization | (2,132.5 | ) | (1,659.6 | ) | (1,312.1 | ) | |||||||||
Net oil and gas properties | $ | 3,775.3 | $ | 2,418.5 | $ | 1,986.9 | |||||||||
December 31, | December 31, | December 31, | ||||||||||
2005 | 2004 | 2003 | ||||||||||
(In millions) | ||||||||||||
Subject to amortization | $ | 6,141 | $ | 5,073 | $ | 3,747 | ||||||
Not subject to amortization | ||||||||||||
Exploration in progress | 56 | 60 | 8 | |||||||||
Development in progress | 107 | 38 | 31 | |||||||||
Capitalized interest | 71 | 39 | 23 | |||||||||
Fee mineral interests | 23 | 23 | 23 | |||||||||
Other capital costs: | ||||||||||||
Incurred in 2005 | 110 | — | — | |||||||||
Incurred in 2004 | 413 | 479 | — | |||||||||
Incurred in 2003 | 51 | 77 | 102 | |||||||||
Incurred in 2002 and prior | 70 | 119 | 144 | |||||||||
Total not subject to amortization | 901 | 835 | 331 | |||||||||
Gross oil and gas properties | 7,042 | 5,908 | 4,078 | |||||||||
Accumulated depreciation, depletion and amortization | (2,632 | ) | (2,133 | ) | (1,660 | ) | ||||||
Net oil and gas properties | $ | 4,410 | $ | 3,775 | $ | 2,418 | ||||||
66
66
6. | Commodity Derivative Instruments and Hedging Activities: |
67
67
68
NYMEX Contract Price Per MMBtu | |||||||||||||||||||||||||||||||||||||
Collars | |||||||||||||||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||||||||||||||
Floors | Ceilings | Floor Contracts | Fair Value | ||||||||||||||||||||||||||||||||||
Swaps | Asset | ||||||||||||||||||||||||||||||||||||
Volume in | (Weighted | Weighted | Weighted | Weighted | (Liability) | ||||||||||||||||||||||||||||||||
Period and Type of Contract | MMMBtus | Average) | Range | Average | Range | Average | Range | Average | (In millions) | ||||||||||||||||||||||||||||
January 2005 - March 2005 | |||||||||||||||||||||||||||||||||||||
Price swap contracts | 8,057 | $ | 7.00 | — | — | — | — | — | — | $ | 6.2 | ||||||||||||||||||||||||||
Collar contracts | 23,445 | — | $ | 3.50 - $8.00 | $ | 5.74 | $ | 4.16 - $13.50 | $ | 10.35 | — | — | 7.9 | ||||||||||||||||||||||||
Floor contracts | 5,400 | — | — | — | — | — | $ | 5.47 - $5.50 | $ | 5.49 | 0.9 | ||||||||||||||||||||||||||
April 2005 - June 2005 | |||||||||||||||||||||||||||||||||||||
Price swap contracts | 9,060 | 6.19 | — | — | — | — | — | — | 0.9 | ||||||||||||||||||||||||||||
Collar contracts | 3,495 | — | 3.50 - 5.50 | 5.30 | 4.16 - 8.55 | 7.74 | — | — | — | ||||||||||||||||||||||||||||
Floor contracts | 13,500 | — | — | — | — | — | 5.50 - 5.51 | 5.50 | 4.2 | ||||||||||||||||||||||||||||
July 2005 - September 2005 | |||||||||||||||||||||||||||||||||||||
Price swap contracts | 9,406 | 6.17 | — | — | �� | — | — | — | — | (0.2 | ) | ||||||||||||||||||||||||||
Collar contracts | 3,495 | — | 3.50 - 5.50 | 5.30 | 4.16 - 8.55 | 7.74 | — | — | (0.2 | ) | |||||||||||||||||||||||||||
Floor contracts | 13,500 | — | — | — | — | — | 5.50 - 5.51 | 5.50 | 5.3 | ||||||||||||||||||||||||||||
October 2005 - December 2005 | |||||||||||||||||||||||||||||||||||||
Price swap contracts | 6,425 | 5.93 | — | — | — | — | — | — | (3.4 | ) | |||||||||||||||||||||||||||
Collar contracts | 1,395 | — | 3.50 - 5.50 | 5.01 | 4.16 - 8.55 | 7.15 | — | — | (0.7 | ) | |||||||||||||||||||||||||||
Floor contracts | 4,500 | — | — | — | — | — | 5.50 - 5.51 | 5.50 | 2.1 | ||||||||||||||||||||||||||||
$ | 23.0 | ||||||||||||||||||||||||||||||||||||
NYMEX Contract Price Per MMBtu | Estimated | |||||||||||||||||||||||||||||||||||
Collars | Fair Value | |||||||||||||||||||||||||||||||||||
Swaps | Floors | Ceilings | Floor Contracts | Asset | ||||||||||||||||||||||||||||||||
Volume in | (Weighted | Weighted | Weighted | Weighted | (Liability) | |||||||||||||||||||||||||||||||
Period and Type of Contract | MMMBtus | Average) | Range | Average | Range | Average | Range | Average | (In millions) | |||||||||||||||||||||||||||
January 2006 - March 2006 | ||||||||||||||||||||||||||||||||||||
Price swap contracts | 7,200 | $8.96 | — | — | — | — | — | — | $(17 | ) | ||||||||||||||||||||||||||
Collar contracts | 2,400 | — | $5.80 | $5.80 | $10.00 | $10.00 | — | — | (4 | ) | ||||||||||||||||||||||||||
Floor contracts | 5,100 | — | — | — | — | — | $7.50 - $7.65 | $7.55 | — | |||||||||||||||||||||||||||
April 2006 - June 2006 | ||||||||||||||||||||||||||||||||||||
Floor contracts | 4,800 | — | — | — | — | — | 7.35 | 7.35 | — | |||||||||||||||||||||||||||
July 2006 - September 2006 | ||||||||||||||||||||||||||||||||||||
Floor contracts | 4,800 | — | — | — | — | — | 7.35 | 7.35 | 1 | |||||||||||||||||||||||||||
October 2006 - December 2006 | ||||||||||||||||||||||||||||||||||||
Floor contracts | 1,600 | — | — | — | — | — | 7.35 | 7.35 | — | |||||||||||||||||||||||||||
$(20 | ) | |||||||||||||||||||||||||||||||||||
NYMEX Contract Price Per MMBtu | Estimated | |||||||||||||||||||||||||||||||||||||||||||
Collars | Fair Value | |||||||||||||||||||||||||||||||||||||||||||
Swaps | Additional Put | Floors | Ceilings | Floors | Asset | |||||||||||||||||||||||||||||||||||||||
Volume in | (Weighted | Weighted | Weighted | Weighted | Weighted | (Liability) | ||||||||||||||||||||||||||||||||||||||
Period and Type of Contract | MMBtus | Average) | Range | Average | Range | Average | Range | Average | Range | Average | (In millions) | |||||||||||||||||||||||||||||||||
January 2006 - March 2006 | ||||||||||||||||||||||||||||||||||||||||||||
3-Way collar contracts | 11,850 | — | $4.50 - $8.50 | $6.47 | $6.00 - $10.00 | $7.61 | $10.00 - $14.50 | $12.13 | — | — | $(9 | ) | ||||||||||||||||||||||||||||||||
April 2006 - June 2006 | ||||||||||||||||||||||||||||||||||||||||||||
Price swap contracts | 3,060 | $10.25 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Collar contracts | 2,040 | — | — | — | 9.00 - 9.35 | 9.26 | 13.80 - 20.00 | 15.50 | — | — | — | |||||||||||||||||||||||||||||||||
Floor contracts | 510 | — | — | — | — | — | — | — | $8.29 | $8.29 | — | |||||||||||||||||||||||||||||||||
July 2006 - September 2006 | ||||||||||||||||||||||||||||||||||||||||||||
Price swap contracts | 3,060 | 10.25 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Collar contracts | 2,040 | — | — | — | 9.00 - 9.35 | 9.26 | 13.80 - 20.00 | 15.50 | — | — | 1 | |||||||||||||||||||||||||||||||||
Floor contracts | 510 | — | — | — | — | — | — | — | 8.29 | 8.29 | — | |||||||||||||||||||||||||||||||||
$(8 | ) | |||||||||||||||||||||||||||||||||||||||||||
69
NYMEX Contract Price Per Bbl | |||||||||||||||||||||||||||||
Collars | |||||||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||||||
Floors | Ceilings | Fair Value | |||||||||||||||||||||||||||
Swaps | Asset | ||||||||||||||||||||||||||||
Volume in | (Weighted | Weighted | Weighted | (Liability) | |||||||||||||||||||||||||
Period and Type of Contract | Bbls | Average) | Range | Average | Range | Average | (In millions) | ||||||||||||||||||||||
January 2005 - March 2005 | |||||||||||||||||||||||||||||
Price swap contracts | 717,000 | $ | 32.78 | — | — | — | — | $ | (7.7 | ) | |||||||||||||||||||
Collar contracts | 555,000 | — | $ | 27.00 - $45.00 | $ | 33.99 | $ | 30.65 - $56.80 | $ | 42.87 | (2.6 | ) | |||||||||||||||||
April 2005 - June 2005 | |||||||||||||||||||||||||||||
Price swap contracts | 631,000 | 33.21 | — | — | — | — | (6.1 | ) | |||||||||||||||||||||
Collar contracts | 468,000 | — | 27.00 - 45.00 | 35.37 | 30.65 - 56.80 | 44.95 | (1.4 | ) | |||||||||||||||||||||
July 2005 - September 2005 | |||||||||||||||||||||||||||||
Price swap contracts | 635,000 | 33.25 | — | — | — | — | (5.6 | ) | |||||||||||||||||||||
Collar contracts | 321,000 | — | 35.60 - 45.00 | 39.31 | 48.00 - 55.50 | 50.10 | 0.4 | ||||||||||||||||||||||
October 2005 - December 2005 | |||||||||||||||||||||||||||||
Price swap contracts | 635,000 | 33.25 | — | — | — | — | (5.2 | ) | |||||||||||||||||||||
Collar contracts | 321,000 | — | 35.60 - 45.00 | 39.31 | 48.00 - 55.50 | 50.10 | 0.6 | ||||||||||||||||||||||
January 2006 - December 2006 | |||||||||||||||||||||||||||||
Price swap contracts | 1,534,000 | 31.64 | — | — | — | — | (12.9 | ) | |||||||||||||||||||||
January 2007 - December 2007 | |||||||||||||||||||||||||||||
Price swap contracts | 240,000 | 27.00 | — | — | — | — | (2.8 | ) | |||||||||||||||||||||
$ | (43.3 | ) | |||||||||||||||||||||||||||
69
NYMEX Contract Price Per Bbl | Estimated | |||||||||||||||||||||||||||
Collars | Fair Value | |||||||||||||||||||||||||||
Swaps | Floors | Ceilings | Asset | |||||||||||||||||||||||||
Volume in | (Weighted | Weighted | Weighted | (Liability) | ||||||||||||||||||||||||
Period and Type of Contract | Bbls | Average) | Range | Average | Range | Average | (In millions) | |||||||||||||||||||||
January 2006 - March 2006 | ||||||||||||||||||||||||||||
Price swap contracts | 741 | $ | 46.71 | — | — | — | — | $ | (11 | ) | ||||||||||||||||||
Collar contracts | 150 | — | $ | 50.00 - $55.00 | $ | 52.50 | $ | 73.90 - $83.75 | $ | 78.81 | — | |||||||||||||||||
April 2006 - June 2006 | ||||||||||||||||||||||||||||
Price swap contracts | 747 | 46.77 | — | — | — | — | (12 | ) | ||||||||||||||||||||
Collar contracts | 151 | — | 50.00 - 55.00 | 52.51 | 73.90 - 83.75 | 78.83 | — | |||||||||||||||||||||
July 2006 - September 2006 | ||||||||||||||||||||||||||||
Price swap contracts | 753 | 46.83 | — | — | — | — | (12 | ) | ||||||||||||||||||||
Collar contracts | 151 | — | 50.00 - 55.00 | 52.52 | 73.90 - 83.75 | 78.84 | — | |||||||||||||||||||||
October 2006 - December 2006 | ||||||||||||||||||||||||||||
Price swap contracts | 753 | 46.83 | — | — | — | — | (13 | ) | ||||||||||||||||||||
Collar contracts | 151 | — | 50.00 - 55.00 | 52.52 | 73.90 - 83.75 | 78.84 | — | |||||||||||||||||||||
January 2007 - December 2007 | ||||||||||||||||||||||||||||
Price swap contracts | 605 | 47.66 | — | — | — | — | (9 | ) | ||||||||||||||||||||
Collar contracts | 365 | — | 50.00 - 55.00 | 52.50 | 77.10 - 83.25 | 80.18 | — | |||||||||||||||||||||
$ | (57 | ) | ||||||||||||||||||||||||||
NYMEX Contract Price Per Bbl | |||||||||||||||||||||||||||||||||
Collars | |||||||||||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||||||||||
Additional Put | Floors | Ceilings | Fair Value | ||||||||||||||||||||||||||||||
Asset | |||||||||||||||||||||||||||||||||
Volume in | Weighted | Weighted | Weighted | (Liability) | |||||||||||||||||||||||||||||
Period and Type of Contract | Bbls | Range | Average | Range | Average | Range | Average | (In millions) | |||||||||||||||||||||||||
January 2005 - March 2005 | |||||||||||||||||||||||||||||||||
3-Way collar contracts | 270,000 | $ | 21.00 - $30.00 | $ | 27.00 | $ | 25.00 - $36.00 | $ | 32.00 | $ | 29.70 - $51.25 | $ | 43.32 | $ | (1.4 | ) | |||||||||||||||||
April 2005 - June 2005 | |||||||||||||||||||||||||||||||||
3-Way collar contracts | 182,000 | 30.00 | 30.00 | 35.00 - 36.00 | 35.50 | 49.00 - 51.25 | 50.13 | (0.2 | ) | ||||||||||||||||||||||||
July 2005 - September 2005 | |||||||||||||||||||||||||||||||||
3-Way collar contracts | 184,000 | 30.00 | 30.00 | 35.00 - 36.00 | 35.50 | 49.00 - 51.25 | 50.13 | (0.2 | ) | ||||||||||||||||||||||||
October 2005 - December 2005 | |||||||||||||||||||||||||||||||||
3-Way collar contracts | 184,000 | 30.00 | 30.00 | 35.00 - 36.00 | 35.50 | 49.00 - 51.25 | 50.13 | (0.2 | ) | ||||||||||||||||||||||||
January 2006 - December 2006 | |||||||||||||||||||||||||||||||||
3-Way collar contracts | 1,006,000 | 30.00 | 30.00 | 35.00 - 36.00 | 35.27 | 50.50 - 55.00 | 51.74 | (0.7 | ) | ||||||||||||||||||||||||
January 2007 - December 2007 | |||||||||||||||||||||||||||||||||
3-Way collar contracts | 2,920,000 | 25.00 - 29.00 | 26.50 | 32.00 - 35.00 | 33.00 | 44.70 - 52.80 | 50.19 | (2.1 | ) | ||||||||||||||||||||||||
January 2008 - December 2008 | |||||||||||||||||||||||||||||||||
3-Way collar contracts | 3,294,000 | 25.00 - 29.00 | 26.56 | 32.00 - 35.00 | 33.00 | 49.50 - 52.90 | 50.29 | (1.7 | ) | ||||||||||||||||||||||||
January 2009 - December 2009 | |||||||||||||||||||||||||||||||||
3-Way collar contracts | 3,285,000 | 25.00 - 30.00 | 27.00 | 32.00 - 36.00 | 33.33 | 50.00 - 54.55 | 50.62 | (1.4 | ) | ||||||||||||||||||||||||
January 2010 - December 2010 | |||||||||||||||||||||||||||||||||
3-Way collar contracts | 3,645,000 | 25.00 - 32.00 | 28.60 | 32.00 - 38.00 | 34.90 | 50.00 - 53.50 | 51.52 | (0.6 | ) | ||||||||||||||||||||||||
$ | (8.5 | ) | |||||||||||||||||||||||||||||||
NYMEX Contract Price Per Bbl | Estimated | |||||||||||||||||||||||||||||||
Collars | Fair Value | |||||||||||||||||||||||||||||||
Additional Put | Floors | Ceilings | Asset | |||||||||||||||||||||||||||||
Volume in | Weighted | Weighted | Weighted | (Liability) | ||||||||||||||||||||||||||||
Period and Type of Contract | Bbls | Range | Average | Range | Average | Range | Average | (In millions) | ||||||||||||||||||||||||
January 2006 - March 2006 | ||||||||||||||||||||||||||||||||
3-Way collar contracts | 414 | $ | 30.00 - $50.00 | $ | 38.51 | $ | 35.00 - $60.00 | $ | 45.96 | $ | 50.50 - $80.00 | $ | 63.31 | $ | (2 | ) | ||||||||||||||||
April 2006 - June 2006 | ||||||||||||||||||||||||||||||||
3-Way collar contracts | 417 | 30.00 - 50.00 | 38.50 | 35.00 - 60.00 | 45.95 | 50.50 - 80.00 | 63.27 | (2 | ) | |||||||||||||||||||||||
July 2006 - September 2006 | ||||||||||||||||||||||||||||||||
3-Way collar contracts | 480 | 30.00 - 50.00 | 37.43 | 35.00 - 60.00 | 44.69 | 50.50 - 80.00 | 62.21 | (4 | ) | |||||||||||||||||||||||
October 2006 - December 2006 | ||||||||||||||||||||||||||||||||
3-Way collar contracts | 480 | 30.00 - 50.00 | 37.43 | 35.00 - 60.00 | 44.69 | 50.50 - 80.00 | 62.21 | (4 | ) | |||||||||||||||||||||||
January 2007 - December 2007 | ||||||||||||||||||||||||||||||||
3-Way collar contracts | 3,525 | 25.00 - 50.00 | 30.02 | 32.00 - 60.00 | 37.12 | 44.70 - 82.00 | 55.32 | (45 | ) | |||||||||||||||||||||||
January 2008 - December 2008 | ||||||||||||||||||||||||||||||||
3-Way collar contracts | 3,294 | 25.00 - 29.00 | 26.56 | 32.00 - 35.00 | 33.00 | 49.50 - 52.90 | 50.29 | (48 | ) | |||||||||||||||||||||||
January 2009 - December 2009 | ||||||||||||||||||||||||||||||||
3-Way collar contracts | 3,285 | 25.00 - 30.00 | 27.00 | 32.00 - 36.00 | 33.33 | 50.00 - 54.55 | 50.62 | (44 | ) | |||||||||||||||||||||||
January 2010 - December 2010 | ||||||||||||||||||||||||||||||||
3-Way collar contracts | 3,645 | 25.00 - 32.00 | 28.60 | 32.00 - 38.00 | 34.90 | 50.00 - 53.50 | 51.52 | (44 | ) | |||||||||||||||||||||||
$ | (193 | ) | ||||||||||||||||||||||||||||||
70
7. | Accrued Liabilities: |
December 31, | December 31, | ||||||||
2004 | 2003 | ||||||||
(In millions) | |||||||||
Revenue payable | $ | 108.7 | $ | 59.7 | |||||
Accrued capital costs | 100.4 | 70.5 | |||||||
Accrued lease operating expenses | 25.9 | 20.4 | |||||||
Employee incentive expense | 44.9 | 26.8 | |||||||
Accrued interest on notes | 22.2 | 14.3 | |||||||
Taxes payable | 14.4 | 2.8 | |||||||
Deferred acquisition payments | 17.0 | — | |||||||
Other | 20.0 | 9.5 | |||||||
Total accrued liabilities | $ | 353.5 | $ | 204.0 | |||||
70
December 31, | December 31, | |||||||
2005 | 2004 | |||||||
(In millions) | ||||||||
Revenue payable | $ | 117 | $ | 109 | ||||
Accrued capital costs | 154 | 101 | ||||||
Accrued lease operating expenses | 33 | 26 | ||||||
Employee incentive expense | 60 | 45 | ||||||
Accrued interest on notes | 21 | 22 | ||||||
Taxes payable | 26 | 14 | ||||||
Deferred acquisition payments | 20 | 17 | ||||||
Other | 23 | 20 | ||||||
Total accrued liabilities | $ | 454 | $ | 354 | ||||
8. | Debt: |
December 31, | December 31, | ||||||||||
2004 | 2003 | ||||||||||
(In millions) | |||||||||||
Senior unsecured debt: | |||||||||||
Bank revolving credit facility: | |||||||||||
Prime rate based loans | $ | — | $ | — | |||||||
LIBOR based loans | 120.0 | 90.0 | |||||||||
Total bank revolving credit facility | 120.0 | 90.0 | |||||||||
Money market lines of credit(1) | — | 5.0 | |||||||||
Total credit arrangements | 120.0 | 95.0 | |||||||||
7.45% Senior Notes due 2007 | 124.9 | 124.8 | |||||||||
Fair value of interest rate swaps(2) | (0.6 | ) | 0.2 | ||||||||
75/8% Senior Notes due 2011 | 174.9 | 174.9 | |||||||||
Fair value of interest rate swaps(2) | (0.1 | ) | 0.5 | ||||||||
Total senior unsecured notes | 299.1 | 300.4 | |||||||||
Total senior unsecured debt | 419.1 | 395.4 | |||||||||
83/8% Senior Subordinated Notes due 2012 | 248.3 | 248.1 | |||||||||
65/8% Senior Subordinated Notes due 2014 | 325.0 | — | |||||||||
Total long-term debt | $ | 992.4 | $ | 643.5 | |||||||
December 31, | December 31, | |||||||
2005 | 2004 | |||||||
(In millions) | ||||||||
Senior unsecured debt: | ||||||||
Bank revolving credit facility: | ||||||||
Prime rate based loans | $ | — | $ | — | ||||
LIBOR based loans(1) | — | 120 | ||||||
Total bank revolving credit facility | — | 120 | ||||||
7.45% Senior Notes due 2007 | 125 | 125 | ||||||
Fair value of interest rate swaps(2) | (2 | ) | (1 | ) | ||||
75/8% Senior Notes due 2011 | 175 | 175 | ||||||
Fair value of interest rate swaps(2) | (2 | ) | — | |||||
Total senior unsecured notes | 296 | 299 | ||||||
Total senior unsecured debt | 296 | 419 | ||||||
83/8% Senior Subordinated Notes due 2012 | 249 | 248 | ||||||
65/8% Senior Subordinated Notes due 2014 | 325 | 325 | ||||||
Total long-term debt | $ | 870 | $ | 992 | ||||
(1) | At December 31, | |
(2) | See “— Interest Rate Swaps” below. |
71
• | incur debt secured by certain liens; | |
• | enter into sale/leaseback transactions; and | |
• | enter into merger or consolidation transactions. |
72
• | incur additional debt; | |
• | make restricted payments; | |
• | pay dividends on or redeem our capital stock; | |
• | make certain investments; | |
• | create liens; | |
• | make certain dispositions of assets; | |
• | engage in transactions with affiliates; and | |
• | engage in mergers, consolidations and certain sales of assets. |
73
73
9. | Redemption of Trust Preferred Securities: |
10. | Common Stock Activity: |
74
74
11. | Income Taxes: |
For the Year Ended | |||||||||||||
December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
(In millions) | |||||||||||||
U.S. | $ | 496.0 | $ | 333.2 | $ | 110.0 | |||||||
Foreign | 2.9 | (1.6 | ) | (2.1 | ) | ||||||||
Total | $ | 498.9 | $ | 331.6 | $ | 107.9 | |||||||
For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
(In millions) | ||||||||||||
U.S. | $ | 515 | $ | 496 | $ | 333 | ||||||
Foreign | 28 | 3 | (1 | ) | ||||||||
Total | $ | 543 | $ | 499 | $ | 332 | ||||||
For the Year Ended | ||||||||||||||
December 31, | ||||||||||||||
2004 | 2003 | 2002 | ||||||||||||
(In millions) | ||||||||||||||
Current taxes: | ||||||||||||||
U.S. federal | $ | 52.2 | $ | 21.3 | $ | 36.8 | ||||||||
U.S. state | 0.7 | 0.3 | 0.7 | |||||||||||
Foreign | 8.2 | — | — | |||||||||||
Deferred taxes: | ||||||||||||||
U.S. federal | 118.8 | 95.7 | 1.8 | |||||||||||
U.S. state | 6.7 | 3.7 | 0.4 | |||||||||||
Foreign | 0.2 | (0.3 | ) | (0.5 | ) | |||||||||
Total provision for income taxes | $ | 186.8 | $ | 120.7 | $ | 39.2 | ||||||||
For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
(In millions) | ||||||||||||
Current taxes: | ||||||||||||
U.S. federal | $ | 54 | $ | 53 | $ | 21 | ||||||
U.S. state | 1 | 1 | 1 | |||||||||
Foreign | 15 | 8 | — | |||||||||
Deferred taxes: | ||||||||||||
U.S. federal | 121 | 118 | 95 | |||||||||
U.S. state | 11 | 7 | 4 | |||||||||
Foreign | (7 | ) | — | — | ||||||||
Total provision for income taxes | $ | 195 | $ | 187 | $ | 121 | ||||||
For the Year Ended | |||||||||||||||
December 31, | |||||||||||||||
2004 | 2003 | 2002 | |||||||||||||
(In millions) | |||||||||||||||
Amount computed using the statutory rate | $ | 174.6 | $ | 116.0 | $ | 37.8 | |||||||||
Increase (decrease) in taxes resulting from: | |||||||||||||||
State and local income taxes, net of federal effect | 4.8 | 2.2 | 1.0 | ||||||||||||
Federal statutory rate in excess of foreign rate | (0.3 | ) | — | (0.1 | ) | ||||||||||
Tax credits and other | — | 2.5 | 0.5 | ||||||||||||
Valuation allowance | 7.7 | — | — | ||||||||||||
Total provision for income taxes | $ | 186.8 | $ | 120.7 | $ | 39.2 | |||||||||
For the Year Ended | ||||||||||||
December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
(In millions) | ||||||||||||
Amount computed using the statutory rate | $ | 190 | $ | 175 | $ | 116 | ||||||
Increase (decrease) in taxes resulting from: | ||||||||||||
State and local income taxes, net of federal effect | 8 | 5 | 2 | |||||||||
Federal statutory rate in excess of foreign rate | 1 | (1 | ) | — | ||||||||
Tax credits and other | 1 | — | 3 | |||||||||
Valuation allowance | (5 | ) | 8 | — | ||||||||
Total provision for income taxes | $ | 195 | $ | 187 | $ | 121 | ||||||
75
December 31, 2004 | December 31, 2003 | |||||||||||||||||||||||||
U.S. | Foreign | Total | U.S. | Foreign | Total | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Deferred tax asset: | ||||||||||||||||||||||||||
Net operating loss carryforwards | $ | 128.1 | $ | 10.3 | $ | 138.4 | $ | 82.1 | $ | 0.8 | $ | 82.9 | ||||||||||||||
Commodity derivatives | 1.0 | — | 1.0 | 16.6 | — | 16.6 | ||||||||||||||||||||
Other, net | 24.3 | — | 24.3 | 7.9 | 0.1 | 8.0 | ||||||||||||||||||||
Valuation allowance | — | (7.7 | ) | (7.7 | ) | — | — | — | ||||||||||||||||||
Deferred tax asset | 153.4 | 2.6 | 156.0 | 106.6 | 0.9 | 107.5 | ||||||||||||||||||||
Deferred tax liability: | ||||||||||||||||||||||||||
Oil and gas properties | (706.1 | ) | (0.1 | ) | (706.2 | ) | (337.4 | ) | — | (337.4 | ) | |||||||||||||||
Net deferred tax asset (liability) | (552.7 | ) | 2.5 | (550.2 | ) | (230.8 | ) | 0.9 | (229.9 | ) | ||||||||||||||||
Less net current deferred tax asset (liability) | 1.0 | (0.1 | ) | 0.9 | 12.9 | — | 12.9 | |||||||||||||||||||
Noncurrent deferred tax asset (liability) | $ | (553.7 | ) | $ | 2.6 | $ | (551.1 | ) | $ | (243.7 | ) | $ | 0.9 | $ | (242.8 | ) | ||||||||||
December 31, 2005 | December 31, 2004 | |||||||||||||||||||||||
U.S. | Foreign | Total | U.S. | Foreign | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Deferred tax asset: | ||||||||||||||||||||||||
Net operating loss carryforwards | $ | 112 | $ | 14 | $ | 126 | $ | 128 | $ | 11 | $ | 139 | ||||||||||||
Commodity derivatives | 31 | — | 31 | 1 | — | 1 | ||||||||||||||||||
Other, net | 9 | — | 9 | 24 | — | 24 | ||||||||||||||||||
Valuation allowance | — | (3 | ) | (3 | ) | — | (8 | ) | (8 | ) | ||||||||||||||
Deferred tax asset | 152 | 11 | 163 | 153 | 3 | 156 | ||||||||||||||||||
Deferred tax liability: | ||||||||||||||||||||||||
Oil and gas properties | (826 | ) | (2 | ) | (828 | ) | (706 | ) | — | (706 | ) | |||||||||||||
Net deferred tax asset (liability) | (674 | ) | 9 | (665 | ) | (553 | ) | 3 | (550 | ) | ||||||||||||||
Less net current deferred tax asset (liability) | 46 | — | 46 | 1 | — | 1 | ||||||||||||||||||
Noncurrent deferred tax asset (liability) | $ | (720 | ) | $ | 9 | $ | (711 | ) | $ | (554 | ) | $ | 3 | $ | (551 | ) | ||||||||
12. | Stock-Based Compensation: |
76
76
Number of | Weighted | ||||||||
Shares | Average | ||||||||
Underlying | Exercise | ||||||||
Options | Price | ||||||||
(In thousands) | |||||||||
Outstanding at December 31, 2001 | 3,502 | $ | 25.52 | ||||||
Granted | 1,067 | 34.49 | |||||||
Exercised | (391 | ) | 15.22 | ||||||
Forfeited | (304 | ) | 32.57 | ||||||
Outstanding at December 31, 2002 | 3,874 | 28.48 | |||||||
Granted | 632 | 35.58 | |||||||
Exercised | (779 | ) | 19.28 | ||||||
Forfeited | (416 | ) | 35.39 | ||||||
Outstanding at December 31, 2003 | 3,311 | 31.13 | |||||||
Granted | 1,017 | 52.37 | |||||||
Exercised | (689 | ) | 27.25 | ||||||
Forfeited | (137 | ) | 41.53 | ||||||
Outstanding at December 31, 2004 | 3,502 | $ | 37.65 | ||||||
Exercisable at December 31, 2002 | 1,570 | $ | 21.47 | ||||||
Exercisable at December 31, 2003 | 1,414 | $ | 26.42 | ||||||
Exercisable at December 31, 2004 | 1,280 | $ | 29.32 | ||||||
Number of | Weighted | |||||||
Shares | Average | |||||||
Underlying | Exercise | |||||||
Options | Price | |||||||
Outstanding at December 31, 2002 | 7,747 | $ | 14.24 | |||||
Granted | 1,264 | 17.79 | ||||||
Exercised | (1,557 | ) | 9.64 | |||||
Forfeited | (832 | ) | 17.70 | |||||
Outstanding at December 31, 2003 | 6,622 | 15.57 | ||||||
Granted | 2,034 | 26.19 | ||||||
Exercised | (1,378 | ) | 13.63 | |||||
Forfeited | (273 | ) | 20.77 | |||||
Outstanding at December 31, 2004 | 7,005 | 18.83 | ||||||
Granted | 1,883 | 33.23 | ||||||
Exercised | (1,989 | ) | 15.74 | |||||
Forfeited | (426 | ) | 24.44 | |||||
Outstanding at December 31, 2005 | 6,473 | $ | 23.60 | |||||
Exercisable at December 31, 2003 | 2,828 | $ | 13.21 | |||||
Exercisable at December 31, 2004 | 2,559 | $ | 14.66 | |||||
Exercisable at December 31, 2005 | 1,903 | $ | 17.05 | |||||
2004 | 2003 | 2002 | ||||||||||
Dividend yield | None | None | None | |||||||||
Expected volatility | 40.94% | 40.16% | 34.15% | |||||||||
Risk-free interest rate | 3.25% | 3.48% | 4.21% | |||||||||
Expected option life | 6.5 Years | 6.5 Years | 6.5 Years |
2005 | 2004 | 2003 | ||||||||||
Dividend yield | None | None | None | |||||||||
Expected volatility | 38.13% | 40.94% | 40.16% | |||||||||
Risk-free interest rate | 3.76% | 3.25% | 3.48% | |||||||||
Expected option life | 6.5 Years | 6.5 Years | 6.5 Years |
77
Options Outstanding | Options Exercisable | |||||||||||||||||||
Number of | Weighted | Number of | ||||||||||||||||||
Shares | Average | Weighted | Shares | Weighted | ||||||||||||||||
Range of | Underlying | Remaining | Average | Underlying | Average | |||||||||||||||
Exercise Prices | Options | Contractual Life | Exercise Price | Options | Exercise Price | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||
$10.94 to $14.78 | 16 | 1.1 years | $ | 13.94 | 16 | $ | 13.94 | |||||||||||||
15.04 to 20.94 | 145 | 3.6 years | 16.52 | 145 | 16.52 | |||||||||||||||
21.06 to 25.00 | 248 | 3.1 years | 23.12 | 248 | 23.12 | |||||||||||||||
25.01 to 29.81 | 415 | 5.1 years | 29.32 | 311 | 29.24 | |||||||||||||||
29.82 to 35.00 | 902 | 7.4 years | 33.15 | 255 | 33.07 | |||||||||||||||
35.01 to 45.00 | 820 | 7.1 years | 38.00 | 301 | 38.05 | |||||||||||||||
45.01 to 63.35 | 956 | 9.3 years | 52.61 | 4 | 49.91 | |||||||||||||||
3,502 | 7.1 years | $ | 37.65 | 1,280 | $ | 29.32 |
Options Outstanding | Options Exercisable | |||||||||||||||||||
Number of | Weighted | Number of | ||||||||||||||||||
Shares | Average | Weighted | Shares | Weighted | ||||||||||||||||
Range of | Underlying | Remaining | Average | Underlying | Average | |||||||||||||||
Exercise Prices | Options | Contractual Life | Exercise Price | Options | Exercise Price | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||
$ 7.97 to $10.00 | 50 | 2.5 years | $ | 8.28 | 50 | $ | 8.28 | |||||||||||||
10.01 to 12.50 | 166 | 2.2 years | 11.82 | 166 | 11.82 | |||||||||||||||
12.51 to 15.00 | 511 | 4.2 years | 14.68 | 491 | 14.68 | |||||||||||||||
15.01 to 17.50 | 1,350 | 6.6 years | 16.61 | 517 | 16.60 | |||||||||||||||
17.51 to 22.50 | 1,054 | 6.3 years | 18.99 | 493 | 19.03 | |||||||||||||||
22.51 to 27.50 | 1,022 | 8.2 years | 24.77 | 121 | 24.59 | |||||||||||||||
27.51 to 35.00 | 1,875 | 9.0 years | 31.07 | 65 | 29.52 | |||||||||||||||
35.01 to 41.72 | 445 | 9.4 years | 37.97 | — | — | |||||||||||||||
6,473 | 7.4 years | $ | 23.60 | 1,903 | $ | 17.05 | ||||||||||||||
78
78
Year Ended December 31, | ||||||||||||||
2004 | 2003 | 2002 | ||||||||||||
Restricted shares granted: | ||||||||||||||
Employee omnibus plans | 51,900 | 265,700 | 61,500 | |||||||||||
Non-employee director plan(1) | 6,062 | 6,664 | 6,296 | |||||||||||
Total | 57,962 | 272,364 | 67,796 | |||||||||||
Weighted average fair value per restricted share granted | $ | 55.48 | $ | 33.32 | $ | 34.28 | ||||||||
Unearned compensation (in millions) | $ | 3.2 | $ | 9.1 | $ | 2.3 | ||||||||
Restricted shares cancelled: | ||||||||||||||
Employee omnibus plans | (3,600 | ) | (49,300 | ) | (25,000 | ) | ||||||||
Non-employee director plan | — | — | — | |||||||||||
Total | (3,600 | ) | (49,300 | ) | (25,000 | ) | ||||||||
Weighted average fair value per restricted share cancelled | $ | 36.92 | $ | 32.09 | $ | 35.59 | ||||||||
Unearned compensation (in millions) | $ | (0.1 | ) | $ | (1.6 | ) | $ | (0.9 | ) | |||||
Net unearned compensation (in millions) | $ | 3.1 | $ | 7.5 | $ | 1.4 | ||||||||
Compensation expense (in millions)(2) | $ | 4.1 | $ | 3.0 | $ | 2.8 |
Year Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Restricted shares granted: | ||||||||||||
Employee omnibus plans | 707,600 | 103,800 | 531,400 | |||||||||
Non-employee director plan(1) | 9,284 | 12,124 | 13,328 | |||||||||
Total | 716,884 | 115,924 | 544,728 | |||||||||
Weighted average fair value per restricted share granted | $ | 37.25 | $ | 27.74 | $ | 16.66 | ||||||
Unearned compensation (in millions) | $ | 27 | $ | 3 | $ | 9 | ||||||
Restricted shares cancelled: | ||||||||||||
Employee omnibus plans | (56,000 | ) | (7,200 | ) | (98,600 | ) | ||||||
Non-employee director plan | — | — | — | |||||||||
Total | (56,000 | ) | (7,200 | ) | (98,600 | ) | ||||||
Weighted average fair value per restricted share cancelled | $ | 24.35 | $ | 18.46 | $ | 16.05 | ||||||
Unearned compensation (in millions) | $ | (1 | ) | $ | — | $ | (2 | ) | ||||
Net unearned compensation (in millions) | $ | 26 | $ | 3 | $ | 7 | ||||||
Compensation expense (in millions)(2) | $ | 10 | $ | 4 | $ | 3 |
(1) | Eleven directors received grants in 2005 and 2004 and eight in | |
(2) | As restricted shares vest, the unearned compensation associated with those restricted shares (based on the fair value of our common stock on the date of grant of such restricted shares) is recorded as compensation expense. |
79
79
2004 | 2003 | 2002 | ||||||||||
Dividend yield | None | None | None | |||||||||
Expected volatility | 25.87% | 20.83% | 25.24% | |||||||||
Risk-free interest rate | 1.32% | 1.10% | 1.71% | |||||||||
Expected option life | 6 Months | 6 Months | 6 Months |
2005 | 2004 | 2003 | ||||||||||
Dividend yield | None | None | None | |||||||||
Expected volatility | 32.24% | 25.87% | 20.83% | |||||||||
Risk-free interest rate | 2.98% | 1.32% | 1.10% | |||||||||
Expected option life | 6 Months | 6 Months | 6 Months |
13. | Pension Plan Obligation: |
2004 | 2003 | |||||||||
(In millions) | ||||||||||
Change in benefit obligation: | ||||||||||
Benefit obligation at beginning of year | $ | (28.2 | ) | $ | (26.4 | ) | ||||
Service cost | — | (0.1 | ) | |||||||
Interest cost | (1.7 | ) | (1.6 | ) | ||||||
Assumption loss due to discount rate change | — | (2.1 | ) | |||||||
Benefits paid | 2.0 | 1.1 | ||||||||
Actuarial gain | 0.5 | 0.9 | ||||||||
Benefit obligation at end of year | $ | (27.4 | ) | $ | (28.2 | ) | ||||
Change in plan assets: | ||||||||||
Fair value of plan assets at beginning of year | $ | 20.8 | $ | 19.9 | ||||||
Actual return on plan assets | 3.1 | 1.5 | ||||||||
Employer contributions | 0.2 | 0.5 | ||||||||
Benefits paid | (2.0 | ) | (1.1 | ) | ||||||
Fair value of plan assets at end of year | $ | 22.1 | $ | 20.8 | ||||||
Obligation and funded status: | ||||||||||
Fair value of plan assets | $ | 22.1 | $ | 20.8 | ||||||
Benefit obligation | (27.4 | ) | (28.2 | ) | ||||||
Funded status | (5.3 | ) | (7.4 | ) | ||||||
Unrecognized net (gain) or loss | (2.2 | ) | 1.3 | |||||||
Net amount recognized | $ | (7.5 | ) | $ | (6.1 | ) | ||||
2005 | 2004 | |||||||
(In millions) | ||||||||
Change in benefit obligation: | ||||||||
Benefit obligation at beginning of year | $ | (27 | ) | $ | (28 | ) | ||
Service cost | — | — | ||||||
Interest cost | (2 | ) | (2 | ) | ||||
Assumption loss due to discount rate change | — | — | ||||||
Benefits paid | 1 | 2 | ||||||
Actuarial gain (loss) | (2 | ) | 1 | |||||
Benefit obligation at end of year | $ | (30 | ) | $ | (27 | ) | ||
Change in plan assets: | ||||||||
Fair value of plan assets at beginning of year | $ | 22 | $ | 21 | ||||
Actual return on plan assets | 1 | 3 | ||||||
Employer contributions | 1 | — | ||||||
Benefits paid | (1 | ) | (2 | ) | ||||
Fair value of plan assets at end of year | $ | 23 | $ | 22 | ||||
Obligation and funded status: | ||||||||
Fair value of plan assets | $ | 23 | $ | 22 | ||||
Benefit obligation | (30 | ) | (27 | ) | ||||
Funded status | (7 | ) | (5 | ) | ||||
Unrecognized net (gain) or loss | 1 | (3 | ) | |||||
Net amount recognized | $ | (6 | ) | $ | (8 | ) | ||
80
2004 | 2003 | ||||||||
(In millions) | |||||||||
Amounts recognized on our consolidated balance sheet consist of: | |||||||||
Prepaid benefit cost | $ | — | $ | — | |||||
Accrued benefit cost | (7.5 | ) | (7.7 | ) | |||||
Intangible assets | — | 0.3 | |||||||
Accumulated other comprehensive loss | — | 1.3 | |||||||
Net amount recognized | $ | (7.5 | ) | $ | (6.1 | ) | |||
Components of net periodic benefit cost: | |||||||||
Service cost | $ | — | $ | 0.1 | |||||
Interest cost | 1.7 | 1.6 | |||||||
Expected return on plan assets | (0.2 | ) | (1.4 | ) | |||||
Net periodic benefit cost | $ | 1.5 | $ | 0.3 | |||||
Additional Information: | |||||||||
Accumulated benefit obligation | $ | (27.4 | ) | $ | (28.2 | ) | |||
Decrease (increase) in minimum pension liability included in other comprehensive income | 1.3 | (1.3 | ) |
2004 | 2003 | ||||||||
The weighted average assumptions used to determine the benefit obligation of the pension plan at December 31 were: | |||||||||
Discount rate | 6.00% | 6.00% | |||||||
Rate of compensation increase | 4.00% | 4.00% | |||||||
Cost of living | 3.00% | 3.00% | |||||||
The weighted average assumptions used to determine the net periodic pension benefit cost for the years ended December 31 were: | |||||||||
Discount rate | 6.00% | 6.50% | |||||||
Expected long-term rate of return on plan assets | 8.00% | 7.00% | |||||||
Rate of compensation increase | 4.00% | 4.00% | |||||||
Cost of living | 3.00% | 3.00% |
2005 2004 (In millions) Prepaid benefit cost $ — $ — Accrued benefit cost (7 ) (8 ) Intangible assets — — Accumulated other comprehensive loss 1 — Net amount recognized $ (6 ) $ (8 ) Service cost $ — $ — Interest cost 2 2 Expected return on plan assets (2 ) — Net periodic benefit cost $ — $ 2 Accumulated benefit obligation $ (30 ) $ (27 ) Decrease (increase) in minimum pension liability included in other comprehensive income (1 ) 1 2005 2004 The weighted average assumptions used to determine the benefit obligation of the pension plan at December 31 were: Discount rate 5.75 % 6.00 % Rate of compensation increase N/A N/A Cost of living 3.00 % 3.00 % The weighted average assumptions used to determine the net periodic pension benefit cost for the years ended December 31 were: Discount rate 6.00 % 6.00 % Expected long-term rate of return on plan assets 8.00 % 8.00 % Rate of compensation increase N/A N/A Cost of living 3.00 % 3.00 %
81
Percentage of Plan | ||||||||||||||
Assets at | ||||||||||||||
December 31 | ||||||||||||||
Target Allocation | ||||||||||||||
2005 | 2004 | 2003 | ||||||||||||
Plan Asset Categories: | ||||||||||||||
Equity securities | 40-60 | % | 55.55 | % | 53.27 | % | ||||||||
Debt securities | 40-60 | % | 44.04 | % | 46.73 | % | ||||||||
Other | 0-10 | % | 0.41 | % | — | |||||||||
Total | 100.00 | % | 100.00 | % | 100.00 | % | ||||||||
Percentage of Plan | ||||||||||||
Assets at | ||||||||||||
Target Allocation | December 31 | |||||||||||
2006 | 2005 | 2004 | ||||||||||
Plan Asset Categories: | ||||||||||||
Equity securities | 40-60 | % | 51 | % | 56 | % | ||||||
Debt securities | 40-60 | % | 48 | % | 44 | % | ||||||
Other | 0-10 | % | 1 | % | — | |||||||
Total | 100 | % | 100 | % | ||||||||
2005 | $ | 0.9 | ||
2006 | 0.9 | |||
2007 | 0.9 | |||
2008 | 0.9 | |||
2009 | 1.0 | |||
2010 — 2014 | 7.0 |
2006 | $ | 1 | ||
2007 | 1 | |||
2008 | 1 | |||
2009 | 1 | |||
2010 | 1 | |||
2011 — 2015 | 8 |
14. | Employee Benefit Plans: |
2004 | 2003 | |||||||||
(In millions) | ||||||||||
Change in benefit obligation: | ||||||||||
Benefit obligation at beginning of year | $ | (2.2 | ) | $ | (2.2 | ) | ||||
Service cost | (0.3 | ) | (0.3 | ) | ||||||
Interest cost | (0.1 | ) | (0.1 | ) | ||||||
Participant contributions | — | — | ||||||||
Assumption loss due to discount rate change | — | (0.1 | ) | |||||||
Benefits paid | 0.2 | 0.3 | ||||||||
Actuarial gain or (loss) | (0.3 | ) | 0.2 | |||||||
Benefit obligation at end of year | $ | (2.7 | ) | $ | (2.2 | ) | ||||
82
2004 | 2003 | |||||||||
(In millions) | ||||||||||
Change in plan assets: | ||||||||||
Fair value of plan assets at beginning of year | $ | — | $ | — | ||||||
Employer contributions | 0.2 | 0.2 | ||||||||
Participant contributions | — | — | ||||||||
Benefits paid | (0.2 | ) | (0.2 | ) | ||||||
Fair value of plan assets at end of year | $ | — | $ | — | ||||||
Obligation and funded status: | ||||||||||
Fair value of plan assets | $ | — | $ | — | ||||||
Benefit obligation | (2.7 | ) | (2.2 | ) | ||||||
Funded status | (2.7 | ) | (2.2 | ) | ||||||
Unrecognized net loss | 1.3 | 1.1 | ||||||||
Net amount recognized | $ | (1.4 | ) | $ | (1.1 | ) | ||||
Amounts recognized on our consolidated balance sheet consist of: | ||||||||||
Accrued benefit cost | $ | (1.4 | ) | $ | (1.1 | ) | ||||
Components of net periodic benefit cost: | ||||||||||
Service cost | $ | 0.3 | $ | 0.3 | ||||||
Interest cost | 0.1 | 0.1 | ||||||||
Amortization of net loss | 0.1 | 0.1 | ||||||||
Net periodic benefit cost | $ | 0.5 | $ | 0.5 | ||||||
2004 | 2003 | ||||||||
The weighted average assumptions used to determine the benefit obligations at December 31 were: | |||||||||
Discount rate | 6.00 | % | 6.00 | % | |||||
Health care cost trend rate assumed for next year | 10.00 | % | 9.00 | % | |||||
Ultimate health care cost trend rate | 5.00 | % | 5.00 | % | |||||
Year that the rate reaches the ultimate trend rate | 2010 | 2008 | |||||||
The weighted average assumptions used to determine the net periodic benefit cost for the years ended December 31 were: | |||||||||
Discount rate | 6.00 | % | 6.50 | % | |||||
Health care cost trend rate assumed for next year | 9.00 | % | 10.00 | % | |||||
Ultimate health care cost trend rate | 5.00 | % | 5.00 | % | |||||
Year that the rate reaches the ultimate trend rate | 2008 | 2008 |
83
2004 | 2003 | ||||||||
Assumed health care cost trend rates affect the amounts reported. A one-percentage-point change in assumed health care cost trend rates would have the following effects (in thousands): | |||||||||
1-Percentage Point Increase: | |||||||||
Effect on total of service and interest cost | $ | 60 | $ | 55 | |||||
Effect on postretirement benefit obligation | $ | 288 | $ | 201 | |||||
1-Percentage Point Decrease: | |||||||||
Effect on total of service and interest cost | $ | (52 | ) | $ | (39 | ) | |||
Effect on postretirement benefit obligation | $ | (254 | ) | $ | (178 | ) |
2005 | $ | 0.2 | ||
2006 | 0.2 | |||
2007 | 0.1 | |||
2008 | 0.1 | |||
2009 | 0.1 | |||
2010 — 2014 | 1.6 |
2006 — 2010 | $ | 1 | ||
2011 — 2015 | 2 |
84
82
15. | Commitments and Contingencies: |
Year Ending December 31, | |||||
2005 | $ | 4.9 | |||
2006 | 4.4 | ||||
2007 | 4.4 | ||||
2008 | 3.5 | ||||
2009 | 0.1 | ||||
Total minimum lease payments | $ | 17.3 | |||
Year Ending December 31, | ||||
2006 | $ | 47 | ||
2007 | 50 | |||
2008 | 34 | |||
2009 | 21 | |||
2010 | 5 | |||
Thereafter | 17 | |||
Total minimum lease payments | $ | 174 | ||
85
83
16. | Stockholder Rights Plan: |
86
84
17. |
United | United | Other | ||||||||||||||||||||
States | Kingdom | Malaysia | International | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||
Year Ended December 31, 2004: | ||||||||||||||||||||||
Oil and gas revenues | $ | 1,311.2 | $ | 2.9 | $ | 38.6 | $ | — | $ | 1,352.7 | ||||||||||||
Operating expenses: | ||||||||||||||||||||||
Lease operating | 136.4 | 1.2 | 8.1 | — | 145.7 | |||||||||||||||||
Production and other taxes | 40.0 | — | 2.3 | — | 42.3 | |||||||||||||||||
Transportation | 6.3 | — | — | — | 6.3 | |||||||||||||||||
Depreciation, depletion and amortization | 463.3 | 2.0 | 6.1 | — | 471.4 | |||||||||||||||||
Ceiling test writedown | — | 17.0 | — | — | 17.0 | |||||||||||||||||
Allocated income taxes | 232.8 | — | 8.4 | — | ||||||||||||||||||
Net income (loss) from oil and gas properties | $ | 432.4 | $ | (17.3 | ) | $ | 13.7 | $ | — | |||||||||||||
Impairment of floating production system and pipelines | 35.0 | |||||||||||||||||||||
General and administrative | 84.0 | |||||||||||||||||||||
Total operating expenses | 801.7 | |||||||||||||||||||||
Income from operations | 551.0 | |||||||||||||||||||||
Interest expense, net of interest income, capitalized interest and other | (28.3 | ) | ||||||||||||||||||||
Commodity derivative expense | (23.8 | ) | ||||||||||||||||||||
Income from continuing operations before income taxes | $ | 498.9 | ||||||||||||||||||||
Total long-lived assets | $ | 3,643.1 | $ | 26.5 | $ | 56.7 | $ | 49.0 | $ | 3,775.3 | ||||||||||||
Additions to long-lived assets | $ | 1,743.1 | $ | 31.9 | $ | 63.0 | $ | 7.2 | $ | 1,845.2 | ||||||||||||
United | United | Other | ||||||||||||||||||||||
States | Kingdom | Malaysia | China | International | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Year Ended December 31, 2005: | ||||||||||||||||||||||||
Oil and gas revenues | $ | 1,689 | $ | 1 | $ | 72 | $ | — | $ | — | $ | 1,762 | ||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Lease operating | 190 | — | 15 | — | — | 205 | ||||||||||||||||||
Production and other taxes | 58 | — | 6 | — | — | 64 | ||||||||||||||||||
Depreciation, depletion and amortization | 510 | 1 | 10 | — | — | 521 | ||||||||||||||||||
Ceiling test writedown | — | — | — | — | 10 | 10 | ||||||||||||||||||
Allocated income taxes | 326 | — | 15 | — | — | |||||||||||||||||||
Net income (loss) from oil and gas properties | $ | 605 | $ | — | $ | 26 | $ | — | $ | (10 | ) | |||||||||||||
General and administrative | 104 | |||||||||||||||||||||||
Other | (29 | ) | ||||||||||||||||||||||
Total operating expenses | 875 | |||||||||||||||||||||||
Income from operations | 887 | |||||||||||||||||||||||
Interest expense, net of interest income, capitalized interest and other | (22 | ) | ||||||||||||||||||||||
Commodity derivative expense | (322 | ) | ||||||||||||||||||||||
Income before income taxes | $ | 543 | ||||||||||||||||||||||
Total long-lived assets | $ | 4,226 | $ | 46 | $ | 87 | $ | 45 | $ | 6 | $ | 4,410 | ||||||||||||
Additions to long-lived assets | $ | 1,076 | $ | 35 | $ | 41 | $ | 8 | $ | 3 | $ | 1,163 | ||||||||||||
87
85
United | United | Other | ||||||||||||||||||||
States | Kingdom | Malaysia | International | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||
Year Ended December 31, 2003: | ||||||||||||||||||||||
Oil and gas revenues | $ | 1,016.8 | $ | 0.2 | $ | — | $ | — | $ | 1,017.0 | ||||||||||||
Operating expenses: | ||||||||||||||||||||||
Lease operating | 119.2 | 0.1 | — | — | 119.3 | |||||||||||||||||
Production and other taxes | 31.7 | — | — | — | 31.7 | |||||||||||||||||
Transportation | 6.4 | — | — | — | 6.4 | |||||||||||||||||
Depreciation, depletion and amortization | 394.4 | 0.3 | — | — | 394.7 | |||||||||||||||||
Allocated income taxes | 162.8 | (0.1 | ) | — | — | |||||||||||||||||
Net income (loss) from oil and gas properties | $ | 302.3 | $ | (0.1 | ) | $ | — | $ | — | |||||||||||||
Gas sales obligation settlement and redemption of securities | 20.5 | |||||||||||||||||||||
General and administrative | 61.6 | |||||||||||||||||||||
Total operating expenses | 634.2 | |||||||||||||||||||||
Income from operations | 382.8 | |||||||||||||||||||||
Interest expense and dividends, net of interest income, capitalized interest and other | (45.1 | ) | ||||||||||||||||||||
Commodity derivative expense | (6.1 | ) | ||||||||||||||||||||
Income from continuing operations before income taxes | $ | 331.6 | ||||||||||||||||||||
Total long-lived assets | $ | 2,365.2 | $ | 11.5 | $ | — | $ | 41.8 | $ | 2,418.5 | ||||||||||||
Additions to long-lived assets(1) | $ | 762.0 | $ | 10.2 | $ | — | $ | 6.9 | $ | 779.1 | ||||||||||||
(1) Includes $100.6 million (domestic) for capitalized asset retirement obligations associated with our adoption of SFAS No. 143. |
United United Other States Kingdom Malaysia China International Total (In millions) Oil and gas revenues $ 1,311 $ 3 $ 39 $ — $ — $ 1,353 Operating expenses: Lease operating 143 1 8 — — 152 Production and other taxes 40 — 2 — — 42 Depreciation, depletion and amortization 463 2 7 — — 472 Ceiling test writedown — 17 — — — 17 Allocated income taxes 233 — 8 — — Net income (loss) from oil and gas properties $ 432 $ (17 ) $ 14 $ — $ — General and administrative 84 Other 35 Total operating expenses 802 Income from operations 551 Interest expense, net of interest income, capitalized interest and other (28 ) Commodity derivative expense (24 ) Income before income taxes $ 499 Total long-lived assets $ 3,643 $ 26 $ 57 $ 37 $ 12 $ 3,775 Additions to long-lived assets $ 1,743 $ 32 $ 63 $ 2 $ 5 $ 1,845
8886
United | United | Other | ||||||||||||||||||||
States | Kingdom | Malaysia | International | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||
Year Ended December 31, 2002: | ||||||||||||||||||||||
Oil and gas revenues | $ | 626.8 | $ | — | $ | — | $ | — | $ | 626.8 | ||||||||||||
Operating expenses: | ||||||||||||||||||||||
Lease operating | 90.8 | — | — | — | 90.8 | |||||||||||||||||
Production and other taxes | 13.3 | — | — | — | 13.3 | |||||||||||||||||
Transportation | 5.7 | — | — | — | 5.7 | |||||||||||||||||
Depreciation, depletion and amortization | 295.1 | — | — | — | 295.1 | |||||||||||||||||
Allocated income taxes | 77.7 | — | — | — | ||||||||||||||||||
Net income from oil and gas properties | $ | 144.2 | $ | — | $ | — | $ | — | ||||||||||||||
General and administrative | 54.4 | |||||||||||||||||||||
Total operating expenses | 459.3 | |||||||||||||||||||||
Income from operations | 167.5 | |||||||||||||||||||||
Interest expense and dividends, net of interest income, capitalized interest and other | (30.5 | ) | ||||||||||||||||||||
Commodity derivative expense | (29.1 | ) | ||||||||||||||||||||
Income from continuing operations before income taxes | $ | 107.9 | ||||||||||||||||||||
Total long-lived assets | $ | 1,950.6 | $ | 1.4 | $ | — | $ | 34.9 | $ | 1,986.9 | ||||||||||||
Additions to long-lived assets | $ | 880.3 | $ | 1.4 | $ | — | $ | 6.8 | $ | 888.5 | ||||||||||||
United United Other States Kingdom Malaysia China International Total (In millions) Oil and gas revenues $ 1,017 $ — $ — $ — $ — $ 1,017 Operating expenses: Lease operating 125 — — — — 125 Production and other taxes 32 — — — — 32 Depreciation, depletion and amortization 395 — — — — 395 Allocated income taxes 163 — — — — Net income from oil and gas properties $ 302 $ — $ — $ — $ — General and administrative 62 Other 20 Total operating expenses 634 Income from operations 383 Interest expense and dividends, net of interest income, capitalized interest and other (45 ) Commodity derivative expense (6 ) Income from continuing operations before income taxes $ 332 Total long-lived assets $ 2,365 $ 11 $ — $ 35 $ 7 $ 2,418 $ 762 $ 10 $ — $ 5 $ 2 $ 779
(1) | Includes $100 million for capitalized asset retirement obligations in the United States associated with our adoption of SFAS No. 143. |
18. | Supplemental Cash Flow Information: |
Year Ended December 31, | |||||||||||||
2004 | 2003 | 2002 | |||||||||||
(In millions) | |||||||||||||
Cash payments: | |||||||||||||
Interest and dividend payments, net of interest capitalized of $25.8, $15.9 and $8.8 during 2004, 2003 and 2002, respectively | $ | 22.2 | $ | 41.7 | $ | 35.5 | |||||||
Income tax payments | 16.5 | 40.0 | 21.5 | ||||||||||
Non-cash items excluded from the statement of cash flows: | |||||||||||||
Accrued capital expenditures | $ | (33.4 | ) | $ | (22.9 | ) | $ | (17.1 | ) | ||||
Asset retirement costs | (48.5 | ) | (132.3 | ) | — | ||||||||
Stock issued for acquisitions | — | — | (258.2 | ) | |||||||||
Other | 0.1 | (0.1 | ) | (0.1 | ) |
89
Year Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
(In millions) | ||||||||||||
Cash payments: | ||||||||||||
Interest and dividend payments, net of interest capitalized of $46, $26 and $16 during 2005, 2004 and 2003, respectively | $ | 25 | $ | 22 | $ | 42 | ||||||
Income tax payments | 54 | 17 | 40 | |||||||||
Non-cash items excluded from the statement of cash flows: | ||||||||||||
Accrued capital expenditures | $ | (66 | ) | $ | (33 | ) | $ | (23 | ) | |||
Asset retirement costs | (44 | ) | (48 | ) | (132 | ) |
19. | Related Party Transaction: |
87
90
20. | Quarterly Results of Operations (Unaudited): |
2004 Quarter Ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Oil and gas revenues | $ | 305.4 | $ | 282.7 | $ | 327.7 | $ | 436.9 | ||||||||
Income from operations(1) | 141.2 | 118.5 | 126.5 | 164.8 | ||||||||||||
Income from continuing operations | 77.9 | 67.5 | 76.5 | 90.2 | ||||||||||||
Net income | 77.9 | 67.5 | 76.5 | 90.2 | ||||||||||||
Basic earnings per common share(2): | ||||||||||||||||
Income from continuing operations | $ | 1.39 | $ | 1.20 | $ | 1.29 | $ | 1.46 | ||||||||
Basic earnings per common share | $ | 1.39 | $ | 1.20 | $ | 1.29 | $ | 1.46 | ||||||||
Diluted earnings per common share(2): | ||||||||||||||||
Income from continuing operations | $ | 1.38 | $ | 1.18 | $ | 1.27 | $ | 1.43 | ||||||||
Diluted earnings per common share | $ | 1.38 | $ | 1.18 | $ | 1.27 | $ | 1.43 |
2003 Quarter Ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Oil and gas revenues | $ | 267.9 | $ | 255.5 | $ | 248.7 | $ | 244.9 | ||||||||
Income from operations | 108.0 | 94.4 | 93.8 | 86.6 | ||||||||||||
Income from continuing operations | 59.3 | 53.0 | 58.4 | 40.2 | ||||||||||||
Loss from discontinued operations, net of tax | (0.8 | ) | (7.2 | ) | (9.0 | ) | — | |||||||||
Cumulative effect of change in accounting principle, net of tax | 5.6 | — | — | — | ||||||||||||
Net income | 64.1 | 45.8 | 49.4 | 40.2 | ||||||||||||
Basic earnings per common share(2): | ||||||||||||||||
Income from continuing operations | $ | 1.14 | $ | 0.99 | $ | 1.04 | $ | 0.72 | ||||||||
Loss from discontinued operations | (0.01 | ) | (0.13 | ) | (0.16 | ) | — | |||||||||
Cumulative effect of change in accounting principle, net of tax | 0.11 | — | — | — | ||||||||||||
Basic earnings per common share | $ | 1.24 | $ | 0.86 | $ | 0.88 | $ | 0.72 | ||||||||
Diluted earnings per common share(2): | ||||||||||||||||
Income from continuing operations | $ | 1.08 | $ | 0.95 | $ | 1.04 | $ | 0.71 | ||||||||
Loss from discontinued operations | (0.01 | ) | (0.13 | ) | (0.16 | ) | — | |||||||||
Cumulative effect of change in accounting principle, net of tax | 0.10 | — | — | — | ||||||||||||
Diluted earnings per common share | $ | 1.17 | $ | 0.82 | $ | 0.88 | $ | 0.71 | ||||||||
2005 Quarter Ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Oil and gas revenues | $ | 413 | $ | 446 | $ | 460 | $ | 443 | ||||||||
Income from operations(1) | 197 | 216 | 243 | 231 | ||||||||||||
Net income (loss) | 60 | 104 | — | 184 | ||||||||||||
Basic earnings per common share(2) | $ | 0.48 | $ | 0.83 | $ | — | $ | 1.46 | ||||||||
Diluted earnings per common share(2) | $ | 0.47 | $ | 0.82 | $ | — | $ | 1.43 |
2004 Quarter Ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Oil and gas revenues | $ | 305 | $ | 283 | $ | 328 | $ | 437 | ||||||||
Income from operations(3) | 141 | 119 | 126 | 165 | ||||||||||||
Net income | 78 | 67 | 77 | 90 | ||||||||||||
Basic earnings per common share(2) | $ | 0.70 | $ | 0.60 | $ | 0.65 | $ | 0.73 | ||||||||
Diluted earnings per common share(2) | $ | 0.69 | $ | 0.59 | $ | 0.63 | $ | 0.72 |
(1) | Income from operations for the third quarter of 2005 includes an unrealized loss on discontinued cash flow hedges of $65 million as a result of production deferrals experienced in the Gulf of Mexico related to Hurricanes Katrina and Rita. See Note 6, “Commodity Derivative Instruments and Hedging Activities — Cash Flow Hedges.”Income from operations for the fourth quarter of | |
(2) | The sum of the individual quarterly earnings | |
(3) | Income from operations for the third quarter of 2004 includes a full cost ceiling test writedown of $7 million related to our operations in the U.K. North Sea. Income from operations for the fourth quarter of 2004 includes an additional $10 million ceiling test writedown related to the U.K. North Sea and a charge of $35 million related to the impairment of the floating production system and pipelines. See Note 1, “Organization and Summary of Significant Accounting Policies — Oil and Gas Properties,” and Note 5, “Oil and Gas Assets — Floating Production System and Pipelines.” |
91
88
United | United | Other | ||||||||||||||||||||||||
States | China | Kingdom | Malaysia | Foreign | Total | |||||||||||||||||||||
2004: | ||||||||||||||||||||||||||
Property acquisition:(1) | ||||||||||||||||||||||||||
Unproved | $ | 422.5 | $ | 0.5 | $ | 6.8 | $ | 6.9 | $ | 1.5 | $ | 438.2 | ||||||||||||||
Proved | 559.9 | — | — | 43.7 | — | 603.6 | ||||||||||||||||||||
Exploration | 135.6 | 1.1 | 25.1 | 8.9 | 4.0 | 174.7 | ||||||||||||||||||||
Development(2) | 625.1 | 0.1 | — | 3.5 | — | 628.7 | ||||||||||||||||||||
Total costs incurred(3) | $ | 1,743.1 | $ | 1.7 | $ | 31.9 | $ | 63.0 | $ | 5.5 | $ | 1,845.2 | ||||||||||||||
2003: | ||||||||||||||||||||||||||
Property acquisition: | ||||||||||||||||||||||||||
Unproved | $ | 38.5 | $ | 0.8 | $ | 3.9 | $ | — | $ | 1.1 | $ | 44.3 | ||||||||||||||
Proved | 137.2 | — | 2.9 | — | — | 140.1 | ||||||||||||||||||||
Exploration | 154.9 | 4.2 | 2.3 | — | 0.7 | 162.1 | ||||||||||||||||||||
Development(2) | 330.8 | — | 1.2 | — | — | 332.0 | ||||||||||||||||||||
Total costs incurred | $ | 661.4 | $ | 5.0 | $ | 10.3 | $ | — | $ | 1.8 | $ | 678.5 | ||||||||||||||
2002: | ||||||||||||||||||||||||||
Property acquisition: | ||||||||||||||||||||||||||
Unproved | $ | 112.2 | $ | — | $ | — | $ | — | $ | — | $ | 112.2 | ||||||||||||||
Proved | 511.4 | — | — | — | — | 511.4 | ||||||||||||||||||||
Exploration | 102.7 | 4.9 | 1.4 | — | 1.9 | 110.9 | ||||||||||||||||||||
Development | 154.0 | — | — | — | — | 154.0 | ||||||||||||||||||||
Total costs incurred | $ | 880.3 | $ | 4.9 | $ | 1.4 | $ | — | $ | 1.9 | $ | 888.5 | ||||||||||||||
United | United | Other | ||||||||||||||||||||||
States | Kingdom | Malaysia | China | International | Total | |||||||||||||||||||
2005: | ||||||||||||||||||||||||
Property acquisitions: | ||||||||||||||||||||||||
Unproved | $ | 56 | $ | 3 | $ | 15 | $ | 1 | $ | 1 | $ | 76 | ||||||||||||
Proved | 26 | — | — | — | — | 26 | ||||||||||||||||||
Exploration | 254 | 26 | 17 | 1 | 2 | 300 | ||||||||||||||||||
Development(1) | 740 | 6 | 9 | 6 | — | 761 | ||||||||||||||||||
Total costs incurred(2) | $ | 1,076 | $ | 35 | $ | 41 | $ | 8 | $ | 3 | $ | 1,163 | ||||||||||||
2004: | ||||||||||||||||||||||||
Property acquisitions:(3) | ||||||||||||||||||||||||
Unproved | $ | 422 | $ | 7 | $ | 7 | $ | 1 | $ | 1 | $ | 438 | ||||||||||||
Proved | 560 | — | 44 | — | — | 604 | ||||||||||||||||||
Exploration | 136 | 25 | 9 | 1 | 4 | 175 | ||||||||||||||||||
Development(1) | 625 | — | 3 | — | — | 628 | ||||||||||||||||||
Total costs incurred(4) | $ | 1,743 | $ | 32 | $ | 63 | $ | 2 | $ | 5 | $ | 1,845 | ||||||||||||
2003: | ||||||||||||||||||||||||
Property acquisitions: | ||||||||||||||||||||||||
Unproved | $ | 39 | $ | 4 | $ | — | $ | 1 | $ | 1 | $ | 45 | ||||||||||||
Proved | 137 | 3 | — | — | — | 140 | ||||||||||||||||||
Exploration | 155 | 2 | — | 4 | 1 | 162 | ||||||||||||||||||
Development(1) | 331 | 1 | — | — | — | 332 | ||||||||||||||||||
Total costs incurred | $ | 662 | $ | 10 | $ | — | $ | 5 | $ | 2 | $ | 679 | ||||||||||||
(1) | Includes $44 million, $48 million and $32 million for 2005, 2004 and 2003, respectively, of asset retirement costs recorded in accordance with SFAS No. 143. | |
(2) | Excludes $1 million and $9 million in property sales in the United States and United Kingdom, respectively, and $6 million in foreign currency translation adjustments. In addition, excludes the $10 million ceiling test writedown related to other international investments. | |
(3) | Includes $344 million and $375 million recorded as unproved and proved property acquisition costs, respectively, related to the August 2004 acquisition of Inland Resources. These amounts represent the recorded fair value of the oil and gas assets. The cash consideration paid in the acquisition was approximately $575 million. | |
Excludes |
89
92
United | United | Other | ||||||||||||||||||||||
States | China | Kingdom | Malaysia | Foreign | Total | |||||||||||||||||||
December 31, 2004: | ||||||||||||||||||||||||
Proved properties | $ | 5,106.7 | $ | — | $ | 11.1 | $ | 47.2 | $ | — | $ | 5,165.0 | ||||||||||||
Unproved properties | 660.8 | 36.7 | 17.2 | 15.8 | 12.3 | 742.8 | ||||||||||||||||||
5,767.5 | 36.7 | 28.3 | 63.0 | 12.3 | 5,907.8 | |||||||||||||||||||
Accumulated depreciation, depletion and amortization | (2,124.4 | ) | — | (1.8 | ) | (6.3 | ) | — | (2,132.5 | ) | ||||||||||||||
Net capitalized costs | $ | 3,643.1 | $ | 36.7 | $ | 26.5 | $ | 56.7 | $ | 12.3 | $ | 3,775.3 | ||||||||||||
December 31, 2003: | ||||||||||||||||||||||||
Proved properties | $ | 3,782.3 | $ | — | $ | 4.0 | $ | — | $ | — | $ | 3,786.3 | ||||||||||||
Unproved properties | 242.4 | 35.0 | 7.6 | — | 6.8 | 291.8 | ||||||||||||||||||
4,024.7 | 35.0 | 11.6 | — | 6.8 | 4,078.1 | |||||||||||||||||||
Accumulated depreciation, depletion and amortization | (1,659.5 | ) | — | (0.1 | ) | — | — | (1,659.6 | ) | |||||||||||||||
Net capitalized costs | $ | 2,365.2 | $ | 35.0 | $ | 11.5 | $ | — | $ | 6.8 | $ | 2,418.5 | ||||||||||||
December 31, 2002: | ||||||||||||||||||||||||
Proved properties | $ | 3,052.4 | $ | — | $ | — | $ | — | $ | — | $ | 3,052.4 | ||||||||||||
Unproved properties | 210.3 | 30.0 | 1.4 | — | 4.9 | 246.6 | ||||||||||||||||||
3,262.7 | 30.0 | 1.4 | — | 4.9 | 3,299.0 | |||||||||||||||||||
Accumulated depreciation, depletion and amortization | (1,312.1 | ) | — | — | — | — | (1,312.1 | ) | ||||||||||||||||
Net capitalized costs | $ | 1,950.6 | $ | 30.0 | $ | 1.4 | $ | — | $ | 4.9 | $ | 1,986.9 | ||||||||||||
United | United | Other | ||||||||||||||||||||||
States | Kingdom | Malaysia | China | International | Total | |||||||||||||||||||
December 31, 2005: | ||||||||||||||||||||||||
Proved properties | $ | 6,157 | $ | 30 | $ | 72 | $ | 45 | $ | — | $ | 6,304 | ||||||||||||
Unproved properties | 682 | 18 | 32 | — | 6 | 738 | ||||||||||||||||||
6,839 | 48 | 104 | 45 | 6 | 7,042 | |||||||||||||||||||
Accumulated depreciation, depletion and amortization | (2,613 | ) | (2 | ) | (17 | ) | — | — | (2,632 | ) | ||||||||||||||
Net capitalized costs | $ | 4,226 | $ | 46 | $ | 87 | $ | 45 | $ | 6 | $ | 4,410 | ||||||||||||
December 31, 2004: | ||||||||||||||||||||||||
Proved properties | $ | 5,107 | $ | 11 | $ | 47 | $ | — | $ | — | $ | 5,165 | ||||||||||||
Unproved properties | 661 | 17 | 16 | 37 | 12 | 743 | ||||||||||||||||||
5,768 | 28 | 63 | 37 | 12 | 5,908 | |||||||||||||||||||
Accumulated depreciation, depletion and amortization | (2,125 | ) | (2 | ) | (6 | ) | — | — | (2,133 | ) | ||||||||||||||
Net capitalized costs | $ | 3,643 | $ | 26 | $ | 57 | $ | 37 | $ | 12 | $ | 3,775 | ||||||||||||
December 31, 2003: | ||||||||||||||||||||||||
Proved properties | $ | 3,782 | $ | 4 | $ | — | $ | — | $ | — | $ | 3,786 | ||||||||||||
Unproved properties | 243 | 7 | — | 35 | 7 | 292 | ||||||||||||||||||
4,025 | 11 | — | 35 | 7 | 4,078 | |||||||||||||||||||
Accumulated depreciation, depletion and amortization | (1,660 | ) | — | — | — | — | (1,660 | ) | ||||||||||||||||
Net capitalized costs | $ | 2,365 | $ | 11 | $ | — | $ | 35 | $ | 7 | $ | 2,418 | ||||||||||||
93
90
Oil, Condensate and Natural Gas | |||||||||||||||||||||||||||||||||||||||||||||||||
Liquids (MBbls) | Natural Gas (MMcf) | Total (MMcfe) | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.K. | Malaysia | Total | U.S. | U.K. | Malaysia | Total | U.S. | U.K. | Malaysia | Total | ||||||||||||||||||||||||||||||||||||||
Proved developed and undeveloped reserves as of: | |||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2001 | 30,959 | — | — | 30,959 | 718,312 | — | — | 718,312 | 904,066 | — | — | 904,066 | |||||||||||||||||||||||||||||||||||||
Revisions of previous estimates | 1,367 | — | — | 1,367 | 528 | — | — | 528 | 8,730 | — | — | 8,730 | |||||||||||||||||||||||||||||||||||||
Extensions, discoveries and other additions | 4,218 | — | — | 4,218 | 108,201 | — | — | 108,201 | 133,509 | — | — | 133,509 | |||||||||||||||||||||||||||||||||||||
Purchases of properties | 4,191 | — | — | 4,191 | 301,614 | — | — | 301,614 | 326,760 | — | — | 326,760 | |||||||||||||||||||||||||||||||||||||
Sales of properties | (1,463 | ) | — | — | (1,463 | ) | (6,880 | ) | — | — | (6,880 | ) | (15,658 | ) | — | — | (15,658 | ) | |||||||||||||||||||||||||||||||
Production | (5,235 | ) | — | — | (5,235 | ) | (144,660 | ) | — | — | (144,660 | ) | (176,070 | ) | — | — | (176,070 | ) | |||||||||||||||||||||||||||||||
December 31, 2002 | 34,037 | — | — | 34,037 | 977,115 | — | — | 977,115 | 1,181,337 | — | — | 1,181,337 | |||||||||||||||||||||||||||||||||||||
Revisions of previous estimates | 663 | — | — | 663 | (4,223 | ) | — | — | (4,223 | ) | (239 | ) | — | — | (239 | ) | |||||||||||||||||||||||||||||||||
Extensions, discoveries and other additions | 6,267 | — | — | 6,267 | 200,382 | — | — | 200,382 | 237,970 | — | — | 237,970 | |||||||||||||||||||||||||||||||||||||
Purchases of properties | 2,835 | 26 | — | 2,861 | 101,344 | 2,517 | — | 103,861 | 118,365 | 2,673 | — | 121,038 | |||||||||||||||||||||||||||||||||||||
Sales of properties | — | — | — | — | (2,762 | ) | — | — | (2,762 | ) | (2,762 | ) | — | — | (2,762 | ) | |||||||||||||||||||||||||||||||||
Production | (6,054 | ) | — | — | (6,054 | ) | (184,188 | ) | (45 | ) | — | (184,233 | ) | (220,513 | ) | (45 | ) | — | (220,558 | ) | |||||||||||||||||||||||||||||
December 31, 2003 | 37,748 | 26 | — | 37,774 | 1,087,668 | 2,472 | — | 1,090,140 | 1,314,158 | 2,628 | — | 1,316,786 | |||||||||||||||||||||||||||||||||||||
Revisions of previous estimates | 1,216 | (5 | ) | — | 1,211 | (1,882 | ) | (517 | ) | — | (2,399 | ) | 5,411 | (546 | ) | — | 4,865 | ||||||||||||||||||||||||||||||||
Extensions, discoveries and other additions | 5,250 | — | — | 5,250 | 230,919 | — | — | 230,919 | 262,418 | — | — | 262,418 | |||||||||||||||||||||||||||||||||||||
Purchases of properties | 47,800 | — | 6,588 | 54,388 | 131,359 | — | — | 131,359 | 418,155 | — | 39,529 | 457,684 | |||||||||||||||||||||||||||||||||||||
Sales of properties | (575 | ) | — | — | (575 | ) | (10,824 | ) | — | — | (10,824 | ) | (14,274 | ) | — | — | (14,274 | ) | |||||||||||||||||||||||||||||||
Production | (6,686 | ) | (6 | ) | (873 | ) | (7,565 | ) | (197,588 | ) | (602 | ) | — | (198,190 | ) | (237,700 | ) | (641 | ) | (5,239 | ) | (243,580 | ) | ||||||||||||||||||||||||||
December 31, 2004 | 84,753 | 15 | 5,715 | 90,483 | 1,239,652 | 1,353 | — | 1,241,005 | 1,748,168 | 1,441 | 34,290 | 1,783,899 | |||||||||||||||||||||||||||||||||||||
Proved developed reserves as of: | |||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2001 | 29,151 | — | — | 29,151 | 662,879 | — | — | 662,879 | 837,785 | — | — | 837,785 | |||||||||||||||||||||||||||||||||||||
December 31, 2002 | 32,425 | — | — | 32,425 | 905,062 | — | — | 905,062 | 1,099,612 | — | — | 1,099,612 | |||||||||||||||||||||||||||||||||||||
December 31, 2003 | 30,688 | 26 | — | 30,714 | 955,760 | 2,472 | — | 958,232 | 1,139,893 | 2,628 | — | 1,142,521 | |||||||||||||||||||||||||||||||||||||
December 31, 2004 | 49,704 | 15 | 5,715 | 55,434 | 1,003,927 | 1,353 | — | 1,005,280 | 1,302,149 | 1,441 | 34,290 | 1,337,880 |
Oil, Condensate and Natural Gas | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Liquids (MMBbls) | Natural Gas (Bcf) | Total (Bcfe) | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.K. | Malaysia | China | Total | U.S. | U.K. | Total | U.S. | U.K. | Malaysia | China | Total | ||||||||||||||||||||||||||||||||||||||||
Proved developed and undeveloped reserves as of: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2002 | 34.0 | — | — | — | 34.0 | 977.1 | — | 977.1 | 1,181.3 | — | — | — | 1,181.3 | |||||||||||||||||||||||||||||||||||||||
Revisions of previous estimates | 0.7 | — | — | — | 0.7 | (4.2 | ) | — | (4.2 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Extensions, discoveries and other additions | 6.3 | — | — | — | 6.3 | 200.4 | — | 200.4 | 238.0 | — | — | — | 238.0 | |||||||||||||||||||||||||||||||||||||||
Purchases of properties | 2.9 | — | — | — | 2.9 | 101.3 | 2.6 | 103.9 | 118.3 | 2.6 | — | — | 120.9 | |||||||||||||||||||||||||||||||||||||||
Sales of properties | — | — | — | — | — | (2.8 | ) | — | (2.8 | ) | (2.8 | ) | — | — | — | (2.8 | ) | |||||||||||||||||||||||||||||||||||
Production | (6.1 | ) | — | — | — | (6.1 | ) | (184.2 | ) | — | (184.2 | ) | (220.6 | ) | — | — | — | (220.6 | ) | |||||||||||||||||||||||||||||||||
December 31, 2003 | 37.8 | — | — | — | 37.8 | 1,087.6 | 2.6 | 1,090.2 | 1,314.2 | 2.6 | — | — | 1,316.8 | |||||||||||||||||||||||||||||||||||||||
Revisions of previous estimates | 1.2 | — | — | — | 1.2 | (1.9 | ) | (0.5 | ) | (2.4 | ) | 5.3 | (0.5 | ) | — | — | 4.8 | |||||||||||||||||||||||||||||||||||
Extensions, discoveries and other additions | 5.3 | — | — | — | 5.3 | 230.9 | — | 230.9 | 262.4 | — | — | — | 262.4 | |||||||||||||||||||||||||||||||||||||||
Purchases of properties | 47.8 | — | 6.6 | — | 54.4 | 131.4 | — | 131.4 | 418.2 | — | 39.6 | — | 457.8 | |||||||||||||||||||||||||||||||||||||||
Sales of properties | (0.6 | ) | — | — | — | (0.6 | ) | (10.8 | ) | — | (10.8 | ) | (14.3 | ) | — | — | — | (14.3 | ) | |||||||||||||||||||||||||||||||||
Production | (6.7 | ) | — | (0.9 | ) | — | (7.6 | ) | (197.6 | ) | (0.6 | ) | (198.2 | ) | (237.7 | ) | (0.6 | ) | (5.3 | ) | — | (243.6 | ) | |||||||||||||||||||||||||||||
December 31, 2004 | 84.8 | — | 5.7 | — | 90.5 | 1,239.6 | 1.5 | 1,241.1 | 1,748.1 | 1.5 | 34.3 | — | 1,783.9 | |||||||||||||||||||||||||||||||||||||||
Revisions of previous estimates | 0.8 | — | (0.1 | ) | — | 0.7 | 10.7 | — | 10.7 | 15.6 | — | (0.8 | ) | — | 14.8 | |||||||||||||||||||||||||||||||||||||
Extensions, discoveries and other additions | 9.2 | 0.8 | 4.7 | 5.3 | 20.0 | 249.3 | 64.1 | 313.4 | 304.5 | 69.2 | 28.0 | 31.5 | 433.2 | |||||||||||||||||||||||||||||||||||||||
Purchases of properties | 0.3 | — | — | — | 0.3 | 16.9 | — | 16.9 | 18.9 | — | — | — | 18.9 | |||||||||||||||||||||||||||||||||||||||
Sales of properties | (0.2 | ) | — | — | — | (0.2 | ) | (6.1 | ) | (1.3 | ) | (7.4 | ) | (7.1 | ) | (1.2 | ) | — | — | (8.3 | ) | |||||||||||||||||||||||||||||||
Production | (8.4 | ) | — | (1.3 | ) | — | (9.7 | ) | (183.2 | ) | (0.2 | ) | (183.4 | ) | (233.8 | ) | (0.1 | ) | (7.7 | ) | — | (241.6 | ) | |||||||||||||||||||||||||||||
December 31, 2005 | 86.5 | 0.8 | 9.0 | 5.3 | 101.6 | 1,327.2 | 64.1 | 1,391.3 | 1,846.2 | 69.4 | 53.8 | 31.5 | 2,000.9 | |||||||||||||||||||||||||||||||||||||||
Proved developed reserves as of: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2002 | 32.4 | — | — | — | 32.4 | 905.1 | — | 905.1 | 1,099.6 | — | — | — | 1,099.6 | |||||||||||||||||||||||||||||||||||||||
December 31, 2003 | 30.7 | — | — | — | 30.7 | 955.8 | 2.5 | 958.3 | 1,139.9 | 2.6 | — | — | 1,142.5 | |||||||||||||||||||||||||||||||||||||||
December 31, 2004 | 49.7 | — | 5.7 | — | 55.4 | 1,003.9 | 1.4 | 1,005.3 | 1,302.2 | 1.4 | 34.3 | — | 1,337.9 | |||||||||||||||||||||||||||||||||||||||
December 31, 2005 | 54.6 | — | 4.3 | — | 58.9 | 1,010.2 | — | 1,010.2 | 1,338.0 | — | 25.8 | — | 1,363.8 |
94
91
• | future costs and sales prices will probably differ from those required to be used in these calculations; | |
• | actual rates of production achieved in future years may vary significantly from the rates of production assumed in the calculations; | |
• | a 10% discount rate may not be reasonable as a measure of the relative risk inherent in realizing future net oil and gas revenues; and | |
• | future net revenues may be subject to different rates of income taxation. |
95
92
U.S. | U.K. | Malaysia | Total | ||||||||||||||
(In millions) | |||||||||||||||||
2004: | |||||||||||||||||
Future cash inflows | $ | 10,718.3 | $ | 7.1 | $ | 219.3 | $ | 10,944.7 | |||||||||
Less related future: | |||||||||||||||||
Production costs | (2,067.6 | ) | (3.7 | ) | (127.2 | ) | (2,198.5 | ) | |||||||||
Development and abandonment costs | (885.6 | ) | (1.6 | ) | (10.2 | ) | (897.4 | ) | |||||||||
Future net cash flows before income taxes | 7,765.1 | 1.8 | 81.9 | 7,848.8 | |||||||||||||
Future income tax expense | (2,149.1 | ) | (0.7 | ) | (31.3 | ) | (2,181.1 | ) | |||||||||
Future net cash flows before 10% discount | 5,616.0 | 1.1 | 50.6 | 5,667.7 | |||||||||||||
10% annual discount for estimating timing of cash flows | (2,059.2 | ) | — | (6.5 | ) | (2,065.7 | ) | ||||||||||
Standardized measure of discounted future net cash flows | $ | 3,556.8 | $ | 1.1 | $ | 44.1 | $ | 3,602.0 | |||||||||
2003: | |||||||||||||||||
Future cash inflows | $ | 7,617.6 | $ | 11.9 | $ | — | $ | 7,629.5 | |||||||||
Less related future: | |||||||||||||||||
Production costs | (1,374.3 | ) | (5.6 | ) | — | (1,379.9 | ) | ||||||||||
Development and abandonment costs | (449.6 | ) | (1.5 | ) | — | (451.1 | ) | ||||||||||
Future net cash flows before income taxes | 5,793.7 | 4.8 | — | 5,798.5 | |||||||||||||
Future income tax expense | (1,461.0 | ) | (1.9 | ) | — | (1,462.9 | ) | ||||||||||
Future net cash flows before 10% discount | 4,332.7 | 2.9 | — | 4,335.6 | |||||||||||||
10% annual discount for estimating timing of cash flows | (1,400.0 | ) | (0.2 | ) | — | (1,400.2 | ) | ||||||||||
Standardized measure of discounted future net cash flows | $ | 2,932.7 | $ | 2.7 | $ | — | $ | 2,935.4 | |||||||||
2002: | |||||||||||||||||
Future cash inflows | $ | 5,633.5 | $ | — | $ | — | $ | 5,633.5 | |||||||||
Less related future: | |||||||||||||||||
Production costs | (1,066.3 | ) | — | — | (1,066.3 | ) | |||||||||||
Development and abandonment costs | (299.6 | ) | — | — | (299.6 | ) | |||||||||||
Future net cash flows before income taxes | 4,267.6 | — | — | 4,267.6 | |||||||||||||
Future income tax expense | (1,042.3 | ) | — | — | (1,042.3 | ) | |||||||||||
Future net cash flows before 10% discount | 3,225.3 | — | — | 3,225.3 | |||||||||||||
10% annual discount for estimating timing of cash flows | (978.3 | ) | — | — | (978.3 | ) | |||||||||||
Standardized measure of discounted future net cash flows | $ | 2,247.0 | $ | — | $ | — | $ | 2,247.0 | |||||||||
U.S. | U.K. | Malaysia | China | Total | ||||||||||||||||
(In millions) | ||||||||||||||||||||
2005: | ||||||||||||||||||||
Future cash inflows | $ | 15,458 | $ | 658 | $ | 568 | $ | 268 | $ | 16,952 | ||||||||||
Less related future: | ||||||||||||||||||||
Production costs | (2,688 | ) | (65 | ) | (334 | ) | (55 | ) | (3,142 | ) | ||||||||||
Development and abandonment costs | (1,192 | ) | (146 | ) | (47 | ) | (27 | ) | (1,412 | ) | ||||||||||
Future net cash flows before income taxes | 11,578 | 447 | 187 | 186 | 12,398 | |||||||||||||||
Future income tax expense | (3,585 | ) | (232 | ) | (88 | ) | (54 | ) | (3,959 | ) | ||||||||||
Future net cash flows before 10% discount | 7,993 | 215 | 99 | 132 | 8,439 | |||||||||||||||
10% annual discount for estimating timing of cash flows | (3,259 | ) | (57 | ) | (19 | ) | (51 | ) | (3,386 | ) | ||||||||||
Standardized measure of discounted future net cash flows | $ | 4,734 | $ | 158 | $ | 80 | $ | 81 | $ | 5,053 | ||||||||||
2004: | ||||||||||||||||||||
Future cash inflows | $ | 10,718 | $ | 7 | $ | 219 | $ | — | $ | 10,944 | ||||||||||
Less related future: | ||||||||||||||||||||
Production costs | (2,067 | ) | (4 | ) | (127 | ) | — | (2,198 | ) | |||||||||||
Development and abandonment costs | (886 | ) | (1 | ) | (10 | ) | — | (897 | ) | |||||||||||
Future net cash flows before income taxes | 7,765 | 2 | 82 | — | 7,849 | |||||||||||||||
Future income tax expense | (2,149 | ) | (1 | ) | (31 | ) | — | (2,181 | ) | |||||||||||
Future net cash flows before 10% discount | 5,616 | 1 | 51 | — | 5,668 | |||||||||||||||
10% annual discount for estimating timing of cash flows | (2,059 | ) | — | (7 | ) | — | (2,066 | ) | ||||||||||||
Standardized measure of discounted future net cash flows | $ | 3,557 | $ | 1 | $ | 44 | $ | — | $ | 3,602 | ||||||||||
2003: | ||||||||||||||||||||
Future cash inflows | $ | 7,617 | $ | 12 | $ | — | $ | — | $ | 7,629 | ||||||||||
Less related future: | ||||||||||||||||||||
Production costs | (1,374 | ) | (6 | ) | — | — | (1,380 | ) | ||||||||||||
Development and abandonment costs | (450 | ) | (1 | ) | — | — | (451 | ) | ||||||||||||
Future net cash flows before income taxes | 5,793 | 5 | — | — | 5,798 | |||||||||||||||
Future income tax expense | (1,461 | ) | (2 | ) | — | — | (1,463 | ) | ||||||||||||
Future net cash flows before 10% discount | 4,332 | 3 | — | — | 4,335 | |||||||||||||||
10% annual discount for estimating timing of cash flows | (1,400 | ) | — | — | — | (1,400 | ) | |||||||||||||
Standardized measure of discounted future net cash flows | $ | 2,932 | $ | 3 | $ | — | $ | — | $ | 2,935 | ||||||||||
96
93
U.S. | U.K. | Malaysia | Total | ||||||||||||||
(In millions) | |||||||||||||||||
2004: | |||||||||||||||||
Beginning of the period | $ | 2,932.7 | $ | 2.7 | $ | — | $ | 2,935.4 | |||||||||
Revisions of previous estimates: | |||||||||||||||||
Changes in prices and costs | 157.1 | — | — | 157.1 | |||||||||||||
Changes in quantities | (3.8 | ) | — | — | (3.8 | ) | |||||||||||
Development costs incurred during the period | 135.0 | — | — | 135.0 | |||||||||||||
Additions to proved reserves resulting from extensions, discoveries and improved recovery, less related costs | 733.6 | — | — | 733.6 | |||||||||||||
Purchases and sales of reserves in place, net | 855.0 | — | 81.2 | 936.2 | |||||||||||||
Accretion of discount | 293.3 | 0.3 | — | 293.6 | |||||||||||||
Sales of oil and gas, net of production costs | (1,130.4 | ) | (1.5 | ) | (10.8 | ) | (1,142.7 | ) | |||||||||
Net change in income taxes | (343.7 | ) | 0.3 | (26.3 | ) | (369.7 | ) | ||||||||||
Production timing and other | (72.0 | ) | (0.7 | ) | — | (72.7 | ) | ||||||||||
Net increase | 624.1 | (1.6 | ) | 44.1 | 666.6 | ||||||||||||
End of the period | $ | 3,556.8 | $ | 1.1 | $ | 44.1 | $ | 3,602.0 | |||||||||
2003: | |||||||||||||||||
Beginning of the period | $ | 2,247.0 | $ | — | $ | — | $ | 2,247.0 | |||||||||
Revisions of previous estimates: | |||||||||||||||||
Changes in prices and costs | 575.8 | — | — | 575.8 | |||||||||||||
Changes in quantities | (0.1 | ) | — | — | (0.1 | ) | |||||||||||
Development costs incurred during the period | 63.4 | — | — | 63.4 | |||||||||||||
Additions to proved reserves resulting from extensions, discoveries and improved recovery, less related costs | 710.6 | — | — | 710.6 | |||||||||||||
Purchases and sales of reserves in place, net | 295.8 | 3.8 | — | 299.6 | |||||||||||||
Accretion of discount | 224.7 | — | — | 224.7 | |||||||||||||
Sales of oil and gas, net of production costs | (852.4 | ) | (0.1 | ) | — | (852.5 | ) | ||||||||||
Net change in income taxes | (246.3 | ) | (1.0 | ) | — | (247.3 | ) | ||||||||||
Production timing and other | (85.8 | ) | — | — | (85.8 | ) | |||||||||||
Net increase | 685.7 | 2.7 | — | 688.4 | |||||||||||||
End of the period | $ | 2,932.7 | $ | 2.7 | $ | — | $ | 2,935.4 | |||||||||
U.S. | U.K. | Malaysia | China | Total | ||||||||||||||||
(In millions) | ||||||||||||||||||||
2005: | ||||||||||||||||||||
Beginning of the period | $ | 3,557 | $ | 1 | $ | 44 | $ | — | $ | 3,602 | ||||||||||
Revisions of previous estimates: | ||||||||||||||||||||
Changes in prices and costs | 1,729 | — | 25 | — | 1,754 | |||||||||||||||
Changes in quantities | (186 | ) | — | (1 | ) | — | (187 | ) | ||||||||||||
Changes in future development costs | (91 | ) | — | �� | — | — | (91 | ) | ||||||||||||
Development costs incurred during the period | 180 | — | (2 | ) | — | 178 | ||||||||||||||
Additions to proved reserves resulting from extensions, discoveries and improved recovery, less related costs | 1,103 | 324 | 81 | 111 | 1,619 | |||||||||||||||
Purchases and sales of reserves in place, net | 18 | (1 | ) | — | — | 17 | ||||||||||||||
Accretion of discount | 356 | — | 5 | — | 361 | |||||||||||||||
Sales of oil and gas, net of production costs | (1,160 | ) | — | (25 | ) | — | (1,185 | ) | ||||||||||||
Net change in income taxes | (738 | ) | (166 | ) | (49 | ) | (30 | ) | (983 | ) | ||||||||||
Production timing and other | (34 | ) | — | 2 | — | (32 | ) | |||||||||||||
Net increase | 1,177 | 157 | 36 | 81 | 1,451 | |||||||||||||||
End of the period | $ | 4,734 | $ | 158 | $ | 80 | $ | 81 | $ | 5,053 | ||||||||||
2004: | ||||||||||||||||||||
Beginning of the period | $ | 2,932 | $ | 3 | $ | — | $ | — | $ | 2,935 | ||||||||||
Revisions of previous estimates: | ||||||||||||||||||||
Changes in prices and costs | 157 | — | — | — | 157 | |||||||||||||||
Changes in quantities | (4 | ) | — | — | — | (4 | ) | |||||||||||||
Development costs incurred during the period | 135 | — | — | — | 135 | |||||||||||||||
Additions to proved reserves resulting from extensions, discoveries and improved recovery, less related costs | 734 | — | — | — | 734 | |||||||||||||||
Purchases and sales of reserves in place, net | 855 | — | 81 | — | 936 | |||||||||||||||
Accretion of discount | 293 | — | — | — | 293 | |||||||||||||||
Sales of oil and gas, net of production costs | (1,130 | ) | (1 | ) | (11 | ) | — | (1,142 | ) | |||||||||||
Net change in income taxes | (343 | ) | — | (26 | ) | — | (369 | ) | ||||||||||||
Production timing and other | (72 | ) | (1 | ) | — | — | (73 | ) | ||||||||||||
Net increase (decrease) | 625 | (2 | ) | 44 | — | 667 | ||||||||||||||
End of the period | $ | 3,557 | $ | 1 | $ | 44 | $ | — | $ | 3,602 | ||||||||||
97
94
U.S. | U.K. | Malaysia | Total | ||||||||||||||
(In millions) | |||||||||||||||||
2002: | |||||||||||||||||
Beginning of the period | $ | 958.9 | $ | — | $ | — | $ | 958.9 | |||||||||
Revisions of previous estimates: | |||||||||||||||||
Changes in prices and costs | 1,046.9 | — | — | 1,046.9 | |||||||||||||
Changes in quantities | 12.4 | — | — | 12.4 | |||||||||||||
Development costs incurred during the period | 31.9 | — | — | 31.9 | |||||||||||||
Additions to proved reserves resulting from extensions, discoveries and improved recovery, less related costs | 420.8 | — | — | 420.8 | |||||||||||||
Purchases and sales of reserves in place, net | 663.6 | — | — | 663.6 | |||||||||||||
Accretion of discount | 95.9 | — | — | 95.9 | |||||||||||||
Sales of oil and gas, net of production costs | (347.8 | ) | — | — | (347.8 | ) | |||||||||||
Net change in income taxes | (769.4 | ) | — | — | (769.4 | ) | |||||||||||
Production timing and other | 133.8 | — | — | 133.8 | |||||||||||||
Net increase | 1,288.1 | — | — | 1,288.1 | |||||||||||||
End of the period | $ | 2,247.0 | $ | — | $ | — | $ | 2,247.0 | |||||||||
U.S. U.K. Malaysia China Total (In millions) �� Beginning of the period $ 2,247 $ — $ — $ — $ 2,247 Revisions of previous estimates: Changes in prices and costs 576 — — — 576 Changes in quantities — — — — — Development costs incurred during the period 63 — — — 63 Additions to proved reserves resulting from extensions, discoveries and improved recovery, less related costs 710 — — — 710 Purchases and sales of reserves in place, net 296 4 — — 300 Accretion of discount 225 — — — 225 Sales of oil and gas, net of production costs (853 ) — — — (853 ) Net change in income taxes (246 ) (1 ) — — (247 ) Production timing and other (86 ) — — — (86 ) Net increase 685 3 — — 688 End of the period $ 2,932 $ 3 $ — $ — $ 2,935
9895
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
Item | Other Information |
96
Item 10. | Directors and Executive Officers of the Registrant |
99
97
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13. | Certain Relationships and Related Transactions |
Item 14. | Principal |
98
100
Item 15. | Exhibits and Financial Statement Schedules |
Financial statement schedules listed under SEC rules but not included in this report are omitted because they are not applicable or the required information is provided | |
Exhibit | ||||||
Number | Title | |||||
3 | .1 | — | Second Restated Certificate of Incorporation of Newfield (incorporated by reference to Exhibit 3.1 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 1999 (FileNo. 1-12534)) | |||
3 | .1.1 | — | Certificate of Amendment to Second Restated Certificate of Incorporation of Newfield dated May 15, 1997 (incorporated by reference to Exhibit 3.1.1 to Newfield’s Registration Statement onForm S-3 (RegistrationNo. 333-32582)) | |||
3 | .1.2 | — | Certificate of Amendment to Second Restated Certificate of Incorporation of Newfield dated May 12, 2004 (incorporated by reference to Exhibit 4.2.3 to Newfield’s Registration Statement onForm S-8 (RegistrationNo. 333-116191)) | |||
3 | .1.3 | — | Certificate of Designation of Series A Junior Participating Preferred Stock, par value $0.01 per share, setting forth the terms of the Series A Junior Participating Preferred Stock, par value $0.01 per share (incorporated by reference to Exhibit 3.5 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 1998 (FileNo. 1-12534)) | |||
*3 | .2 | — | Restated Bylaws of Newfield (as amended by Amendment No. 1 thereto adopted January 31, 2000 and Amendment No. 2 thereto adopted July 28, 2005) | |||
4 | .1 | — | Rights Agreement, dated as of February 12, 1999, between Newfield and ChaseMellon Shareholder Services L.L.C., as Rights Agent, specifying the terms of the Rights to Purchase Series A Junior Participating Preferred Stock, par value $0.01 per share, of Newfield (incorporated by reference to Exhibit 1 to Newfield’s Registration Statement onForm 8-A filed with the SEC on February 18, 1999 (FileNo. 1-12534)) | |||
4 | .2 | — | Indenture dated as of October 15, 1997 among Newfield, as issuer, and Wachovia Bank, National Association (formerly First Union National Bank), as trustee (incorporated by reference to Exhibit 4.3 to Newfield’s Registration Statement onForm S-4 (RegistrationNo. 333-39563)) | |||
4 | .3 | — | Senior Indenture dated as of February 28, 2001 between Newfield and Wachovia Bank, National Association (formerly First Union National Bank), as Trustee (incorporated by reference to Exhibit 4.1 to Newfield’s Current Report onForm 8-K filed with the SEC on February 28, 2001 (FileNo. 1-12534)) | |||
4 | .4 | — | Subordinated Indenture dated as of December 10, 2001 between Newfield and Wachovia Bank, National Association (formerly First Union National Bank), as Trustee (incorporated by reference to Exhibit 4.5 of Newfield’s Registration Statement onForm S-3 (RegistrationNo. 333-71348)) | |||
4 | .4.1 | — | First Supplemental Indenture, dated as of August 13, 2002, to Subordinated Indenture dated as of December 10, 2001 between Newfield and Wachovia Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.2 of Newfield’s Current Report onForm 8-K filed with the SEC on August 13, 2002 (FileNo. 1-12534)) | |||
4 | .4.2 | — | Second Supplemental Indenture, dated as of August 18, 2004, to Subordinated Indenture dated as of December 10, 2001 between Newfield and Wachovia Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.6.3 to Newfield’s Registration Statement onForm S-4 (RegistrationNo. 333-122157)) |
99
Exhibit | ||||||
Number | Title | |||||
3 | .1 | — | Second Restated Certificate of Incorporation of Newfield (incorporated by reference to Exhibit 3.1 to Newfield’s Annual Report on Form 10-K for the year ended December 31, 1999 (File No. 1-12534)) | |||
3 | .1.1 | — | Certificate of Amendment to Second Restated Certificate of Incorporation of Newfield dated May 15, 1997 (incorporated by reference to Exhibit 3.1.1 to Newfield’s Registration Statement on Form S-3 (Registration No. 333-32582)) |
101
Exhibit | ||||||
Number | Title | |||||
3 | .1.2 | — | Certificate of Amendment to Second Restated Certificate of Incorporation of Newfield dated May 12, 2004 (incorporated by reference to Exhibit 4.2.3 to Newfield’s Registration Statement on Form S-8 (Registration No. 333-116191)) | |||
3 | .1.3 | — | Certificate of Designation of Series A Junior Participating Preferred Stock, par value $0.01 per share, setting forth the terms of the Series A Junior Participating Preferred Stock, par value $0.01 per share (incorporated by reference to Exhibit 3.5 to Newfield’s Annual Report on Form 10-K for the year ended December 31, 1998 (File No. 1-12534)) | |||
3 | .2 | — | Restated Bylaws of Newfield as amended by Amendment No. 1 thereto adopted January 31, 2000 (incorporated by reference to Exhibit 3.3 to Newfield’s Annual Report on Form 10-K for the year ended December 31, 1999 (File No. 1-12534)) | |||
4 | .1 | — | Rights Agreement, dated as of February 12, 1999, between Newfield and ChaseMellon Shareholder Services L.L.C., as Rights Agent, specifying the terms of the Rights to Purchase Series A Junior Participating Preferred Stock, par value $0.01 per share, of Newfield (incorporated by reference to Exhibit 1 to Newfield’s Registration Statement on Form 8-A filed with the SEC on February 18, 1999 (File No. 1-12534)) | |||
4 | .2 | — | Indenture dated as of October 15, 1997 among Newfield, as issuer, and Wachovia Bank, National Association (formerly First Union National Bank), as trustee (incorporated by reference to Exhibit 4.3 to Newfield’s Registration Statement on Form S-4 (Registration No. 333-39563)) | |||
4 | .3 | — | Senior Indenture dated as of February 28, 2001 between Newfield and Wachovia Bank, National Association (formerly First Union National Bank), as Trustee (incorporated by reference to Exhibit 4.1 to Newfield’s Current Report on Form 8-K filed with the SEC on February 28, 2001 (File No. 1-12534)) | |||
4 | .4 | — | Subordinated Indenture dated as of December 10, 2001 between Newfield and Wachovia Bank, National Association (formerly First Union National Bank), as Trustee (incorporated by reference to Exhibit 4.5 of Newfield’s Registration Statement on Form S-3 (Registration No. 333-71348) | |||
4 | .4.1 | — | First Supplemental Indenture, dated as of August 13, 2002, to Subordinated Indenture dated as of December 10, 2001 between Newfield and Wachovia Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.2 of Newfield’s Current Report on Form 8-K filed with the SEC on August 13, 2002 (File No. 1-12534)) | |||
4 | .4.2 | — | Second Supplemental Indenture, dated as of August 18, 2004, to Subordinated Indenture dated as of December 10, 2001 between Newfield and Wachovia Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.6.3 to Newfield’s Registration Statement on Form S-4 (Registration No. 333-122157)) | |||
4 | .4.2.1 | — | Registration Rights Agreement, dated August 18, 2004, among Newfield, Morgan Stanley & Co. Incorporated and the other initial purchasers named therein (incorporated by reference to Exhibit 4.7 to Newfield’s Registration Statement on Form S-4 (Registration No. 333-122157)) | |||
†10 | .1 | — | Newfield Exploration Company 1995 Omnibus Stock Plan (incorporated by reference to Exhibit 4.1 to Newfield’s Registration Statement on Form S-8 (Registration No. 33-92182)) | |||
†10 | .1.1 | — | First Amendment to Newfield Exploration Company 1995 Omnibus Stock Plan (incorporated by reference to Exhibit 10.1 to Newfield’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2003 (File No. 1-12534)) | |||
†10 | .2 | — | Newfield Exploration Company 1998 Omnibus Stock Plan (incorporated by reference to Exhibit 4.1.1 to Newfield’s Registration Statement on Form S-8 (Registration No. 333-59383)) | |||
†10 | .2.1 | — | Amendment of 1998 Omnibus Stock Plan, dated May 7, 1998 (incorporated by reference to Exhibit 4.1.2 to Newfield’s Registration Statement on Form S-8 (Registration No. 333-59383)) | |||
†10 | .2.2 | — | Second Amendment to Newfield Exploration Company 1998 Omnibus Stock Plan (as amended on May 7, 1998) (incorporated by reference to Exhibit 10.2 to Newfield’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2003 (File No. 1-12534)) | |||
†10 | .3 | — | Newfield Exploration Company 2000 Omnibus Stock Plan (as amended and restated effective February 14, 2002) (incorporated by reference to Exhibit 10.7.2 to Newfield’s Annual Report on Form 10-K for the year ended December 31, 2001 (File No. 1-12534)) |
102
Exhibit | ||||||
Number | Title | |||||
†10 | .3.1 | — | First Amendment to Newfield Exploration Company 2000 Omnibus Plan (as amended and restated effective February 14, 2002) (incorporated by reference to Exhibit 10.3 to Newfield’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2003 (File No. 1-12534)) | |||
*†10 | .3.2 | — | Form of TSR 2003 Restricted Stock Agreement between Newfield and each of David A. Trice, David F. Schaible, Elliott Pew, Terry W. Rathert, Lee K. Boothby, George T. Dunn, Gary D. Packer and William D. Schneider dated as of February 12, 2003 | |||
†10 | .4 | — | Newfield Exploration Company 2004 Omnibus Stock Plan (incorporated by reference to Exhibit 10.2 to Newfield’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2004 (File No. 1-12534)) | |||
†10 | .4.1 | — | Form of TSR 2005 Restricted Stock Agreement between Newfield and each of David A. Trice, David F. Schaible, Elliott Pew, Terry W. Rathert, Lee K. Boothby, George T. Dunn, Gary D. Packer, William D. Schneider, Brian L. Rickmers and Susan G. Riggs dated as of February 8, 2005 (incorporated by reference to Exhibit 10.1 to Newfield’s Current Report on Form 8-K filed with the SEC on February 11, 2005 (File No. 1-12534)) | |||
†10 | .5 | — | Newfield Exploration Company 2000 Non-Employee Director Restricted Stock Plan (incorporated by reference to Exhibit 10.18 to Newfield’s Annual Report on Form 10-K for the year ended December 31, 1999 (File No. 1-12534)) | |||
†10 | .6 | — | Newfield Employee 1993 Incentive Compensation Plan (incorporated by reference to Exhibit 10.5 to Newfield’s Registration Statement on Form S-1 (Registration No. 33-69540)) | |||
†10 | .6.1 | — | Amendment to Newfield Employee 1993 Incentive Compensation Plan (effective as of February 14, 2002) (incorporated by reference to Exhibit 10.9.2 to Newfield’s Annual Report on Form 10-K for the year ended December 31, 2001 (File No. 1-12534)) | |||
*†10 | .7 | — | Amended and Restated Newfield Exploration Company 2003 Incentive Compensation Plan | |||
†10 | .8 | — | Newfield Exploration Company Deferred Compensation Plan (incorporated by reference to Exhibit 10.11 to Newfield’s Registration Statement on Form S-3 (Registration No. 333-32587)) | |||
*†10 | .9 | — | Newfield Exploration Company Change of Control Severance Plan | |||
*†10 | .10 | — | Form of Change of Control Severance Agreement between Newfield and each of David A. Trice, David F. Schaible, Elliott Pew and Terry W. Rathert dated effective as of February 17, 2005 | |||
*†10 | .11 | — | Form of Change of Control Severance Agreement between Newfield and each of Lee K. Boothby, George T. Dunn, Gary D. Packer and William D. Schneider dated effective as of February 17, 2005 | |||
†10 | .12 | — | Employment Agreement between Newfield and Joe B. Foster dated January 31, 2000 (incorporated by reference to Exhibit 10 to Newfield’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2000 (File No. 1-12534)) | |||
†10 | .13 | — | Resolution of Members Establishing the Preferences, Limitations and Relative Rights of Series “A” Preferred Shares of Huffco China, LDC dated May 14, 1997 (incorporated by reference to Exhibit 10.15 to Newfield’s Registration Statement on Form S-3 (Registration No. 333-32587)) | |||
10 | .14 | — | Credit Agreement, dated as of March 16, 2004, among Newfield, the Lenders party thereto and JPMorgan Chase Bank, as Administrative Agent and as Issuing Bank(incorporated by reference to Exhibit 10.1 to Newfield’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2004 (File No. 1-12534)) | |||
*21 | .1 | — | List of Significant Subsidiaries | |||
*23 | .1 | — | Consent of PricewaterhouseCoopers LLP | |||
*31 | .1 | — | Certification of Chief Executive Officer of Newfield Exploration Company pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||
*31 | .2 | — | Certification of Chief Financial Officer of Newfield Exploration Company pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
103
Exhibit | ||||||
Number | Title | |||||
†10 | .1 | — | Newfield Exploration Company 1995 Omnibus Stock Plan (incorporated by reference to Exhibit 4.1 to Newfield’s Registration Statement onForm S-8 (RegistrationNo. 33-92182)) | |||
†10 | .1.1 | — | First Amendment to Newfield Exploration Company 1995 Omnibus Stock Plan (incorporated by reference to Exhibit 10.1 to Newfield’s Quarterly Report onForm 10-Q for the quarterly period ended June 30, 2003 (FileNo. 1-12534)) | |||
†10 | .1.2 | — | Second Amendment to Newfield Exploration Company 1995 Omnibus Stock Plan (incorporated by reference to Exhibit 99.1 to Newfield’s Current Report onForm 8-K filed with the SEC on May 5, 2005 (FileNo. 1-12534)) | |||
†10 | .2 | — | Newfield Exploration Company 1998 Omnibus Stock Plan (incorporated by reference to Exhibit 4.1.1 to Newfield’s Registration Statement onForm S-8 (RegistrationNo. 333-59383)) | |||
†10 | .2.1 | — | Amendment of 1998 Omnibus Stock Plan, dated May 7, 1998 (incorporated by reference to Exhibit 4.1.2 to Newfield’s Registration Statement onForm S-8 (RegistrationNo. 333-59383)) | |||
†10 | .2.2 | — | Second Amendment to Newfield Exploration Company 1998 Omnibus Stock Plan (as amended on May 7, 1998) (incorporated by reference to Exhibit 10.2 to Newfield’s Quarterly Report onForm 10-Q for the quarterly period ended June 30, 2003 (FileNo. 1-12534)) | |||
†10 | .2.3 | — | Third Amendment to Newfield Exploration Company 1998 Omnibus Stock Plan (incorporated by reference to Exhibit 99.2 to Newfield’s Current Report onForm 8-K filed with the SEC on May 5, 2005 (FileNo. 1-12534)) | |||
†10 | .3 | — | Newfield Exploration Company 2000 Omnibus Stock Plan (as amended and restated effective February 14, 2002) (incorporated by reference to Exhibit 10.7.2 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 2001 (FileNo. 1-12534)) | |||
†10 | .3.1 | — | First Amendment to Newfield Exploration Company 2000 Omnibus Plan (as amended and restated effective February 14, 2002) (incorporated by reference to Exhibit 10.3 to Newfield’s Quarterly Report onForm 10-Q for the quarterly period ended June 30, 2003 (FileNo. 1-12534)) | |||
†10 | .3.2 | — | Second Amendment to Newfield Exploration Company 2000 Omnibus Stock Plan (as amended and restated effective February 14, 2002) (incorporated by reference to Exhibit 99.3 to Newfield’s Current Report onForm 8-K filed with the SEC on May 5, 2005 (FileNo. 1-12534)) | |||
†10 | .3.3 | — | Form of TSR 2003 Restricted Stock Agreement between Newfield and each of David A. Trice, David F. Schaible, Elliott Pew, Terry W. Rathert, William D. Schneider, Lee K. Boothby, George T. Dunn, Gary D. Packer, James T. Zernell, Mona Leigh Bernhardt, William Mark Blumenshine, Stephen C. Campbell, James J. Metcalf and Mark J. Spicer dated as of February 12, 2003 (incorporated by reference to Exhibit 10.3.2 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 2004 (File No. 1-12534)) | |||
†10 | .4 | — | Newfield Exploration Company 2004 Omnibus Stock Plan (incorporated by reference to Exhibit 10.2 to Newfield’s Quarterly Report onForm 10-Q for the quarterly period ended March 31, 2004 (FileNo. 1-12534)) | |||
†10 | .4.1 | — | First Amendment to Newfield Exploration Company 2004 Omnibus Stock Plan (incorporated by reference to Exhibit 99.4 to Newfield’s Current Report onForm 8-K filed with the SEC on May 5, 2005 (FileNo. 1-12534)) | |||
†10 | .4.2 | — | Second Amendment to Newfield Exploration Company 2004 Omnibus Stock Plan (incorporated by reference to Exhibit 10.4 to Newfield’s Current Report onForm 8-K/A filed with the SEC on February 21, 2006 (FileNo. 1-12534)) | |||
†10 | .4.3 | — | Form of TSR 2005 Restricted Stock Agreement between Newfield and each of David A. Trice, David F. Schaible, Elliott Pew, Terry W. Rathert, William D. Schneider, Lee K. Boothby, George T. Dunn, Gary D. Packer, James T. Zernell, Mona Leigh Bernhardt, William Mark Blumenshine, Stephen C. Campbell, James J. Metcalf, Mark J. Spicer, Brian L. Rickmers and Susan G. Riggs dated as of February 8, 2005 (incorporated by reference to Exhibit 10.1 to Newfield’s Current Report onForm 8-K filed with the SEC on February 11, 2005 (FileNo. 1-12534)) |
100
Exhibit | ||||||
Number | Title | |||||
†10 | .4.4 | — | Form of TSR 2006 Restricted Stock Agreement between Newfield and each of David A. Trice, David F. Schaible, Elliott Pew, Terry W. Rathert, William D. Schneider, Lee K. Boothby, George T. Dunn, Gary D. Packer, James T. Zernell, Mona Leigh Bernhardt, William Mark Blumenshine, Stephen C. Campbell, James J. Metcalf, Mark J. Spicer, Brian L. Rickmers and Susan G. Riggs dated as of February 14, 2006 (incorporated by reference to Exhibit 10.1 to Newfield’s Current Report onForm 8-K/A filed with the SEC on February 21, 2006 (FileNo. 1-12534)) | |||
†10 | .5 | — | Newfield Exploration Company 2000 Non-Employee Director Restricted Stock Plan (incorporated by reference to Exhibit 10.18 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 1999 (FileNo. 1-12534)) | |||
†10 | .6 | — | Newfield Employee 1993 Incentive Compensation Plan (incorporated by reference to Exhibit 10.5 to Newfield’s Registration Statement onForm S-1 (RegistrationNo. 33-69540)) | |||
†10 | .6.1 | — | Amendment to Newfield Employee 1993 Incentive Compensation Plan (effective as of February 14, 2002) (incorporated by reference to Exhibit 10.9.2 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 2001 (FileNo. 1-12534)) | |||
†10 | .7 | — | Amended and Restated Newfield Exploration Company 2003 Incentive Compensation Plan (incorporated by reference to Exhibit 10.7 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 2004 (File No. 1-12534)) | |||
†10 | .8 | — | Newfield Exploration Company Deferred Compensation Plan (incorporated by reference to Exhibit 10.11 to Newfield’s Registration Statement onForm S-3 (RegistrationNo. 333-32587)) | |||
†10 | .9 | — | Newfield Exploration Company Change of Control Severance Plan (incorporated by reference to Exhibit 10.9 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 2004 (File No. 1-12534)) | |||
†10 | .9.1 | — | First Amendment to Newfield Exploration Company Change of Control Severance Plan (incorporated by reference to Exhibit 10.3 to Newfield’s Current Report onForm 8-K/A filed with the SEC on February 21, 2006 (FileNo. 1-12534)) | |||
†10 | .10.1 | — | Form of Change of Control Severance Agreement between Newfield and each of David A. Trice, David F. Schaible, Elliott Pew and Terry W. Rathert dated effective as of February 17, 2005 (incorporated by reference to Exhibit 10.10 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 2004 (File No. 1-12534)) | |||
†10 | .10.2 | — | Form of Change of Control Severance Agreement between Newfield and each of Lee K. Boothby, George T. Dunn, Gary D. Packer and William D. Schneider dated effective as of February 17, 2005 (incorporated by reference to Exhibit 10.11 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 2004 (File No. 1-12534)) | |||
†10 | .10.3 | — | Form of First Amendment to Change of Control Severance Agreement between Newfield and each executive officer who is a party to such an agreement (incorporated by reference to Exhibit 10.2 to Newfield’s Current Report onForm 8-K/A filed with the SEC on February 21, 2006 (FileNo. 1-12534)) | |||
†10 | .11 | — | Form of Indemnification Agreement between Newfield and each of its directors and executive officers (incorporated by reference to Exhibit 10.1 to Newfield’s Quarterly Report onForm 10-Q for the quarterly period ended June 30, 2005 (File No. 1-12534)) | |||
†10 | .12 | — | Resolution of Members Establishing the Preferences, Limitations and Relative Rights of Series “A” Preferred Shares of Huffco China, LDC dated May 14, 1997 (incorporated by reference to Exhibit 10.15 to Newfield’s Registration Statement onForm S-3 (RegistrationNo. 333-32587)) | |||
10 | .13 | — | Credit Agreement, dated as of December 2, 2005, among Newfield Exploration Company, JP Morgan Chase Bank, N.A., as Administrative Agent and a lender, and the other agents and lenders party thereto (incorporated by reference to Exhibit 10.1 to Newfield’s Current Report onForm 8-K filed with the SEC on December 6, 2005 (FileNo. 1-12534)) | |||
*21 | .1 | — | List of Significant Subsidiaries | |||
*23 | .1 | — | Consent of PricewaterhouseCoopers LLP | |||
*31 | .1 | — | Certification of Chief Executive Officer of Newfield Exploration Company pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
101
Number | Title | |||||
*31 | .2 | — | Certification of Chief Financial Officer of Newfield Exploration Company pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||
*32 | .1 | — | Certification of Chief Executive Officer of Newfield Exploration Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||
*32 | .2 | — | Certification of Chief Financial Officer of Newfield Exploration Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
* | Filed or furnished herewith. |
† | Identifies management contracts and compensatory plans or arrangements. |
102
104
By: | /s/ |
Signature | Title | |||||
/s/DAVID A. TRICE David A. Trice | Chairman, President and Chief Executive Officer and Director (Principal Executive Officer) | |||||
/s/TERRY W. RATHERT Terry W. Rathert | Senior Vice President and Chief Financial Officer (Principal Financial Officer) | |||||
105
/s/ BRIAN L. RICKMERS Brian L. Rickmers | ||||||
/s/ PHILIP J. BURGUIERES Philip J. Burguieres | Director | |||||
/s/ PAMELA J. GARDNER Pamela J. Gardner | Director | |||||
/s/ DENNIS HENDRIX Dennis Hendrix | Director | |||||
/s/ JOHN R. KEMP III John R. Kemp III | Director | |||||
/s/ J. MICHAEL LACEY J. Michael Lacey | Director | |||||
/s/ JOSEPH H. NETHERLAND Joseph H. Netherland | Director | |||||
/s/ HOWARD H. NEWMAN Howard H. Newman | Director | |||||
/s/ THOMAS G. RICKS Thomas G. Ricks | Director |
103
Signature | Title | |||||
/s/JUANITA F. ROMANS Juanita F. Romans | Director | |||||
/s/ DAVID F. SCHAIBLE David F. Schaible | Director | |||||
/s/ C. E. SHULTZ C. E. Shultz | Director | |||||
/s/ J. TERRY STRANGE J. Terry Strange | Director |
104
Exhibit | ||||||
Number | Title | |||||
3 | .1 | — | Second Restated Certificate of Incorporation of Newfield (incorporated by reference to Exhibit 3.1 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 1999 (FileNo. 1-12534)) | |||
3 | .1.1 | — | Certificate of Amendment to Second Restated Certificate of Incorporation of Newfield dated May 15, 1997 (incorporated by reference to Exhibit 3.1.1 to Newfield’s Registration Statement onForm S-3 (RegistrationNo. 333-32582)) | |||
3 | .1.2 | — | Certificate of Amendment to Second Restated Certificate of Incorporation of Newfield dated May 12, 2004 (incorporated by reference to Exhibit 4.2.3 to Newfield’s Registration Statement onForm S-8 (RegistrationNo. 333-116191)) | |||
3 | .1.3 | — | Certificate of Designation of Series A Junior Participating Preferred Stock, par value $0.01 per share, setting forth the terms of the Series A Junior Participating Preferred Stock, par value $0.01 per share (incorporated by reference to Exhibit 3.5 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 1998 (FileNo. 1-12534)) | |||
*3 | .2 | — | Restated Bylaws of Newfield (as amended by Amendment No. 1 thereto adopted January 31, 2000 and Amendment No. 2 thereto adopted July 28, 2005) | |||
4 | .1 | — | Rights Agreement, dated as of February 12, 1999, between Newfield and ChaseMellon Shareholder Services L.L.C., as Rights Agent, specifying the terms of the Rights to Purchase Series A Junior Participating Preferred Stock, par value $0.01 per share, of Newfield (incorporated by reference to Exhibit 1 to Newfield’s Registration Statement onForm 8-A filed with the SEC on February 18, 1999 (FileNo. 1-12534)) | |||
4 | .2 | — | Indenture dated as of October 15, 1997 among Newfield, as issuer, and Wachovia Bank, National Association (formerly First Union National Bank), as trustee (incorporated by reference to Exhibit 4.3 to Newfield’s Registration Statement onForm S-4 (RegistrationNo. 333-39563)) | |||
4 | .3 | — | Senior Indenture dated as of February 28, 2001 between Newfield and Wachovia Bank, National Association (formerly First Union National Bank), as Trustee (incorporated by reference to Exhibit 4.1 to Newfield’s Current Report onForm 8-K filed with the SEC on February 28, 2001 (FileNo. 1-12534)) | |||
4 | .4 | — | Subordinated Indenture dated as of December 10, 2001 between Newfield and Wachovia Bank, National Association (formerly First Union National Bank), as Trustee (incorporated by reference to Exhibit 4.5 of Newfield’s Registration Statement onForm S-3 (RegistrationNo. 333-71348)) | |||
4 | .4.1 | — | First Supplemental Indenture, dated as of August 13, 2002, to Subordinated Indenture dated as of December 10, 2001 between Newfield and Wachovia Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.2 of Newfield’s Current Report onForm 8-K filed with the SEC on August 13, 2002 (FileNo. 1-12534)) | |||
4 | .4.2 | — | Second Supplemental Indenture, dated as of August 18, 2004, to Subordinated Indenture dated as of December 10, 2001 between Newfield and Wachovia Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.6.3 to Newfield’s Registration Statement onForm S-4 (RegistrationNo. 333-122157)) |
Exhibit | ||||||
Number | Title | |||||
†10 | .1 | Newfield Exploration Company 1995 Omnibus Stock Plan (incorporated by reference to Exhibit 4.1 to Newfield’s Registration Statement onForm S-8 (RegistrationNo. 33-92182)) | ||||
.1.1 | First Amendment to Newfield Exploration Company 1995 Omnibus Stock Plan (incorporated by reference to Exhibit 10.1 to Newfield’s Quarterly Report onForm 10-Q for the quarterly period ended June 30, 2003 (FileNo. 1-12534)) | |||||
†10 | .1.2 | — | Second Amendment to Newfield Exploration Company 1995 Omnibus Stock Plan (incorporated by reference to Exhibit 99.1 to Newfield’s Current Report onForm 8-K filed with the SEC on May 5, 2005 (FileNo. 1-12534)) | |||
†10 | .2 | — | Newfield Exploration Company 1998 Omnibus Stock Plan (incorporated by reference to Exhibit 4.1.1 to Newfield’s Registration Statement onForm S-8 (RegistrationNo. 333-59383)) | |||
†10 | .2.1 | — | Amendment of 1998 Omnibus Stock Plan, dated May 7, 1998 (incorporated by reference to Exhibit 4.1.2 to Newfield’s Registration Statement onForm S-8 (RegistrationNo. 333-59383)) | |||
†10 | .2.2 | — | Second Amendment to Newfield Exploration Company 1998 Omnibus Stock Plan (as amended on May 7, 1998) (incorporated by reference to Exhibit 10.2 to Newfield’s Quarterly Report onForm 10-Q for the quarterly period ended June 30, 2003 (FileNo. 1-12534)) | |||
†10 | .2.3 | — | Third Amendment to Newfield Exploration Company 1998 Omnibus Stock Plan (incorporated by reference to Exhibit 99.2 to Newfield’s Current Report onForm 8-K filed with the SEC on May 5, 2005 (FileNo. 1-12534)) | |||
†10 | .3 | — | Newfield Exploration Company 2000 Omnibus Stock Plan (as amended and restated effective February 14, 2002) (incorporated by reference to Exhibit 10.7.2 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 2001 (FileNo. 1-12534)) | |||
†10 | .3.1 | — | First Amendment to Newfield Exploration Company 2000 Omnibus Plan (as amended and restated effective February 14, 2002) (incorporated by reference to Exhibit 10.3 to Newfield’s Quarterly Report onForm 10-Q for the quarterly period ended June 30, 2003 (FileNo. 1-12534)) | |||
†10 | .3.2 | — | Second Amendment to Newfield Exploration Company 2000 Omnibus Stock Plan (as amended and restated effective February 14, 2002) (incorporated by reference to Exhibit 99.3 to Newfield’s Current Report onForm 8-K filed with the SEC on May 5, 2005 (FileNo. 1-12534)) | |||
†10 | .3.3 | — | Form of TSR 2003 Restricted Stock Agreement between Newfield and each of David A. Trice, David F. Schaible, Elliott Pew, Terry W. Rathert, William D. Schneider, Lee K. Boothby, George T. Dunn, Gary D. Packer, James T. Zernell, Mona Leigh Bernhardt, William Mark Blumenshine, Stephen C. Campbell, James J. Metcalf and Mark J. Spicer dated as of February 12, 2003 (incorporated by reference to Exhibit 10.3.2 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 2004 (File No. 1-12534)) | |||
†10 | .4 | — | Newfield Exploration Company 2004 Omnibus Stock Plan (incorporated by reference to Exhibit 10.2 to Newfield’s Quarterly Report onForm 10-Q for the quarterly period ended March 31, 2004 (FileNo. 1-12534)) | |||
†10 | .4.1 | — | First Amendment to Newfield Exploration Company 2004 Omnibus Stock Plan (incorporated by reference to Exhibit 99.4 to Newfield’s Current Report onForm 8-K filed with the SEC on May 5, 2005 (FileNo. 1-12534)) | |||
†10 | .4.2 | — | Second Amendment to Newfield Exploration Company 2004 Omnibus Stock Plan (incorporated by reference to Exhibit 10.4 to Newfield’s Current Report onForm 8-K/A filed with the SEC on February 21, 2006 (FileNo. 1-12534)) | |||
†10 | .4.3 | — | Form of TSR 2005 Restricted Stock Agreement between Newfield and each of David A. Trice, David F. Schaible, Elliott Pew, Terry W. Rathert, William D. Schneider, Lee K. Boothby, George T. Dunn, Gary D. Packer, James T. Zernell, Mona Leigh Bernhardt, William Mark Blumenshine, Stephen C. Campbell, James J. Metcalf, Mark J. Spicer, Brian L. Rickmers and Susan G. Riggs dated as of February 8, 2005 (incorporated by reference to Exhibit 10.1 to Newfield’s Current Report onForm 8-K filed with the SEC on February 11, 2005 (FileNo. 1-12534)) |
106
Exhibit | ||||||
Number | Title | |||||
†10 | .4.4 | — | Form of TSR 2006 Restricted Stock Agreement between Newfield and each of David A. Trice, David F. Schaible, Elliott Pew, Terry W. Rathert, William D. Schneider, Lee K. Boothby, George T. Dunn, Gary D. Packer, James T. Zernell, Mona Leigh Bernhardt, William Mark Blumenshine, Stephen C. Campbell, James J. Metcalf, Mark J. Spicer, Brian L. Rickmers and Susan G. Riggs dated as of February 14, 2006 (incorporated by reference to Exhibit 10.1 to Newfield’s Current Report onForm 8-K/A filed with the SEC on February 21, 2006 (FileNo. 1-12534)) | |||
†10 | .5 | — | Newfield Exploration Company 2000 Non-Employee Director Restricted Stock Plan (incorporated by reference to Exhibit 10.18 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 1999 (FileNo. 1-12534)) | |||
†10 | .6 | — | Newfield Employee 1993 Incentive Compensation Plan (incorporated by reference to Exhibit 10.5 to Newfield’s Registration Statement onForm S-1 (RegistrationNo. 33-69540)) | |||
†10 | .6.1 | — | Amendment to Newfield Employee 1993 Incentive Compensation Plan (effective as of February 14, 2002) (incorporated by reference to Exhibit 10.9.2 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 2001 (FileNo. 1-12534)) | |||
†10 | .7 | — | Amended and Restated Newfield Exploration Company 2003 Incentive Compensation Plan (incorporated by reference to Exhibit 10.7 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 2004 (File No. 1-12534)) | |||
†10 | .8 | — | Newfield Exploration Company Deferred Compensation Plan (incorporated by reference to Exhibit 10.11 to Newfield’s Registration Statement onForm S-3 (RegistrationNo. 333-32587)) | |||
†10 | .9 | — | Newfield Exploration Company Change of Control Severance Plan (incorporated by reference to Exhibit 10.9 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 2004 (File No. 1-12534)) | |||
†10 | .9.1 | — | First Amendment to Newfield Exploration Company Change of Control Severance Plan (incorporated by reference to Exhibit 10.3 to Newfield’s Current Report onForm 8-K/A filed with the SEC on February 21, 2006 (FileNo. 1-12534)) | |||
†10 | .10.1 | — | Form of Change of Control Severance Agreement between Newfield and each of David A. Trice, David F. Schaible, Elliott Pew and Terry W. Rathert dated effective as of February 17, 2005 (incorporated by reference to Exhibit 10.10 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 2004 (File No. 1-12534)) | |||
†10 | .10.2 | — | Form of Change of Control Severance Agreement between Newfield and each of Lee K. Boothby, George T. Dunn, Gary D. Packer and William D. Schneider dated effective as of February 17, 2005 (incorporated by reference to Exhibit 10.11 to Newfield’s Annual Report onForm 10-K for the year ended December 31, 2004 (File No. 1-12534)) | |||
†10 | .10.3 | — | Form of First Amendment to Change of Control Severance Agreement between Newfield and each executive officer who is a party to such an agreement (incorporated by reference to Exhibit 10.2 to Newfield’s Current Report onForm 8-K/A filed with the SEC on February 21, 2006 (FileNo. 1-12534)) | |||
†10 | .11 | — | Form of Indemnification Agreement between Newfield and each of its directors and executive officers (incorporated by reference to Exhibit 10.1 to Newfield’s Quarterly Report onForm 10-Q for the quarterly period ended June 30, 2005 (File No. 1-12534)) | |||
†10 | .12 | — | Resolution of Members Establishing the Preferences, Limitations and Relative Rights of Series “A” Preferred Shares of Huffco China, LDC dated May 14, 1997 (incorporated by reference to Exhibit 10.15 to Newfield’s Registration Statement onForm S-3 (RegistrationNo. 333-32587)) | |||
10 | .13 | — | Credit Agreement, dated as of December 2, 2005, among Newfield Exploration Company, JP Morgan Chase Bank, N.A., as Administrative Agent and a lender, and the other agents and lenders party thereto (incorporated by reference to Exhibit 10.1 to Newfield’s Current Report onForm 8-K filed with the SEC on December 6, 2005 (FileNo. 1-12534)) | |||
*21 | .1 | — | List of Significant Subsidiaries | |||
*23 | .1 | — | Consent of PricewaterhouseCoopers LLP | |||
*31 | .1 | — | Certification of Chief Executive Officer of Newfield Exploration Company pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
*31 | .2 | — | Certification of Chief Financial Officer of Newfield Exploration Company pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||
*32 | .1 | — | Certification of Chief Executive Officer of Newfield Exploration Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||
*32 | .2 | — | Certification of Chief Financial Officer of Newfield Exploration Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
Exhibit | ||||||
Number | Title | |||||
3 | .1 | — | Second Restated Certificate of Incorporation of Newfield (incorporated by reference to Exhibit 3.1 to Newfield’s Annual Report on Form 10-K for the year ended December 31, 1999 (File No. 1-12534)) | |||
3 | .1.1 | — | Certificate of Amendment to Second Restated Certificate of Incorporation of Newfield dated May 15, 1997 (incorporated by reference to Exhibit 3.1.1 to Newfield’s Registration Statement on Form S-3 (Registration No. 333-32582)) | |||
3 | .1.2 | — | Certificate of Amendment to Second Restated Certificate of Incorporation of Newfield dated May 12, 2004 (incorporated by reference to Exhibit 4.2.3 to Newfield’s Registration Statement on Form S-8 (Registration No. 333-116191)) | |||
3 | .1.3 | — | Certificate of Designation of Series A Junior Participating Preferred Stock, par value $0.01 per share, setting forth the terms of the Series A Junior Participating Preferred Stock, par value $0.01 per share (incorporated by reference to Exhibit 3.5 to Newfield’s Annual Report on Form 10-K for the year ended December 31, 1998 (File No. 1-12534)) | |||
3 | .2 | — | Restated Bylaws of Newfield as amended by Amendment No. 1 thereto adopted January 31, 2000 (incorporated by reference to Exhibit 3.3 to Newfield’s Annual Report on Form 10-K for the year ended December 31, 1999 (File No. 1-12534)) | |||
4 | .1 | — | Rights Agreement, dated as of February 12, 1999, between Newfield and ChaseMellon Shareholder Services L.L.C., as Rights Agent, specifying the terms of the Rights to Purchase Series A Junior Participating Preferred Stock, par value $0.01 per share, of Newfield (incorporated by reference to Exhibit 1 to Newfield’s Registration Statement on Form 8-A filed with the SEC on February 18, 1999 (File No. 1-12534)) | |||
4 | .2 | — | Indenture dated as of October 15, 1997 among Newfield, as issuer, and Wachovia Bank, National Association (formerly First Union National Bank), as trustee (incorporated by reference to Exhibit 4.3 to Newfield’s Registration Statement on Form S-4 (Registration No. 333-39563)) | |||
4 | .3 | — | Senior Indenture dated as of February 28, 2001 between Newfield and Wachovia Bank, National Association (formerly First Union National Bank), as Trustee (incorporated by reference to Exhibit 4.1 to Newfield’s Current Report on Form 8-K filed with the SEC on February 28, 2001 (File No. 1-12534)) | |||
4 | .4 | — | Subordinated Indenture dated as of December 10, 2001 between Newfield and Wachovia Bank, National Association (formerly First Union National Bank), as Trustee (incorporated by reference to Exhibit 4.5 of Newfield’s Registration Statement on Form S-3 (Registration No. 333-71348) | |||
4 | .4.1 | — | First Supplemental Indenture, dated as of August 13, 2002, to Subordinated Indenture dated as of December 10, 2001 between Newfield and Wachovia Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.2 of Newfield’s Current Report on Form 8-K filed with the SEC on August 13, 2002 (File No. 1-12534)) | |||
4 | .4.2 | — | Second Supplemental Indenture, dated as of August 18, 2004, to Subordinated Indenture dated as of December 10, 2001 between Newfield and Wachovia Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.6.3 to Newfield’s Registration Statement on Form S-4 (Registration No. 333-122157)) | |||
4 | .4.2.1 | — | Registration Rights Agreement, dated August 18, 2004, among Newfield, Morgan Stanley & Co. Incorporated and the other initial purchasers named therein (incorporated by reference to Exhibit 4.7 to Newfield’s Registration Statement on Form S-4 (Registration No. 333-122157)) | |||
†10 | .1 | — | Newfield Exploration Company 1995 Omnibus Stock Plan (incorporated by reference to Exhibit 4.1 to Newfield’s Registration Statement on Form S-8 (Registration No. 33-92182)) | |||
†10 | .1.1 | — | First Amendment to Newfield Exploration Company 1995 Omnibus Stock Plan (incorporated by reference to Exhibit 10.1 to Newfield’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2003 (File No. 1-12534)) | |||
†10 | .2 | — | Newfield Exploration Company 1998 Omnibus Stock Plan (incorporated by reference to Exhibit 4.1.1 to Newfield’s Registration Statement on Form S-8 (Registration No. 333-59383)) | |||
†10 | .2.1 | — | Amendment of 1998 Omnibus Stock Plan, dated May 7, 1998 (incorporated by reference to Exhibit 4.1.2 to Newfield’s Registration Statement on Form S-8 (Registration No. 333-59383)) | |||
†10 | .2.2 | — | Second Amendment to Newfield Exploration Company 1998 Omnibus Stock Plan (as amended on May 7, 1998) (incorporated by reference to Exhibit 10.2 to Newfield’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2003 (File No. 1-12534)) |
Exhibit | ||||||
Number | Title | |||||
†10 | .3.1 | — | First Amendment to Newfield Exploration Company 2000 Omnibus Plan (as amended and restated effective February 14, 2002) (incorporated by reference to Exhibit 10.3 to Newfield’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2003 (File No. 1-12534)) | |||
*†10 | .3.2 | — | Form of TSR 2003 Restricted Stock Agreement between Newfield and each of David A. Trice, David F. Schaible, Elliott Pew, Terry W. Rathert, Lee K. Boothby, George T. Dunn, Gary D. Packer and William D. Schneider dated as of February 12, 2003 | |||
†10 | .4 | — | Newfield Exploration Company 2004 Omnibus Stock Plan (incorporated by reference to Exhibit 10.2 to Newfield’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2004 (File No. 1-12534)) | |||
†10 | .4.1 | — | Form of TSR 2005 Restricted Stock Agreement between Newfield and each of David A. Trice, David F. Schaible, Elliott Pew, Terry W. Rathert, Lee K. Boothby, George T. Dunn, Gary D. Packer, William D. Schneider, Brian L. Rickmers and Susan G. Riggs dated as of February 8, 2005 (incorporated by reference to Exhibit 10.1 to Newfield’s Current Report on Form 8-K filed with the SEC on February 11, 2005 (File No. 1-12534)) | |||
†10 | .5 | — | Newfield Exploration Company 2000 Non-Employee Director Restricted Stock Plan (incorporated by reference to Exhibit 10.18 to Newfield’s Annual Report on Form 10-K for the year ended December 31, 1999 (File No. 1-12534)) | |||
†10 | .6 | — | Newfield Employee 1993 Incentive Compensation Plan (incorporated by reference to Exhibit 10.5 to Newfield’s Registration Statement on Form S-1 (Registration No. 33-69540)) | |||
†10 | .6.1 | — | Amendment to Newfield Employee 1993 Incentive Compensation Plan (effective as of February 14, 2002) (incorporated by reference to Exhibit 10.9.2 to Newfield’s Annual Report on Form 10-K for the year ended December 31, 2001 (File No. 1-12534)) | |||
*†10 | .7 | — | Amended and Restated Newfield Exploration Company 2003 Incentive Compensation Plan | |||
†10 | .8 | — | Newfield Exploration Company Deferred Compensation Plan (incorporated by reference to Exhibit 10.11 to Newfield’s Registration Statement on Form S-3 (Registration No. 333-32587)) | |||
*†10 | .9 | — | Newfield Exploration Company Change of Control Severance Plan | |||
*†10 | .10 | — | Form of Change of Control Severance Agreement between Newfield and each of David A. Trice, David F. Schaible, Elliott Pew and Terry W. Rathert dated effective as of February 17, 2005 | |||
*†10 | .11 | — | Form of Change of Control Severance Agreement between Newfield and each of Lee K. Boothby, George T. Dunn, Gary D. Packer and William D. Schneider dated effective as of February 17, 2005 | |||
†10 | .12 | — | Employment Agreement between Newfield and Joe B. Foster dated January 31, 2000 (incorporated by reference to Exhibit 10 to Newfield’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2000 (File No. 1-12534)) | |||
†10 | .13 | — | Resolution of Members Establishing the Preferences, Limitations and Relative Rights of Series “A” Preferred Shares of Huffco China, LDC dated May 14, 1997 (incorporated by reference to Exhibit 10.15 to Newfield’s Registration Statement on Form S-3 (Registration No. 333-32587)) | |||
10 | .14 | — | Credit Agreement, dated as of March 16, 2004, among Newfield, the Lenders party thereto and JPMorgan Chase Bank, as Administrative Agent and as Issuing Bank(incorporated by reference to Exhibit 10.1 to Newfield’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2004 (File No. 1-12534)) | |||
*21 | .1 | — | List of Significant Subsidiaries | |||
*23 | .1 | — | Consent of PricewaterhouseCoopers LLP | |||
*31 | .1 | — | Certification of Chief Executive Officer of Newfield Exploration Company pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||
*31 | .2 | — | Certification of Chief Financial Officer of Newfield Exploration Company pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||
*32 | .1 | — | Certification of Chief Executive Officer of Newfield Exploration Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||
*32 | .2 | — | Certification of Chief Financial Officer of Newfield Exploration Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
* | Filed or furnished herewith. |
† | Identifies management contracts and compensatory plans or arrangements. |